Budget 2024 Speech highlights: Nirmala Sitharaman abolishes Angel Tax, STT on F&O hiked

Finance Minister Nirmala Sitharaman presented the Budget tablet in the red pouch outside the Ministry of Finance in North Block. She is accompanied by her team and she will present the Union Budget at 11 am.

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Potential increase in the standard deduction limits is expected to offer additional tax relief for the salaried class. Apart from that the Government may also offer relief measures to make the new tax regime more attractive.

The Rupee is currently at 83.88, relatively muted ahead of the BUdget Speech buy Finance Minister Sitharaman. The currency is eyeing potential action by the RBI to limit losses.

The GIFT Nifty is trading flat after a positive start. The expectation is that the markets may be seeing a relatively roller coaster session.

According to SP Tulsian, CEO & Editor sptulsian.com, “Market seen extremely positive, due to FIIs seen buyers in cash, made our markets seen having moved in an overbought position, which may continue to see being long liquidation by weak hands, ahead of budget.”

The Budget 2024 is likely to focus on key schemes for the agriculture sector. Pradhan Mantri Kisan Man Dhan Yojana (PM-KMY) along with PM Awas Yojana for rural housing are some of the key schemes that will be in focus.

Nirmala Sitharaman reaches North Block ahead of presenting the Budget speech at 11 am. This will be her 7th straight Budget and with this she surpasses Morarji Desai’s record.

During the interim Budget, the Finance Minister referred to PM Modi’s objective of ‘Viksit Bharat 2047’. All eyes are on Finance Minister’s Budget speech on the allocations that might be announced to boost the capex and ecocomic growth.

India’s Q4 Gross Domestic Product (GDP) zoomed up to 8.2%, amounting to Rs 47.24 lakh crore. At the current pace is the world’s fifth largest economy in the world. From 2019 to 2024, the GDP has risen to current levels from 3.9% in 2019 .

Indirect tax receipts (excluding borrowings) for the fiscal are set to be around Rs 27,16,281 crore. This is nearly 12% higher than the FY23 revised estimates.

In comparison, direct tax collections have tripled in the past 10 years. Average monthly gross collection for GST collection doubled to Rs 1.66 lakh crore this year.

Income tax rates are one of the most talked about ahead of the Finance Minister’ speech at 11 am. The expectation is that the tax slabs and standard deduction rates may be tweaked to enable more money coming into the hands of the consumers.

When the Finance Minister tables the Budget at 11 am all eyes will be on these key economic numbers-

1. GDP: India‘s real GDP is expected to grow between 6.5-7% in FY25

2. Inflation: Inflation has a worry for the economy, especially food prices. For FY25, projections see inflation below the 5% mark

3. Fiscal Deficit: The country’s economic policies have been continuously taking up a prudent stance. The Interim Budget has pegged the Deficit at 5.1% for FY25.

Experts from the education sector urging for enhanced budget for the higher education sector to better address funding requirements, faculty needs in schooling, skilling, and higher education.

“Tax exemptions should be given to businesses to incentivise growth of practical and experiential programmes to implement NEP 2020 for industry-academia collaborations,” Pravesh Dudani, Chancellor and Founder, Medhavi Skill University, said.

The final countdown for the Budget is underway. The markets have given an indication that the indices will kickstart the day’s trade on a positive note and will trade higher on positive announcements from the Finance Minister.

As Budget 2024 approaches on July 23, corporate India, including the automotive sector, has prepared its wishlist. The industry is keen on finding ways to reduce costs in manufacturing and logistics. Experts from the sector outline their expectations for the upcoming budget.

The automotive industry anticipates a boost in the adoption of electric vehicles and a shift towards greener mobility solutions. Budget 2023 emphasized manufacturing Green Hydrogen, aiming for an annual capacity of 5 MMT by 2023.

Additionally, there were changes in customs duties affecting the production of Lithium-ion cells for vehicles. Last year, the duty on compounded rubber increased from 10 percent to 25 percent, reflecting ongoing adjustments in the sector.

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Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024-25 today. Industry leaders are anticipating new policy reforms, price relaxation, GST reductions, and the announcement of major schemes.

In April, Union Minister Mansukh Mandaviya announced that there would be no price increase for essential medicines this fiscal year due to minimal growth in wholesale price-based inflation. The upcoming Union Budget 2024 will be closely watched for its impact on medicine prices and healthcare costs.

Dr. Sujit Paul, Group CEO of Zota Healthcare Ltd., informed Financial Express.com that various factors impacting the pharmaceutical sector will inevitably lead to an increase in prescription medication prices.

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Finance Minister Nirmala Sitharaman is set to announce the Union Budget 2024-25 on July 23. Leaders from the diagnostics industry are hopeful for new strategic initiatives and increased investments.

Dhiraj Jain, Founder & Chairman of Redcliffe Labs, emphasized the importance of the upcoming budget in transforming the healthcare sector, focusing on accessibility and affordability

Finance Minister Nirmala Sitharaman is set to announce the Union Budget 2024-25 on July 23. Leaders from the diagnostics industry are hopeful for new strategic initiatives and increased investments.

Dhiraj Jain, Founder & Chairman of Redcliffe Labs, emphasized the importance of the upcoming budget in transforming the healthcare sector, focusing on accessibility and affordability

Ahead of the Union budget on July 23, the All India Federation of Tax Practitioners (AIFTP) has called for a substantial reduction in personal income tax for citizens. On Sunday, AIFTP President Narayan Jain advocated for raising the exemption limit to Rs 5 lakh, aiming to alleviate the tax burden on the populace, according to a PTI report. In his memorandum to the Finance Minister, Jain proposed a 10% tax rate for incomes ranging from Rs 5 lakh to Rs 10 lakh, a 20% tax rate for incomes from Rs 10 lakh to Rs 20 lakh, and a 25% tax rate for incomes exceeding Rs 20 lakh.

Rajat Agrawal, CEO of Barista Coffee, highlighted the potential impact of reducing individual income tax rates, particularly for middle-income earners. He believes that such a move could significantly increase disposable incomes, thereby boosting consumer spending. Agrawal emphasized that higher disposable incomes would likely benefit businesses like Barista Coffee by potentially increasing customer spending on discretionary items such as coffee and dining experiences. This anticipated rise in consumer demand could contribute to overall economic growth, as businesses across various sectors stand to benefit from increased consumer confidence and purchasing power. Agrawal’s perspective underscores the potential ripple effects of tax policy changes on both individual finances and the broader economy.

India is ramping up its support for defence startups through initiatives like Innovation for Defence Excellence (iDEX) and the Technology Development Fund (TDF), alongside simplified ‘Make’ guidelines. Finance Minister Nirmala Sitharaman’s recent announcement of a new scheme to enhance deep-tech capabilities for defence marks a significant step forward.

The 2023–24 budget’s inclusion of start-up-friendly measures demonstrated a clear understanding of the unique challenges faced by these enterprises, with the government showing commitment to providing necessary support. Notable provisions included financial aid to help startups recover from setbacks, which eased their burdens and allowed them to concentrate on their core activities. Similar support is anticipated in the upcoming budget.

These efforts underscore a commitment to increasing research and development (R&D) funding. The allocation of 25 percent of defence R&D funds to the private sector has been crucial, allowing startups to engage in both small and large-scale projects. Captain Nikunj Parashar, Co-Founder & CEO of Sagar Defence Engineering Pvt Ltd, emphasizes that these measures are vital for fostering innovation and growth in the defence sector.

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024-25 on July 23. Climate change remains a pressing threat to human health, with the World Health Organization (WHO) warning that it exacerbates humanitarian emergencies such as heatwaves, wildfires, floods, tropical storms, and hurricanes, which are becoming more frequent and severe.

Research indicates that 3.6 billion people already live in areas highly vulnerable to climate change. Between 2030 and 2050, climate change is projected to cause approximately 250,000 additional deaths annually due to undernutrition, malaria, diarrhea, and heat stress alone.

The WHO estimates that the direct damage costs to health, not including those related to health-determining sectors like agriculture and water sanitation, could reach between US$ 2–4 billion per year by 2030.

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Finance Minister Nirmala Sitharaman is set to present her seventh budget in Parliament on July 23, with significant anticipation and expectations from various sectors. Smartphone buyers, in particular, are keen to see if the budget will make phones more affordable.

Last year, the government reduced import taxes on critical components such as camera lenses to boost mobile phone manufacturing in India. Additionally, the Finance Minister extended a reduced tax rate on lithium-ion batteries, essential for both phones and electric vehicles. This policy adjustment aims to lower manufacturing costs for companies producing phones domestically.

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The rural economy‘s green shoots and a modest cyclical recovery have been the focus of recent economic discussions. The pressing question is whether this recovery is sustainable or just a temporary improvement. This concern arises because the post-Covid recovery has been primarily K-shaped. While factors like increased FMCG sales volume and a 10% rise in Kharif sowing since late June offer hope, mixed auto sales and lower agricultural exports raise concerns.

Attention is now turning to the upcoming Budget. The key questions are about the extent of allocations and whether Finance Minister Nirmala Sitharaman will boost the rural economy with higher allocations and increased public capital expenditure to support a more significant cyclical recovery.

Tanvee Gupta Jain, Chief India Economist at UBS, expects a cyclical recovery in rural consumption in FY25, driven largely by higher allocations for social sector schemes in the upcoming Union Budget, along with states’ budget commitments and election promises. She also anticipates continued double-digit growth in public capital expenditure to support rural jobs, normal monsoons, and the likely removal of export bans on agricultural commodities. However, she cautions that the recovery in household consumption (in real terms) is expected to remain below trend at 5-6% year-on-year in FY25/26.

The debate over including hybrid cars under the Faster Adoption and Manufacturing of Electric Vehicles (FAME III) policy has gained momentum. Earlier this year, Union Minister for Road Transport and Highways, Nitin Gadkari, announced plans to propose a reduction of GST on hybrid cars to five percent and on flex-fuel engines to twelve percent. This proposal has influenced Uttar Pradesh, the country’s second-largest state, to waive the registration tax on hybrid vehicles under FAME II. So, what can hybrid car manufacturers expect from the upcoming 2024 Budget? Here, we explore the potential benefits for hybrid cars and their impact on the electric vehicles segment.

The Uttar Pradesh government’s decision to scrap the registration tax on hybrid vehicles has significantly impacted the automotive industry. Leading hybrid vehicle manufacturers such as Toyota and Maruti Suzuki have welcomed this move, while Hyundai, Tata Motors, and Mahindra have expressed concerns. The UP Government clarified that only vehicles priced under ₹20 lakh and covered under the FAME II scheme are eligible for this waiver. This includes models like the Toyota Hyryder, Maruti Suzuki Grand Vitara, and Honda City Hybrid.

The Finance Ministry is considering a proposal to reduce the GST on hybrid vehicles to 5% and eliminate the additional 15% cess currently applied to the 28% GST. Currently, hybrid vehicles are taxed at 43 percent GST, while internal combustion engine vehicles are taxed at 48 percent.

The aviation sector has experienced remarkable growth, with the number of airports doubling and the introduction of numerous new routes. Nishant Pittie, CEO and Co-Founder of EaseMyTrip, emphasized the sector’s potential for further expansion with the development of new airports and the enhancement of existing ones. However, he noted that the interim budget for 2024-25 saw a reduction in funds allocated to the Ministry of Civil Aviation and the UDAN scheme.

Over the past decade, the aviation industry has seen significant advancements. The number of airports has increased to 149, and 517 new routes now serve 1.3 crore passengers. Indian carriers have ordered over 1,000 new aircraft. The sector is poised for rapid growth with planned expansions of existing airports and the development of new ones. Key focus areas for this fiscal year’s budget are expected to include infrastructural enhancements, improved connectivity, and sustainability initiatives. There is an anticipation for increased budget allocation for airport expansions and new air routes, along with policies aimed at addressing challenges such as regulatory frameworks and operational costs.

The anticipation around Budget 2024 is palpable, especially in the travel and hospitality sectors. With the government’s ongoing focus on enhancing tourism, stakeholders are optimistic about policies that could make travel more affordable. Here’s an in-depth look at the expectations and insights from industry leaders.

The hospitality sector is keenly observing whether Budget 2024 will impact hotel room tariffs. Keith Menon, Hotelier and Co-owner of Circle by Hermiting Hospitality, noted that while infrastructure improvements and loans for tourist spots could draw more tourists, they might also increase hotel costs. “However, the budget’s support for restaurants and food businesses could help hotels manage their expenses better and maintain stable prices,” he said.

Dr. Omkaar Hari Maali, a leading import-export coach and founder of Udyami Maharashtra, advocates for the upcoming budget to allocate funds for training new exporters and providing them with financial support. This would help them secure the capital needed to start their businesses. He also suggests that India should diversify its export portfolio to include products like toys and processed foods, aiming to establish itself as a global hub for these industries.

“The budget should allocate funds for training individuals in the export-import industry, targeting new exporters and providing them with necessary financial options. This would empower new exporters to secure the capital needed to launch their businesses. Additionally, India should focus on diversifying its export portfolio to include products like toys and processed foods, positioning itself as a global hub for these industries,” said Dr Omkaar Hari Maali, Leading Import Export Coach & Founder – Udyami Maharashtra.

The Union Budget 2024-25 aims to improve India‘s judicial system by enhancing infrastructure, accelerating judicial appointments, and improving legal aid services. Key focuses include adopting technological advancements, promoting alternative dispute resolution mechanisms, and investing in capacity building and legal reforms. “The Union Budget 2024-25 is expected to focus on enhancing judiciary infrastructure, speeding up judicial appointments, and improving legal aid services. Emphasis will be placed on technological advancements, alternative dispute-resolution mechanisms, capacity building, and legal reforms. Increased funding for legal awareness campaigns and support for victims of crimes will also be prioritized. These measures aim to strengthen India’s judicial framework, supporting its ambition of becoming a developed nation by 2047,” said Akshat Khetan founder of AU Corporate and Legal Advisory Services Limited (AUCL).

Pavan Ranga, CEO of Rangsons Aerospace, shares his vision for the future of India’s aerospace and defence sectors ahead of the presentation of Budget 2024. He underscores the urgent need to reduce reliance on the public sector for manufacturing and R&D, which has impeded progress.

In an exclusive interview with FinancialExpress.com, Ranga highlights the importance of incentivizing private sector participation through stable and supportive policies. He advocates for a substantial increase in research and development funding, suggesting it should be raised to 2 percent of GDP to drive innovation and enhance global competitiveness. Additionally, Ranga calls for the privatization of certain Defence Research and Development Organisation (DRDO) laboratories to improve efficiency. He also emphasizes the need for technology transfer in new aircraft deals. These steps, he believes, are vital for India to realize its ‘Make in India’ goals and become a global leader in aerospace.

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PwC India has suggested that the government prolong the 15% concessional corporate tax rate for new manufacturing units, which concluded in FY24, for an additional five years. This recommendation aims to stimulate domestic manufacturing and reduce reliance on imports. PwC partners highlighted this significant industry request during a press briefing on Wednesday, urging the Centre to incorporate it in the forthcoming Budget.

FE previously reported that the government is considering a new scheme for a concessional corporate tax rate for new manufacturing units in the Budget, aimed at sustaining the private capital expenditure cycle. This new scheme would likely resemble the former one, which provided a 15% tax rate, compared to the standard 22%, and ended on March 31, 2024.

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With Budget 2024 imminent, leaders across diverse sectors are expressing their hopes for policies that could significantly impact the nation’s economic future. From finance and real estate to education and technology, stakeholders are advocating for reforms designed to drive India‘s growth forward.

In the financial sector, there is a significant drive to tackle disparities and improve operational efficiency. Akshay Sarma, Chief Financial Officer of Axio, emphasizes several critical areas requiring focus.

As the upcoming budget approaches, addressing challenges in the finance sector becomes crucial. Akshay Sarma, CFO of Axio, stresses the need to resolve disparities in tax treatment between banks and NBFCs. He suggests that providing TDS exemption under Section 194A for NBFCs would alleviate liquidity pressures. Additionally, allowing NBFCs to carry forward accrued losses during amalgamations or demergers, similar to banks under Section 72A, would support consolidation efforts in the sector.

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With the Union Budget 2024 approaching, the education sector is advocating for a significant boost in funding. Experts argue that if India is to achieve its goal of becoming a developed economy within the next two decades, in line with Prime Minister Narendra Modi’s vision of ‘Viksit Bharat,’ prioritizing education is essential. They emphasize that the proposed increase in education funding from 2.9% to 6% of the budget is more than a financial commitment; it represents a strategic initiative to equip the nation’s youth with the skills and knowledge necessary for future leadership and prosperity. Manish Rastogi, Whole-Time Director and CEO of Zee Learn Ltd, highlights that by investing in education, India is laying the groundwork for a more innovative and globally competitive future.

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