India Budget 2023 Expectations Latest Updates (Jan 31): Finance Minister Nirmala Sitharaman will present her fifth Budget Speech tomorrow (February 1). She is expected to announce tax relief measures for salaried taxpayers, Middle Class and Senior Citizens while balancing growth and fiscal deficit. Meanwhile, the Budget Session of the Parliament begins today. The Economic Survey 2023 will also be tabled in Parliament today.
As momentum builds for Narendra Modi Government’s last full budget before the 2024 General Elections, track this space for Latest News Updates on Budget 2023 Expectations on January 31.
Also Read: Budget 2023 Income Tax Changes Live Updates
Several changes on income tax front are expected from Budget 2023. Track live updates here
Sharing his Budget 2023 expectations, Ankit Jain, Partner at Ved Jain and Associates, says: “Tomorrow is an important day for the Government. They bring the first budget where the pangs of COVID look behind us. The challenges of the global recession loom, but the Indian growth story is looking to grow strong. The Government would aim to bring in policies to make this growth story a reality. The middle class and salaried look towards some tax relief. We are hoping that some benefits will be available for them.”
Pallav Pradyumn Narang, Partner at CNK says, “India remains the shining spot in terms of growth as the entire world looks at recessionary trends. In this context the budget speech of 2023 will be an important moment to ensure that the India story continues unabated. This becomes even more critical when you realise that this is possibly the last budget before the elections of 2024. The challenge will be balancing populist measures with hard solutions that will keep the ship afloat.”
Sumit Chhazed, CEO and Co-Founder, OTO, says: “The Indian two-wheeler EV market is growing at a much faster pace with 250 per cent y-o-y growth witnessed in 2022. But, the EV ecosystem is in its nascent stage, the incentives and policies put forward in the Union budget 2022 were successful to some extent, yet needed some amendments & additions that we remain positive in the upcoming Union Budget 2023- 24.”
“To start with, the FAME II policies would expire by March 31st 2024, extension of the validity of the policy must to be made conversion based instead of setting a deadline. On taxation, the GST on EV spare parts is said to be levied at 5%, yet, lack of clarity has led the industry to end up paying 28%, hence a uniformity on the GST of spare parts is expected. PLI scheme to promote electric mobility adoption favours major corporates, startups and MSMEs remain ruled out a level playing field for the category needs to be ensured.”
Nidhi Bhasin, CEO, Nasscom Foundation says, “As India stands poised to reach its target of hitting the $5 trillion mark, there is still a sizable quantum of work required to especially bridge the digital divide prevalent in the country. By facilitating deeper penetration of digital literacy and tech-based skilling, the government can ensure greater involvement of women and youth from marginalized and underserved communities to contribute to the economic growth trajectory of India. Additionally, implementing R&D work and promoting collaboration between the government and the social sector will help achieve India’s sustainability goals by 2030. In the year of India's G20 Presidency, prioritizing women-led entrepreneurial development and building a strong ecosystem for nurturing the youth can help accelerate India to become the world's third-largest economy.”
Aji Nair, Chief Advisor and Consultant at Mirah Hospitality, says, “We have been requesting to get us the Input Tax Credit since the time the GST was introduced in the country. More than 95% of Indian restaurants are operating from Leased or rented premises. Right away from the construction period and throughout operations, we have been paying almost 18% of GST on Rentals and other purchases. This ranges from 18% to 28% for various purchases and activities. While all other industries are enjoying the benefits of ITC, only the hospitality industry is kept excluded from this facility. So, we do expect the Input Tax credit facilities from Construction time throughout operations to be allowed to the industry or else, the GST for our purchases for Projects and Rent should be brought down to the 5% category. This will help us recover at least a minor part of the losses incurred by us during the pandemic, over the next few years. Reduced GST on the construction of restaurants or benefits of ITC, will also invite more investment in this segment which will contribute significantly to the Indian economy and will also help build more employment opportunities in the country.”
Tejas Khoday, co-founder and CEO of FYERS (a new-age broking platform) says: “The 2023 Union Budget is expected to bring positive changes to the capital markets in India. The budget is expected to have provisions to rationalize tax on capital gains, reintroduce futures and options in agricultural commodities, and enhance tax rebates for Securities Transaction Tax (STT) and Commodity Transaction Tax (CTT). These initiatives can increase retail participation and increase the collection of STT/CTT for the government.”
“Additionally, the budget may increase the limit for deductions under section 80C of the Income Tax Act, 1961 to encourage savings and drive the growth of capital markets. Reintroduction of F&O in agricultural commodities is highly anticipated which will help farmers hedge their price risk and prevent loss of surplus production. In the long term, derivatives are believed to be more beneficial than subsidies like Minimum Support Prices (MSPs) for farmers by insulating them against unexpected price changes,” he adds
Krishna Kumar, Co-founder, Isthara Co-Living, says, the impact of the pandemic will not completely fade away from the real estate sector until the benefits of an 'industry' are extended to the entire sector. There is a dire need to drive demand into the real estate sector, and we believe that more tax sops for homebuyers, lower interest rates on home loans, and affordable EMIs can play a key role in enabling the same. We are also hopeful that the budget introduces provisions that can reduce tax implications on consumers and boost housing absorption.”
“Currently, the regulations that co-living operators are required to follow are in accordance with the hospitality sector. We hope that the co-living sector, which is providing a safe and secure housing solution for migrating students and workforce, gets accredited as a residential service provider instead of a commercial service provider. We also look forward to policy measures that offer additional incentives for developers to build rental housing for co-living purposes, so that more supply can come into the end housing segment,” he adds.
Finance MInister Nirmala Sitharaman will present her fifth Budget Speech on Wednesday (11 am). “Union Finance Minister @nsitharaman to present the Union Budget 2023-24 in Parliament,” tweets PIB.
LIVE at 11 am on 1st February (Tomorrow)— PIB India (@PIB_India) January 31, 2023
Union Finance Minister @nsitharaman to present the Union Budget 2023-24 in Parliament
Watch on #pib‘s
Sumanpreet Bhatia, VP, Human Resources at Exotel says, “From the standpoint of an employee's tax situation, a deduction for mortgage interest should be made at actuals. The benefit is only available up to Rs 2 lakh, and the EMIs are very high. Employers should offer additional incentives to lower-paid employees to encourage saving. The deduction limit under Section 80C of the Income-tax Act, 1961, should be increased from the existing Rs 1.5 lakh to Rs 2.5 lakh. The Rs 25,000 cap on medical insurance and spending should be lifted and updated to reflect current costs, as medical costs are rather expensive. The level of surcharge that is now in place for employees is quite significant. Since more employees are working internationally, this must be reduced. When going internationally, LTA must be taken into account. Salaried employees are not permitted to deduct company-related expenses in the same way that business owners are. This must be introduced.”
The International Monetary Fund (IMF) is expecting a slowdown in the Indian economy in the next fiscal year. IMF has revised its growth forecast for the Indian Economy to 6.1% from 6.8% during the current fiscal ending March 31. As per IMF’s World Economic Outlook, the global growth is projected to fall from an estimated 3.4 percent in 2022 to 2.9 percent in 2023, then rise to 3.1 percent in 2024. Read full details
Bikas Gupta, Chairman and managing director of Miles Education, says Budget 2023 should have a strong focus on education, particularly in the areas of implementing the National Education Policy and reimagining university education. This includes increased funding for higher education institutions and a reconsideration of the 18% GST rate currently imposed on educational and training services, which includes PG certifications and executive programs from any institution, private or public.
“Such a high GST rate acts as an entry barrier for many individuals to upskill themselves, thereby hindering the goal of building a skilled and competitive workforce, and driving economic growth in the country. An upskilled workforce will not only earn more but also spend more, ultimately paying higher taxes and giving better returns in the long run. Therefore, high taxes on upskilling programs seem counterproductive, becoming an unnecessary hurdle in the way of India becoming an economic powerhouse. Thus, the government should take the necessary steps to make education more accessible and affordable for all,” he says.
The demand for affordable housing has declined, resulting in a fall in affordable housing supply in the top 7 cities as developers are now more focussed on mid and premium housing priced between Rs 40 lakh and Rs 1.5 crore. Budget 2023 can make affordable housing attractive again by revising affordable housing bandwidths. Read Full Story
Stock market participants are waiting for cues from the Economic Survey to be tabled in the Parliament today. On Monday, the BSE Sensex rose 169.51 pts, closing at 59,500.41 while NSE Nifty 50 advanced 44.60 pts to 17,648.95. Read Market Live Updates
Akshay Mehrotra, Co-Founder and CEO of Fibe, a consumer lending app, says, “It is expected that there will be a change in tax slabs or in terms of tax-related relief. As the working population is India's primary source of tax revenue, they are the target of the most expected regulatory changes from the Union Budget 2023. As it is expected that in the upcoming budget, some relaxations will be provided to the personal loan borrowers, we look forward to 35% of the Indian lending market as a lender. The salaried group also anticipates long-term benefits like healthcare, higher education, superannuation, and post-retirement benefits from the government in the upcoming budget.”
Sharing his Budget expectations, Kunal Jain, Senior Consultant, Alpha Capital says, “My expectation from budget for Senior citizens is to create similar product like RBI Floating Rate Savings Bonds 2020 where tax-free annual income can be provided. In past many years, they have experienced lower interest rates and higher inflation. Currently, interest income from all products is added to taxable income and taxed at marginal rates except from PPF and few others. We should reduce their tax burden as much as possible. This new investment product can have maximum investment limit like Rs 15 Lakhs or more. It will provide long-term savings to government for infra projects and manufacturing projects. However, it will reduce some tax receipts for the government also.”
The Budget Session of the Parliament will begin today with the maiden address of President Droupadi Murmu to the joint sitting of the Lok Sabha and Rajya Sabha. After the President’s address, the Economic Survey will be tabled. Here's all you need to know about the Budget Session and Why It's Important