THE TIMES OF INDIA | Jul 21, 2024, 18:47:29 IST
Budget 2024 expectations live: On July 23, 2024, Finance Minister Nirmala Sitharaman will present the Union Budget 2024 in the Parliament. This will be the first Budget of the newly elected NDA government led by PM Narendra Modi. Given the less than expected mandate for the NDA in Lok Sabha polls 2024, the Union Budget 2024 is likely to strike a balance between reforms and populism. Like every year the common man, middle class and salaried individuals have high expectations from Budget 2024 to provide income tax relief and leave more cash in hand. Experts expect changes in the new income tax regime to make it more attractive for individual taxpayers. FM Sitharaman is likely to stick to the fiscal consolidation path with an aim to contain the fiscal deficit. However, Modi 3.0 government is also anticipated to continue with its record capex push with a focus on infrastructure. Track TOI’s live coverage to know the top expectations from Budget 2024:
Budget 2024 expectations Live: Exploring how the new administration aims to streamline the tax filing process
Income Tax Expectations Budget 2024: There are various Income Tax Return (ITR) Forms tailored for different taxpayer scenarios. Selecting the appropriate tax return filing Form is important to ensure better compliance. Currently, the choice of the relevant Form is left to the taxpayer. It may be good to introduce a feature of recommending the relevant tax return Form based on specific questions posed in the portal.
Union Budget 2024 expectations Live: ‘Emphasis on R&D needed to boost India’s tech development ecosystem’
Ahead of the budget 2024, tech company executives have voiced their expectations, seeking a boost in India’s technology development ecosystem. According to Manoj Nair, head of global delivery centres at Fujitsu, India must take step to bolster digital literacy, emphasis on R&D and establish centres of excellence for innovation.
Union Budget 2024 expectations Live: New business models for rural communities essential
“The rural economy in India employs almost 68% of the workforce while contributing less than half of the country’s GDP. Characterized by high labor force participation, predominantly in agriculture and informal sectors, there is a risk of increasing dependency on urban centers if not provided appropriate economic stimulus. Investments in rural infrastructure, agriculture, and non-farm sectors have driven impressive growth. Initiatives like rural digitization, financial inclusion, community institutions, and scale-appropriate technology are critical for revitalizing the rural economy. New business models that allow rural communities to add value and reimagine districts as economic corridors will be essential. Focusing on creating rural areas as champions of circularity holds significant potential, as overall sustainability becomes a key priority. Given that 60% of the rural economy is concentrated in six states – Uttar Pradesh, Bihar, Maharashtra, West Bengal, Madhya Pradesh, and Rajasthan, it will be crucial to adopt a localized approach that addresses specific challenges while developing the rural investment strategy,” says Amit Vatsyayan, Leader GPS-Agriculture, Livelihood, Social and Skills, EY India.
Budget 2024 expectations Live: What the Indian gaming industry looks forward to
Rajan Navani, Chairman and President of the Indian Digital Gaming Society backed by the CII, emphasised the sector’s potential: “The esports and video gaming sector in India is brimming with potential. We have a massive pool of talented gamers, but to truly compete globally, we need targeted support in the upcoming budget. This includes tax breaks for studios creating original esports and video gaming content, investment in infrastructure to foster development of high-quality games, and initiatives to cultivate a skilled esports workforce.”
Budget 2024 expectations Live: Crypto community seeks reduction of tax deductions on transfer of digital assets
A key proposal of the crypto community is to decrease the Tax Deducted at Source (TDS) rate on Virtual Digital Asset (VDA) transfers under section 194S from 1% to 0.01%. The current TDA rate, the report states, acts as a deterrent for investors, leading to reduced market liquidity and participation. Reducing this rate the crypto currency community says can stimulate more transactions and promote a more robust trading environment.
Union Budget 2024 expectations Live: Facilitate women’s entrepreneurship in India
“Women entrepreneurs are a powerful engine for economic growth and job creation in India. The country has excelled in organizing women into self-help groups (SHGs) that have fostered a strong culture of saving and community-led lending. With over 10 million SHGs established, collectively holding an estimated 7000 Crore in savings and maintaining a remarkably low Non-Performing Asset (NPA) rate of just 2.01%, there is a compelling case for investing in helping women become entrepreneurs. Women-owned micro, small, and medium enterprises (MSMEs) in India have demonstrated impressive results, hiring 11% more women employees compared to male-owned MSMEs and creating one-third of all new jobs. They have also reported a 12% rise in monthly revenue and a 19% increase in monthly net income, indicating better cost optimization and income growth. To facilitate women’s entrepreneurship in India, it is essential to invest in creating a robust ecosystem that provides access to critical business services such as finance, markets, skills, networks, and mentoring. Appropriate technology-enabled interventions will be crucial to accelerate women’s graduation to entrepreneurs at scale,” says Amit Vatsyayan, Leader GPS-Agriculture, Livelihood, Social and Skills, EY India.
Union Budget 2024 expectations Live: Provide fillip to agriculture by laying emphasis on four Vs
Budget 2024 expectations for agriculture: The government can provide a fillip to this sector by laying emphasis on four Vs – volatility, value, vital infrastructure, and vulnerability.
Budget 2024 pharma sector expectations: Life sciences sector eyes R&D boost, tax incentives, manufacturing support
The pharmaceutical industry has some key expectations from the Union Budget 2024, which will provide further impetus to this sunrise sector and contribute to the nation’s future.
Budget 2024 expectations Live: ‘Consult with leading voices in sustainable tourism’
Amit Jaipuria, Founder and CEO of Postcard Travel Club, has shared his expectations from the upcoming budget, emphasizing the importance of making sustainable tourism a national priority. He stated, “The government’s intention to make sustainable tourism a national priority for revenue and employment in its third term is a great signal for the travel industry. Policy incentives for making tourism more sustainable should be put in place, and the use of storytelling to showcase regions and cultures should be further emphasized.”
Union Budget 2024 expectations Live: Auto industry seeks support for its growing ambitions
Budget 2024 auto sector expectations: As the country eagerly awaits Union Budget 2024-25, the first by the new NDA government led by Prime Minister Narendra Modi, the auto industry seeks continued support. In the past, the government has provided impetus to the industry through multiple incentives schemes like Faster Adoption and Manufacturing of Electric Vehicles (FAME), Production-Linked Incentive (PLI) Scheme, and more.
Income Tax Expectations Budget 2024: What are the ideal new tax regime slabs, rates for middle class, salaried?
What can salaried taxpayers expect from Budget 2024 for the new income tax regime? Times of India Online did an exclusive survey of top personal tax experts. Tax experts are divided on the ideal tax income tax slabs and income tax rates under the new tax regime. However, most agree that the 30% tax slab above an income of Rs 15 lakh is still steep and needs to be implemented at incomes of at least above Rs 20 lakh.
Chander Talreja, Partner, Vialto Partners tells TOI, “This year, the government may provide relief to middle income level individuals by tweaking the slab rates further and introducing additional slabs for income ranging between Rs 15 lakh and Rs 20 lakh.”
Union Budget 2024 expectations Live: Energy sector anticipates pivotal announcements
As the Union Budget of India 2024 approaches, the energy sector anticipates pivotal announcements to bolster growth and sustainability.
“Building on the interim budget of February 2024, which allocated significant funds for solar and green energy projects and Viability Gap Funding for wind energy, the sector hopes for further enhancements. Policy support for the green hydrogen mission to address infrastructure, storage, and transportation related challenges would be important to establish India as a global hub for green hydrogen production. On GST front, important areas to consider would be reduction in GST on hydrogen to foster greater adoption and inclusion of natural gas within the GST framework. To bolster the ambitious rooftop solarization project, DISCOMs may receive financial thrust to develop a country-wide infrastructure for transmission and metering. With regard to e-mobility, while a call to strengthen e-vehicle ecosystem was already made as part of interim budget, potential unveiling of FAME III with a higher budget allocation than its preceding versions holds the potential to impact the Indian EV landscape profoundly. Additionally, policies promoting energy storage solutions and smart grid technologies could provide a much-needed impetus. To address energy security concerns, the budget might propose measures to boost domestic oil and gas exploration. These policy interventions, coupled with initiation of skill development programs to prepare the Indian workforce for energy transition would go a long way in realising India’s objective of achieving Net Zero emissions by 2070,” Raju Kumar, Energy Tax Leader, EY India tells TOI.
Union Budget 2024 expectations Live: Rationalise dividend taxation for private companies
“For families, a dividend from business is merely a transfer of their own hard-earned income from one pocket to the other but bears double taxation. While LLP offers pass through tax status, availability of credit and other commercial aspects make private limited companies a more attractive form of doing business. The Government may consider rationalising dividend taxation for private companies, which are 100% family-owned businesses.
It is also imperative to have a regime that fosters the growth of family offices and their entire ecosystem in India. In addition to investing in India, several family offices are scouting for investment opportunities outside India. The Family Investment Fund regime in IFSC can help family offices with overseas investment plans. Addressing ambiguities and enabling the regime could prove to be a game-changer for the industry which could be considered by the Government,” Falguni Shah, Partner and Entrepreneurial & Private Business Leader, PwC tells TOI.
Budget 2024 expectations Live: ‘We anticipate it to sustain momentum with a focus on continued infrastructure investment’
Sunjae Sharma, Managing Director for India and Southwest Asia at Hyatt, has shared his insights and expectations from the upcoming budget, emphasizing the need for continued support and strategic investments in the tourism and hospitality industry. Sharma reflected on the progress made in the previous year and highlighted key areas that require attention in the forthcoming budget.
Union Budget 2024 expectations Live: Reduction in GST rates for LED TVs larger than 32 inches expected
Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd (SPPL), has sought a reduction in Goods and Services Tax (GST) for LED TVs larger than 32 inches. Marwah, said that the reduction in GST will help strengthen its global economic standing.
Union Budget 2024 expectations Live: What are the expectations of insurance sector?
Amit Roy, Partner & Leader – Insurance and Allied Businesses, PwC India lists key areas FM Sitharaman should focus on:
* Inclusion of financial literacy, risk awareness and insurance coverage in school curriculum.
* Passage of proposed insurance amendment act to be expedited.
Budget 2024 expectations Live: Solar industry eagerly anticipates pivotal measures
“As we approach the Union Budget, the solar industry eagerly anticipates pivotal measures to accelerate India’s renewable energy goals. Key priorities include enhancing residential solar adoption with proposed personal income tax benefits up to 3 lakhs. This can be considered instead of current subsidy of Rs.78,000. For commercial and industrial (C&I) sectors, increasing depreciation benefits to 60-80% from the current 40% will incentivize substantial investments in solar installations, bolstering sustainability efforts across businesses.
The removal of anti-dumping duties on raw materials for solar modules is crucial to enhancing manufacturing competitiveness and reducing dependency on imports. Additionally, a proposed 7-year tax holiday for investments in PV module or solar cell production will stimulate domestic manufacturing capabilities, fostering job creation and economic growth.
These strategic measures not only strengthen India’s position in renewable energy but also pave the way for a sustainable and resilient energy future. They underscore our commitment to innovation and sustainability, ensuring a greener and more prosperous tomorrow for all,” says N.P Ramesh, COO and Co-Founder of Orb Energy.
Budget 2024 expectations Live: PMJJBY and PMSBY limit of 2 lakhs should be increased
Amit Roy, Partner & Leader – Insurance and Allied Businesses, PwC India lists his biggest expectations from Union Budget 2024:
* PMJJBY and PMSBY limit of 2 lakhs should be increased to 5 lakhs. (In view of inflationary effect)
* Rationalisation/Reduction of GST to make insurance coverage more affordable to increase penetration. (Across all insurance products)
* Removal of GST from pure protection products and health insurance products.
* Tax incentive for contributions to pension schemes should be Rs. 10,000/month to promote healthy coverage for living long.
Budget 2024 expectations Live: More measures aimed at enhancing STEM education expected
“Looking ahead to the final budget for 2024, we anticipate more measures aimed at enhancing STEM education, expanding digital infrastructure in rural areas, and raising educational standards to meet global benchmarks. Building on progress from the interim budget, which focused on boosting STEM education and digital literacy, the upcoming budget aims to further reduce educational disparities with targeted programs for underrepresented groups.
The interim budget made significant strides by emphasizing gender inclusivity in STEM education, where 43% of enrolled students were women, showcasing progress in educational equity. Notable changes included a proposed reduction in GST rates on educational goods and services from 18% to 5%, aimed at making education more affordable. Additionally, the selection of 14,500 schools for upgrades under the Education Policy 2020 showcased a commitment to modernizing educational infrastructure.
It also allocated substantial funds for digital teaching resources, ICT upgrades, and initiatives integrating advanced technologies like AI and VR into school curricula. These efforts set a foundation for anticipated developments in the sector.
The upcoming National Education Policy is likely to prioritise digital literacy and effective edtech utilisation, with a focus on expanding digital infrastructure in rural communities to bridge educational disparities. Public-private partnerships will continue to play a crucial role in enriching educational experiences through enhanced collaborations and incentives for ed-tech firms. Strategic investments in R&D, state-of-the-art laboratories, and ICT infrastructure upgrades will be pivotal in preparing India’s youth for future challenges in a technology-driven world.
As India continues to progress towards becoming a knowledge-based economy, these strategic investments in education will be pivotal in shaping a skilled and competitive workforce capable of driving sustainable growth and development,” says Anurag Gupta, Co-Founders of STEMROBO.
Union Budget 2024 expectations Live: Push for labour intensive manufacturing through fiscal incentives
“Family businesses, most of which fall in the MSME segment, can play an important role in developing rural economies and job creation. Keeping this in mind, the government may push for labour intensive manufacturing through fiscal incentives, particularly for sectors like textiles, food processing, small engineering goods, leather goods, etc. which will greatly benefit Family businesses in Tier II cities.
Family businesses need to adopt digitisation and other progressive technologies including Gen AI to reach their full potential and become competitive. Specific funding for such digitisation initiatives can also be considered. Similarly, the Government may also offer tax sops to family businesses investing in staff training and upskilling to promote ongoing learning and be future ready,” Falguni Shah, Partner and Entrepreneurial & Private Business Leader, PwC India tells TOI.
Union Budget 2024 expectations Live: Rationalise complex capital gains tax structure
“The Indian asset management industry has witnessed spectacular growth over the last decade. Factors like India’s economic growth, rising incomes, increased financial literacy, technology adoption, and increased foreign interest have collectively contributed to robust development across both the traditional as well as alternative asset classes. The tax legislation must therefore evolve to support this dynamic environment.
Tejas Desai, Partner & Leader, Wealth & Asset Management – Tax, EY lists his top 3 expectations from the upcoming Union Budget for this sector to TOI:
* Rationalisation of what is currently a fairly complex capital gains tax structure in India with varying tax rates (across taxpayers and asset classes), differing holding periods for short term and long term, differing computation mechanisms. The Government had set up a committee in September 2022 headed by Shri M Damodaran to undertake a comprehensive study of the existing regime from a regulatory policy and taxation standpoint and to facilitate ease of investing. The Committee has since submitted the Report to the Government, though it remains confidential. Implementation of the recommendations will mean a delicate balancing act for the Government, but the overarching objectives should be simplicity and providing uniformity in taxation to ensure that asset allocation decisions are driven by risk reward considerations rather than taxation.
* India’s GIFT City has made rapid strides over the last few years positioning itself as an important gateway for both inbound and outbound investments. Establishing a specific code for taxation of outbound funds from India’s GIFT City is the need of the hour to level the playing field with global financial hubs like Singapore, thereby encouraging more investments through this important gateway.
* A re-look at some of the stifling conditions of section 9A of the Income-tax Act would go a long way in onshoring fund management activities and fostering growth in the wider financial ecosystem. This will benefit both Indian as well as foreign owned asset managers who have capability to manage foreign pools of capital.
These measures are crucial for fostering a favorable environment for the continued growth and development of India’s asset management industry.”
