Bengaluru, Feb 1 (PTI) The Federation of Karnataka Chamber of Commerce and Industry welcomed the Union Budget presented by Finance Minister Nirmala Sitharaman on Saturday.

The FKCCI president M G Balakrishna termed the budget as "pretty good" and said the government considered the demand for removing Tax Collection at Source.

"The budget is pretty good. We had asked for a few particular things such as Tax Deduction at Source (TDS) and Tax Collection at Source (TCS). The government has considered that. They have removed TCS," Balakrishna told PTI.

According to him, the budget favours the middle class by giving tax exemption for income up to Rs 12 lakh per annum.

Importance is given to the Micro, Small and Medium Enterprises (MSME) and the manufacturing sector. The Centre has redefined the MSME in terms of their turnover and investment, the FKCCI president said.

Balakrishna said some materials imported by various industries and some drugs are exempted from customs duty. "That will be a good development for the manufacturing sector and health sector,” he added.

The FKCCI chief said that importance is given to agriculture too as the loans and the equipment are given tax exemption. PTI GMS GMS ADB

Removal of Tax Collection at Source eases compliance, with expanded exemptions and MSME relief following the budget. The budget removes Tax Collection at Source, addresses withholding-related demands, and increases the individual tax exemption threshold to favour the middle class. It redefines MSME eligibility by turnover and investment, offers support to manufacturing through customs duty exemptions on certain imports and drugs, and provides tax exemptions for agricultural loans and equipment to reduce costs for the farming sector.