Budget 2024 Expectations Highlights: Will there be tax reforms in the upcoming Budget?

We eagerly anticipate the upcoming budget, especially regarding policies and regulations that will shape the future of the tech and HR sectors, says Vikas Kakkar, CEO and Founder of Amara.ai.

Incentives for research and development, as well as funding for innovative startups, would significantly bolster the tech ecosystem, he says, adding that regulatory frameworks that simplify compliance and foster a conducive environment for startups to thrive is expected.

Streamlined tax structures and improved ease of doing business can attract more investments and talent into the sector, he suggests.

The logistics industry is looking forward to the upcoming budget with high expectations, particularly for more detailed and concrete measures, says Raghav Singhal, Executive Director of Om Logistics.

While the government’s initiatives like PM Gati Shakti and the National Logistics Policy are commendable, businesses are seeking clarity on their tangible impacts. Companies focused on sustainable logistics are especially interested in specific financial support and waivers to aid in transitioning to greener practices.

Clear communication about these policies will provide necessary transparency, helping MSME-based logistics players understand how to leverage these initiatives, he says.

-The fiscal deficit for 2024-25 is projected at 5.1%, a decrease from the current fiscal year’s 5.8%.

-Government borrowing for the next fiscal year will be Rs 14.13 lakh crore, down from Rs 15.43 lakh crore in 2023-24.

-The nominal GDP for 2024-25 is estimated to grow at 10.5%.

-Disinvestment from Central Public Sector Enterprises (CPSEs) is set at Rs 50,000 crore for the upcoming fiscal year, up from Rs 30,000 crore in the current year.

Finance Minister Nirmala Sitharaman presented the interim Budget on February 1. Here are some highlights:

-No changes in direct or indirect tax rates.

-Withdrawal of income tax demands up to Rs 25,000 for the fiscal year 2009-10; demands up to Rs 10,000 for the years 2010-11 to 2014-15 also withdrawn.

-Initiative expected to benefit approximately one crore taxpayers.

-Extension of tax benefits to startups and investments made by sovereign wealth funds or pension funds for an additional year, until March 31, 2025.

-A notable 11% increase in capital expenditure to reach Rs 11.11 lakh crore.

The Union Budget 2024-25 is all set to be presented on July 23 by Nirmala Sitharaman. Ahead the presentation of the Budget, the halwa ceremony took place on July 23.

Since taking office in 2014, the Narendra Modi-led BJP government has done away several traditional aspects of the Budget, including merging the Rail Budget with the main Budget, advancing the presentation date to February 1 from the month’s end, and transitioning to a digital format. However, the ‘halwa’ ceremony still remains a surviving tradition.

Finance Minister Nirmala Sitharaman is set to present the 2024-25 Union Budget on July 23. As the fintech industry looks ahead, there are several expectations from the government to support the sector and help India achieve its goal of becoming the third-largest economy and a developed nation by 2047.

Pre-budget discussions with industry groups have already begun, with many leaders anticipating a growth-centric budget. Here are some key expectations from the upcoming budget-

There is a broad expectation that the Union Budget 2024 will introduce income tax reforms aimed at reducing the tax burden on lower income brackets to stimulate spending. Currently, income tax rates in the new tax regime range from 5% for earnings above Rs 3 lakh to 30% for incomes exceeding Rs 15 lakh. There is potential to rationalize this structure to increase disposable incomes, thereby boosting economic activity and GST collections.

Finance Minister Nirmala Sitharaman is scheduled to unveil the Union Budget 2024-25 on July 23. As anticipation builds, leaders in the diagnostics industry are hopeful for new strategic initiatives and increased investments.

Dhiraj Jain, Founder & Chairman of Redcliffe Labs, shared with Financial Express.com his eagerness for the budget, emphasizing the need for a strong commitment to transforming the healthcare sector with a focus on accessibility and affordability.

India‘s healthcare sector saw exceptional growth in 2023, highlighted by significant mergers and acquisitions, consolidation, and substantial private equity investments. The rise in stock prices and improved financial performance contributed to a valuation of $372 billion. This success was fueled not only by the private sector’s dynamism but also by key government initiatives that played an essential role in the sector’s advancement, as noted by Jain.

(Read more)

In a proactive appeal ahead of the Union Budget on July 23, the All India Federation of Tax Practitioners (AIFTP) has urged the government to implement significant reductions in personal income tax for citizens. AIFTP President Narayan Jain strongly advocated for increasing the exemption limit to Rs 5 lakh, aligning with the organization’s goal of easing the tax burden on the public, as reported by PTI.

In his memorandum to the Finance Minister, Jain proposed that income between Rs 5 lakh and Rs 10 lakh should be taxed at a rate of 10%, while earnings from Rs 10 lakh to Rs 20 lakh should be subject to a 20% tax rate. For incomes exceeding Rs 20 lakh, he recommended a tax rate of 25%.

The Covid-19 pandemic has profoundly affected global economies, and defence budgets have not been spared. As nations confronted unprecedented public health challenges and economic downturns, decisions regarding defence funding were significantly influenced, resulting in reallocations, cuts, and delays in defence projects.

Many countries found themselves compelled to redirect resources to address the immediate health crisis. Funds originally designated for defence were shifted to strengthen healthcare systems, procure medical supplies, and support economic relief initiatives. For example, the United Kingdom allocated part of its defence budget to aid the National Health Service (NHS) and other emergency services. Similarly, India implemented budget cuts across various sectors, including defence, to finance pandemic relief efforts.

(Read more)

The debate over whether to include hybrid cars in the Faster Adoption and Manufacturing of Electric Vehicles policy (FAME III) has been ongoing. Earlier this year, Union Minister for Road Transport and Highways, Nitin Gadkari, announced plans to propose a reduction in GST on hybrid cars to 5% and on flex-fuel engines to 12%. This initiative has now influenced Uttar Pradesh, India‘s second-largest state, which has decided to waive the registration tax on hybrid vehicles eligible under FAME II. So, what can hybrid car manufacturers anticipate from the upcoming 2024 Budget?

(Read more)

PwC India has urged the government to extend the concessional corporate tax rate of 15% for new manufacturing units for at least five more years to enhance domestic manufacturing and promote import substitution. This request, highlighted by PwC partners in a press briefing on Wednesday, is a significant demand from the industry that the Centre should consider for the upcoming full Budget.

Earlier reports from FE indicated that the government might introduce a new scheme offering a concessional corporate tax rate for new manufacturing units in the Budget, aiming to maintain momentum in private capital expenditure. This new scheme is expected to mirror the previous one that provided a 15% tax rate, compared to 22% for other sectors, which expired on March 31, 2024.

The 15% concessional tax regime was initially implemented through an ordinance in September 2019, effective from FY20, for domestic manufacturing companies established after October 1, 2019, and that commenced production before the sunset deadline of March 31, 2024. This initiative was designed to incentivize manufacturing by creating a more competitive tax environment.

As we approach the #unionbudget2024, the Confederation of Indian Industry (CII) presents key recommendations to enhance consumption demand.

CII Recommendations for Union Budget 2024-25:

Reduce fuel taxes to increase disposable incomes and stimulate consumption.

Additionally, raise MNREGA wages and enhance DBT amounts under PM-Kisan

You can access the Budget document through the “Union Budget Mobile App” . It will be available in both Android and Apple OS platforms. As soon as the Finance Minister completes her Budget Speech on July 23, it will be available on this platform.

Finance Minister Nirmala Sitharaman is likely to detail out the contours of ‘Viksit Bharat by 2047’ objective of the Government. Given the election outcomes, the popular consensus is this balance will hinge heavily on welfare with a Pro-People approach.

The middle class is expected to see sizeable income tax relieve, especially the tax slabs. Those are set to be revised.

Taxes on fuel are also on the focus. Experts have been recommending a cut on these taxes to help shore up the share of disposable income.

Nirmala Sitharaman is set to present the Union Budget for 2024-25 on July 23. Climate change remains a significant threat to human health. The World Health Organization (WHO) reports that climate change is directly linked to humanitarian emergencies, including heatwaves, wildfires, floods, tropical storms, and hurricanes, all of which are becoming more frequent and intense.

Research indicates that 3.6 billion people currently reside in areas highly vulnerable to climate change. Between 2030 and 2050, it is projected that climate change will result in approximately 250,000 additional deaths annually due to undernutrition, malaria, diarrhoea, and heat stress.

Moreover, the direct health-related damage costs (excluding impacts on sectors like agriculture and water and sanitation) are estimated by the WHO to reach between US$ 2–4 billion per year by 2030.

(Read more)

Ahead of the FY25 Annual Budget, the Ministry of Defence (MoD) has made a significant move toward achieving self-reliance in defense by announcing the fifth Positive Indigenisation List (PIL) for Defence Public Sector Undertakings (DPSUs).

This list includes 346 strategically important items aimed at reducing imports and enhancing domestic production. The Department of Defence Production (DDP) noted that these items have an import substitution value of ₹1,048 crore and will be sourced exclusively from Indian industries, following the indigenisation timelines outlined on the Srijan portal.

(Read more)

Finance Minister Nirmala Sitharaman is poised to present her seventh budget in Parliament on July 23. The budget is highly anticipated, with various sectors eagerly awaiting its revelations. Among them, smartphone buyers are particularly anxious to see if the budget will make phones more affordable.

Last year, the government reduced import taxes on key components like camera lenses to boost India‘s mobile phone manufacturing. Furthermore, the finance minister extended a reduced tax rate on lithium-ion batteries, a crucial component for phones and electric vehicles. These policy changes aim to make it cheaper for companies to manufacture phones within India.

(Read more)

The excitement surrounding Budget 2024 is significant, particularly for the travel and hospitality sectors. With the government prioritizing tourism growth, industry stakeholders are eager for policies that could make travel more affordable.

Kanika Tekriwal, Founder and CEO of JetSetGo, expresses optimism about India‘s potential in the global aviation market. She advocates for customs exemptions for Non-Scheduled Operators (NSOs) that mirror those granted to scheduled air operations, which would simplify the import process and create a more equitable environment. Additionally, Tekriwal highlights the importance of including aviation fuel under the GST regime to streamline the tax structure and lower operational costs.

(Read more)

Finance Minister Nirmala Sitharaman is set to present the Modi 3.0 regime’s first budget on July 23, with expectations for significant announcements across various sectors. Salaried taxpayers, particularly those earning under Rs 10 lakh annually, are hopeful for much-needed tax relief.

With no major changes in taxation policies over the past two budgets, taxpayers are optimistic that this budget may introduce substantial tax breaks. Analysts suggest that the government’s focus on providing relief is aimed at easing the high cost of living and boosting consumption by enhancing disposable income.

(Read more)

The Govt has shown a decided push towards renewable energy and most industry stakeholders believe that this budget will set a roadmap that will pave the way towards the Govt achieving its ambitious COP 26 targets.

One of the key schemes in the solar Power sectors is the Surya Ghar program. This scheme aims to solarise 1 crore homes and even includes incentives and subsidies to fasten the pace of adoption.

Many states like UP and Assam are also offering additioal subsidies to incentivise adoption. Manoj Gopalan Nair, Sr. Director, Sales-India, Enphase Energy expects other states to follow suit, “We expect many other states to follow suit in their respective budgets. We may see investments in local partnerships with urban and rural bodies and digital resource building. Concurrently, the government may invest in a centralised dashboard to monitor solar performance and usage at local levels, facilitating better management and optimisation of solar systems nationwide.”

Ahead of the Budget 2024 presentation, Pavan Ranga, CEO of Rangsons Aerospace, outlines his vision for India’s aerospace and defense sectors. He emphasizes the urgent need to reduce reliance on the public sector for manufacturing and R&D, which he believes has impeded progress.

In an exclusive interview with Financial Express.com, Ranga highlights the importance of encouraging private sector participation through stable and supportive policies. He advocates for a substantial increase in research and development funding to 2 percent of GDP to drive innovation and enhance global competitiveness.

Ranga also suggests privatizing certain Defence Research and Development Organisation (DRDO) laboratories to improve efficiency. By emphasizing technology transfer in new aircraft deals, he believes these measures are essential for India to fulfill its ‘Make in India’ ambitions and emerge as a global leader in aerospace.

Kapil Bardeja, CEO and Co-Founder, of Vehant Technologies, said, “Investments in deep-tech infrastructure such as artificial intelligence (AI) and machine learning (ML) will be key drivers for taking another step toward the future of the industry. Under the smart city mission, each of the 100 cities has embarked on unique initiatives for achieving larger transformational goals. We would like the government to extend it further to other Tier 2 and Tier 3 cities while aligning with the “Make in India” initiative.”

He further added that as a next step in the development of urban areas, state governments should prioritise on ‘Make in India’ initiative. “This will reinforce our commitment towards safer, smarter urban spaces through a vision for Budget 2024. Our commitment remains strong to creating safer & smarter environments even as we look forward to working with the government on building a connected and secure future, he said.

Finance Minister Nirmala Sitharaman is set to announce the Union Budget 2024 on July 23. Vishal Bali, Executive Chairman of Asia Healthcare Holdings (AHH), noted that this budget arrives in a transformed political landscape in India. Despite global economic challenges, India’s growth potential remains highly promising.

Bali emphasized that this is a crucial moment for India to balance capital conservation with necessary reforms. He pointed out that the government has indicated that the upcoming budget will focus on sustaining the country’s economic growth trajectory. He believes that nations prioritizing self-sufficiency through domestic manufacturing and consumption are more likely to navigate economic turmoil effectively.

India is projected to spend 2.25 trillion rupees ($11.97 billion) on food subsidies this fiscal year, according to a Reuters report. This represents an increase of approximately 11% from the interim budget estimate in February, driven by higher expenditures on support prices for farmers. The total combined expenditure on food and fertilizers is expected to reach 3.88 trillion rupees, a 5% increase from the interim budget estimate released before the election.

The Congress party has asserted that India has been stuck in a cycle of low investment since 2014, attributing it to “erratic policy, rampant cronyism, and the ED/IT/CBI raid raj.” They emphasized the need for a new liberalized approach to the political economy. In anticipation of the Union Budget presentation next week, Congress General Secretary of Communications, Jairam Ramesh, highlighted the “sluggish investment rate” as the key statistic explaining India’s slower growth since 2014.

Financialexpress.com will host a live blog on Budget Day, providing real-time updates, analysis, and reactions from key figures in Indian industry and top political leaders. You can watch Finance Minister Sitharaman’s Union Budget presentation live on the official Finance Ministry website at http://www.finmin.nic.in. The national broadcaster Doordarshan and the Sansad TV channel will also telecast the Budget presentation live. (Read More)

Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance, said, “Addressing inflation is crucial for securing a robust financial future for individuals, as it will enable them to have more money in hand, towards savings and investments for their long-term goals and financial security. With increased earning power and disposable income, Indian citizens will be able to invest in versatile life insurance products for their peace of mind and financial goals. Given the under penetration of life insurance in the country, there is substantial room for sectoral growth.”

He further stated that the insurance industry expects that the finance minister considers lowering the GST on life insurance products. “Additionally, in the pension products category, with the objective of securing post-retirement financial needs of the individuals, we urge the government to align life insurance annuity or pension products with the National Pension Scheme (NPS) and allow the similar additional deduction of Rs 50,000 or more for life insurance annuity or pension products under Income Tax,” he said.

“We also request the ministry to introduce Long Term Capital Gain taxability for all high value traditional life insurance plans (more than Rs 5 lakhs aggregate annual premium), in line with high value ULIPs,” he added.

Yesterday, the halwa ceremony which marks the final stage of the Budget preparation process, was held in North Block, in the presence of Finance Minister Nirmala Sitharaman.

Greetings! Welcome to this live blog. Here, we will keep you updated with the latest expectations and developments around the presentation of the Union Budget. Stay tuned to know more on what the industry stakeholders are talking about and ar expecting from the Budget, to be presented by Finance Minister Nirmala Sitharaman on July 23.