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Budget 2024 Expectations Highlights: Will FM Sitharaman bring income tax relief for salaried taxpayers? Infra, railways capex also in focus

Budget 2024 Expectations Live: With less than a week left until Finance Minister Nirmala Sitharaman’s Union Budget 2024 presentati...

The Times of India | Jul 18, 2024, 22:14:51 IST

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22:14 (IST), Jul, 18

Budget 2024 Expectations Live: Strategic reforms needed in telecom sector

“India's telecommunications industry is at crossroads for transformative growth with the advent of Industry 4.0, 5G adoption, satellite communication, generative AI, and massive data consumption. To support this growth, strategic reforms prioritizing infrastructure development, spectrum management, and regulatory simplification are crucial. We look forward to a Union Budget 2024 that supports sustainable practices, enhances cybersecurity, and fosters a competitive landscape. Key measures include tax and levy rationalization to free up capital for operators, manufacturing incentives to promote local R&D and skilled employment, and increased investment in future technologies like 6G through stronger global partnerships. Addressing spectrum pricing, digital inclusion, taxation, cybersecurity, innovation, and sustainable practices will empower the telecom industry to drive India's digital future,” says Vinish Bawa, Partner and Leader – Telecom, PwC India.

21:13 (IST), Jul, 18

Budget 2024 Expectations Live: MSMEs continue to face challenges in international market access

“MSME sector in India has shown remarkable resilience and growth, contributing immensely to the country's GDP and Exports. With ~633.9 lakh firms, predominantly in the micro sector, MSMEs are driving entrepreneurship across urban and rural India. The government's initiatives have been instrumental in supporting this vital sector, especially in the post-COVID recovery phase.

However, MSMEs continue to face challenges in international market access, business acceleration, new technology adoption, accessing & managing finance, regulatory compliance management and skilled manpower retention.

With the Union Budget 2024 around the corner, the industry hopes the Government will include labour-intensive sectors in the Production Linked Incentives scheme, which would boost employment and capital infusion. For improving MSMEs access to target global markets, an effective and well-coordinated institutional structure for export promotion at Central, State (Around 5-6 key States have operational State Export Promotion Councils (SEPCs)) and District level is the need of the hour. Other key expectations include reconsidering the 45-day payment rule to approx. 60 or more days for enabling better cash flow management, extending the NPA classification period to 180 days, and revising the turnover criteria for TReDS registration. These changes would greatly improve financial stability for MSMEs. The implementation of uniform labour codes across all states and enhancing priority sector lending by banks would create a more supportive ecosystem for MSME growth,” says Mohammad Athar (Saif), Partner and Leader Capital Projects and Infrastructure Development, PwC India.

19:32 (IST), Jul, 18

Budget 2024 Expectations Live: India's current capital gains tax structure is complex

Budget 2024 expectations live: Deepak Jasani, Head of Retail Research at HDFC securities shares his expectations from the Union Budget 2024:

The forthcoming Union Budget due in July 2024 could continue the roadmap laid out in the previous Budgets barring a small course correction. It could largely retain the revenue and expenses projections made in the interim Budget (except for the windfall dividend from RBI). This additional receipt from the RBI could be used to i) cut the fiscal deficit target to 5.0% for FY25 from 5.1% in the interim Budget thus reinforcing the inclination to stick to fiscal consolidation; ii) make higher transfers to states for capex spend iii) increase transfer under PM KISAN from Rs.6000 p.a. to Rs.7500 p.a. iv) provide incentive to income tax payers to shift to the new tax regime by providing higher standard and other deductions/higher exemption limit/changes in tax slabs.

While there exists a fear among investors about the probability of the Govt turning populist in the Budget post the recent poll outcome, we feel that the recent announcements of ministerial appointments and modest MSP hikes negates such a fear. The Govt is likely to shun the race of competitive populism through handouts and is not likely to abandon the path of fiscal prudence although it may make extra efforts to win over a larger population of rural and urban poor by incurring targeted social welfare spends. It may want to protect its image of being a responsible, clean Govt, cutting wasteful spending, eradicating corruption, bringing more transparency by reducing off-Budget items and maintaining fiscal prudence.

The Budget could bring benefits to several sectors, including affordable housing, Industrials/Engineering, Consumer goods etc. The NDA 3.0 has already announced the decision to help 3 crore additional rural and urban households for the construction of houses.

The Union Budget could see the government paving the way for foreign-domiciled Indian startups to flip their corporate headquarters back to India — via the special economic zone of GIFT City — with minimal tax implications and to woo other companies to the Gift city with tax-breaks and other sops.

MSME sector could receive special mention by way of measures to ease capital raising and relaxing norms in NPA recognition by Banks. Banks could get a leg up in deposit mobilisation by way of enhanced deduction for interest receipts by depositors. Agri revival could be a major thrust in the Budget and provisions may be made for rationalisation of GST rates on certain agricultural inputs; and enhanced capex may be considered for deployment in rural infrastructure such as irrigation, warehousing and cold chains.

Steps to discourage F&O trading by retail investors could also be announced in the Budget or ahead of it. The Govt may announce its intent to divest some stake in low float PSU stocks as they are seeing valuation bubble although the divestment target may not be hiked majorly.

An Employment Linked Incentive scheme for labor intensive sectors like toys, textiles, furniture, tourism, logistics, small retail and media & entertainment may also be announced.

Measures to bring down the interest rates in the system could trigger higher business activity, new capex announcements, reduce the interest outgo for businesses and expand valuation of stocks. For this, sticking to the fiscal consolidation path and desisting the tendency to turn populist will be appreciated.

Higher focus on capex (vs higher revenue expenses) in the Budget will send a good signal to the markets and investors – both local and global.

India's current capital gains tax structure is complex, with multiple rates depending on the type of capital asset and the holding period. There is a need to simplify this. However in case this results in higher tax outgo or longer holding period on listed securities, the markets may react adversely in the short term. As some fears on this count are getting discounted, the markets may react positively to status quo on this. We don’t think that there would be any major changes to the capital gains tax although we do not rule out higher tax burden in some form on the urban rich.

STT on HFT trades need to be raised so that the retail traders who are losers in most F&O trades are protected to some extent. However, this may impact the volumes and depth in the market and adversely affect the revenues of the exchanges/SEBI. To discourage the galloping trades in options, income from F&O trades may be treated as speculative income and not normal business income.

Current taxation on dividends in the hands of shareholders is viewed as double taxation since the company already pays taxes on its profits. Any relief from this double taxation on dividends would be appreciated.

Any measure to encourage flow of money to equity markets (directly or through MFs) will be appreciated.

We do not expect any sizeable correction in the markets before the Budget and the correction post that may be short lived unless impacted by some other trigger. However retail investors will do well to review their asset allocation and equity portfolio and rebalance their excess holdings in equities (due to the rise in values) into other asset classes and in the process take some profits out of stocks that have run up much ahead of their fundamentals in the past few months.

18:28 (IST), Jul, 18

Budget 2024 Expectations Live: Reintroduce tax holiday for affordable housing with a tweak

Budget 2024 real estate: Given the significant forward and backward linkages that the real estate sector has with the economy, growth of the sector is extremely important from an overall growth of the economy perspective,” Gaurav Karnik tells TOI. Read full story here:

16:52 (IST), Jul, 18

Budget 2024 Expectations Live: Liquidity is a challenge faced by the NBFC segment

“I am expecting the budget to be in sync with the people aspirations from the Government’s unprecedented third term win. The focus, I believe, will be on strengthening the existing policy framework, focus on ease of business and put in the building blocks for a “Viksit Bharat” by 2047.

Liquidity is a challenge faced by the NBFC segment since public deposits and ECBs have been restricted and there is an appeal to the Government to ensure that systems are put in place for creating a refinancing body for the segment, so that the goal of financial inclusion of all can be met. The Government should also incentivise the NBFC segment for investment in tech, focus on serving the underserved communities and meet the final goal of easier access to credit by all.

In the eMobility space, we hope that Government enlarges the scope of Faster Adoption and Manufacturing of Electric Vehicles (FAME 2), to include smaller players too in the segment. eRickshaws and eLoaders have transformed the Informal Public Transportation Systems in the rural and urban spaces.

Today, we are witnessing a massive growth in the number of e-rickshaws, but not all of these are registered, especially those used for intra-business purposes. The Government should make EV registration and insurance a mandatory requirement. Lowering the registration cost as a policy will promote more people opting for registration.

The Govt needs to focus on creating policies that are the same across the country and promote a strong regulatory framework that ensures that the E-Mobility sector continues to grow and contribute significantly to the sustainability goals as well,” says Shalya Gupta, CEO, PHF Leasing.

16:21 (IST), Jul, 18

Budget 2024 Expectations Live: Budget will ensure government’s commitment to manufacturing sector

“With the Government being sworn in for a straight third time, we expect a continuity of policy. We expect a renewed focus on infrastructure development, manufacturing and job-creation. India aspires to be an export hub with the stated target of exports of Goods and Services worth $2 Trillion by 2030. This can be made possible by reducing the tariffs on imports of raw materials and ensuring that the right building blocks are in place, especially for the manufacturing sector. In addition, putting stringent anti-dumping measures will ensure that the domestic manufacturers have a level playing field.

We believe that the Budget will ensure that the Government’s commitment to the manufacturing sector as a whole and Chemicals sector in particular moves seamlessly. Today Chemicals contribute around 7% to the GDP and India is the 6th largest producer of chemicals in the world. The Chemical sector is estimated to grow to $300 Bn by 2025 and $1 Tn by 2040.

We hope that the budget focuses on bringing PLI in the chemical & petrochemical sector so as to propel growth, for both existing and greenfield facilities. In addition, development of quality infrastructure and chemical hubs with centralized waste and effluent treatment systems will bring India at par with the other manufacturing hubs. This will ensure that the sector continues to be an important participant in the India growth story,” says Mihir V Shah, Executive Director, Vipul Organics Limited.

15:46 (IST), Jul, 18

Budget 2024 Expectations Live: BSE Sensex, Nifty50 end at record highs

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, surged in afternoon trade after a volatile morning session, and hit fresh lifetime highs. While BSE Sensex crossed 81,000 for the first time, Nifty50 went above 24,800. BSE Sensex closed the day at 81,343.46, up 627 points or 0.78%. Nifty50 ended the day at 24,800.85, up 188 points or 0.76%. Read full story here:

15:19 (IST), Jul, 18

Budget 2024 Expectations Live: India stands at the cusp of a logistics revolution

“India stands at the cusp of a logistics revolution, and the upcoming Union Budget will play a defining role in shaping its course. Building upon the foundation established in the past few budgets, which included a significant investment for critical transport infrastructure projects to establish last and first-mile connectivity, is crucial.

This budget must continue its commitment to boosting the logistics sector, particularly for MSMEs. Providing these businesses with timely access to finance, cutting-edge technologies, and relevant training is essential for them to compete on a global scale. Furthermore, logistics companies are seeking to decrease regulatory costs. The government should promote the adoption of advanced technologies in logistics sector through incentives. This not only enhances the efficiency of logistics but also contributes significantly towards India's logistics performance index.

We are optimistic that this budget will introduce further initiatives to create a more efficient and sustainable logistics ecosystem, ultimately driving India's competitiveness at a global level,” says Gregory Goba Ble, Managing Director, UPS India.

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14:40 (IST), Jul, 18

Budget 2024 Expectations Live: Budget expected to be focused on agriculture

"The agricultural sector which is the backbone of the Indian economy has been through a challenging year. With monsoon playing truant, agricultural growth has diminished from 4.7% last year to 1.4%, which further added to the rural distress. This budget presents a crucial opportunity to address these concerns and propel the sector towards a brighter future. The government must prioritize agriculture and rural India, focusing on making farmers more resilient while simultaneously mitigating food inflation that disproportionately affects society's underprivileged segments.

Firstly, the budget must acknowledge the stark reality of food inflation, aggravated by stock restrictions on essential commodities such as pulses, wheat, and rice. This disproportionately affects the most vulnerable sections of society, demanding immediate attention. Similarly, the import dependence on pulses and oilseeds, the government's commitment to providing free rations under the Annapurna Yojana, and climate change further necessitate a robust domestic production system supported by developing an innovation ecosystem.

The government should prioritize R&D investments aligned with national priorities, focusing on developing climate-resilient crop varieties, microbial products, and sustainable farming practices. To facilitate the widespread adoption of technology, the budget should also incentivize the private sector participation in building a robust agricultural innovation ecosystem. Tax incentives for R&D investments by the private sector can encourage the development and integration of cutting-edge technologies. Furthermore, GST on agricultural inputs, such as agrochemicals, should be brought under the GST Council's purview and potentially lowered to 12% maximum to ease the financial burden on farmers.

The Kisan Samridhi Yojana should be strengthened to empower farmers with greater financial support and its utilization at farmers’ hands should be linked to the use of advanced agricultural inputs. Kisan Samruddhi coupons that could be used to purchase agricultural inputs would enhance productivity. This will ensure timely access to essential resources and subsequent financial support to the farmers. We expect that the budget should have adequate resources for capacity-building initiatives, and should incentivize the investments by private companies to train farmer groups, particularly women, creating awareness and adoption of modern growing practices. Easy access to adequate and affordable credit will further empower farmers to be able to adopt these technologies and enhance their livelihoods.

Extending the PLI scheme for production and export of latest innovation crop protection chemicals in India will provide long term dividend to India. Similarly, aligned to the theme of making India the Global Drone Hub, expanding the PLI scheme for building the agri-drone component manufacturing ecosystem will go a long way.

In a nutshell, we envisage that this budget is focused on agriculture, which will further lay the foundation for a strong, sustainable, and prosperous future for Indian farmers and the nation,” says Raju Kapoor, Director, Industry & Public Affairs, FMC India.

13:59 (IST), Jul, 18

Budget 2024 Expectations Live: Top 3 expectations on insurance front

“Improving Tax Benefits to Increase Insurance Coverage: India faces a severe issue with inadequate insurance. When a family's primary earner passes away, the money left for the survivors to live and settle debts is usually less than nine percent of what's actually needed.

Separating Savings for Life and Health: Changing tax sections 80C and 80D to provide separate tax breaks for the life-threatening risk part of term life plans could help close the gap in death risk coverage and enhance social security.

Complete Deduction for Life Insurance Premiums: Permitting individuals to deduct the entire amount paid for Term life insurance premiums from their taxable income, without any decrease due to claims made under other sections, such as 80C, will encourage more people to buy insurance. This means they get the full tax benefit for their insurance premiums, making insurance more financially appealing, says Satishwar B., MD and CEO, Bandhan Life.

13:10 (IST), Jul, 18

Budget 2024 Expectations Live: Allow deductions for interest on self-occupied housing loans under new tax regime

Budget 2024 for housing: “In line with the objective of the government of housing for all, it is widely expected that the government may consider some tax sops for the housing and funding cost for the middle and low income earners. In the context of a self-occupied property, the new default tax regime disallows any deduction for interest on housing loans. Conversely, the old tax regime permits a deduction of up to only Rs 2 lakhs. This distinction is crucial as buying a home and securing a loan for self-occupation are substantial financial commitments, often spanning long periods. With recent hikes in interest rates and regulatory reforms there is mounting pressure on the real estate sector. To alleviate these challenges and foster home ownership, it is suggested that the government may reconsider allowing deductions for interest on self-occupied housing loans even under the new default tax regime or enhancing the deduction in the old tax regime to at least Rs 3 lakhs,” says KPMG in India.

12:28 (IST), Jul, 18

Budget 2024 Expectations Live: What can the salaried, individual taxpayers expect? Top points

Budget 2024 income tax expectations: Keeping in view the government’s intent to simplify/ rationalise tax laws and enhance compliance, one may expect a few changes in the upcoming Union Budget 2024 to make the new income tax regime more attractive. Read full story here:

11:54 (IST), Jul, 18

Budget 2024 Expectations Live: Need transformative measures to accelerate growth in logistics sector

“In the forthcoming budget, FedEx looks forward to transformative measures to accelerate growth in the logistics sector and propel India towards its $5 trillion economy goal. We anticipate seeing significant investments throughout the industry in multi-modal connectivity, including advanced air cargo terminals and infrastructure enhancements to create seamless trade corridors, aligning with the Prime Minister’s Gati Shakti Plan and the National Logistics Policy.

We also anticipate continued focus on trade facilitation, streamlining and digitizing clearance processes, minimizing delays and enhancing cargo movement efficiency,” says Kami Viswanathan, President, FedEx, MEISA.

11:17 (IST), Jul, 18

Budget 2024 Expectations Live: India to stick to prudent financial plan, survey shows

New Delhi is expected to retain its earlier target of raising 14.1 trillion rupees ($169 billion) via bond sales in the fiscal year that began in April, according to the median forecast in a Bloomberg survey of economists. Read full story here:

10:40 (IST), Jul, 18

Budget 2024 Expectations Live: Fragrance and flavors industry awaits Union Budget 2024

"As we approach the 2024 Union Budget, we hold a positive outlook on the progress being made in the fragrance and flavors industry. Currently, there is a thriving Global market for aroma & medicinal plant oils and extracts due to the increasing demand for natural products for wellness and hygiene. This has led to the recognition of cultivating aromatic and medicinal crops as a promising avenue for diversifying agriculture in India. Encouraging crop diversification will foster a more inclusive and sustainable framework for supporting Indian agriculture. It also has the potential to boost profitability and serve as an additional source of income for untapped regions and Indian farmers.

In response to the demand for a guaranteed minimum support price (MSP) for agricultural products, the government can explore alternative methods to assist farmers in the upcoming budget. This may involve providing support for the subsidized expansion of aromatic and medicinal plants, introducing incentives for sandalwood, agar wood and other aroma plant cultivation, promoting high-value and climate-resilient crops, and enhancing agricultural marketing infrastructure. As brands become more involved in agricultural production and strive to enhance their environmental practices throughout their supply chains, the cultivation of natural ingredients will play a crucial role in meeting the market’s need for plant-derived, eco-friendly products. Consequently, this will further drive the expansion of the global wellness industry,” says Budget expectation from Mr. Manoj Arora - Managing Director, Sacheerome.

09:51 (IST), Jul, 18

Budget 2024 Expectations Live: Simplify taxation compliance on TDS on listed NCDs

“With the growing impetus on diversifying the funding mix of NBFCs, we would urge the regulators and government to simplify the taxation compliance on the TDS on listed NCDs which is currently at 10% TDS. The selling and re-selling of listed NCDs through stock exchanges ends up putting a taxation burden on the end investor. Since the TDS were introduced on listed securities keeping in mind that the customers are not paying the tax, however on ground there is an adequate trail of holders and interest payments. Our other recommendation is for allowing additional interest rate on Public Issue of Secured Non-Convertible Debentures (NCDs) issued to retail investors, pensioners and senior citizens over and above the interest rate applicable to institutional investors. We believe these regulations are crucial in order to attract more retail investors and ensure fair compensations to all our investors and stakeholders,” says George Alexander Muthoot, MD, Muthoot Finance.

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09:20 (IST), Jul, 18

Budget 2024 Expectations Live: BSE Sensex, Nifty50 open in red

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, opened in red on Thursday. While BSE Sensex was near 80,600, Nifty50 was above 24,550.

09:03 (IST), Jul, 18

Budget 2024 Expectations Live: GST reforms for wider reach

Insurance is not a luxury but a necessity. In India, adequate social security measures are still evolving, so insurance serves as a vital safety net - providing financial protection to families in times of illness, accidents, or the loss of a breadwinner. Not being able to afford insurance can leave families vulnerable to financial crises in times of need, says Satishwar B., MD and CEO, Bandhan Life.

“The imposition of an 18% Goods and Services Tax (GST) on life insurance in India can deter individuals and families from securing essential life coverage. Lowering the GST on term life insurance and applying a 'Zero rating' –which means setting the tax rate to 0%— By effectively removing the tax without sacrificing tax benefits for businesses, this policy aims to enhance financial security for more citizens. It will promote financial inclusion and facilitate greater participation in insurance schemes across society, empowering Indians with the means to mitigate financial risks.”

“Overall, the affordability and accessibility of insurance should be prioritised in order to take a significant step towards building a financially inclusive society where every individual has the opportunity to secure their financial future.”

07:02 (IST), Jul, 18

Budget 2024 Expectations Live: Incentivize private sector in senior citizen-friendly infrastructure

"Recognizing the demographic imperative of senior care is crucial for India's sustainable development. With a rapidly growing population, that will more than double from current 13 crore to 35 crore seniors, prioritizing senior well-being is not just a social responsibility but an economic necessity. The government's proactive approach in empowering our elders is commendable. As we move towards the 2024 budget, we anticipate a comprehensive roadmap outlining the next phase of progress.

Beyond potential tax benefits, special health insurance policies, and overall promotion of financial independence for seniors, we believe incentivizing private sector participation is key to developing much-needed senior-friendly infrastructure. This could include tax breaks, low-interest loans, and streamlined approvals for setting up senior care facilities nationwide. Such measures will foster innovation and unlock the full potential of the senior living sector.

Boosting digitization of healthcare services, that empower our elders physically, socially, and emotionally are essential to meet an increasing demand-supply gap of care giving.

We trust the upcoming budget will further bolster senior care, enabling a more self-reliant and resilient elderly population. By working collaboratively, we can ensure a comfortable and secure future for our seniors, enriching lives and strengthening the social fabric of the nation,” says Rajit Mehta, MD & CEO of Antara Senior Care.

06:10 (IST), Jul, 18

Budget 2024 Expectations Live: Formalise India's vast informal workforce

“As we look forward to the upcoming budget, we expect the new government to demonstrate a solid commitment to formalising India's vast informal workforce. This is a critical step for building a robust economic foundation and ensuring sustainable livelihoods. Rapid implementation of labour codes and addressing the skills-jobs gap are imperative.

Recent labour law reforms, including the Jan Vishwas Bill and the Four Codes, aim to decriminalize minor offences and ease regulations, enhancing the business environment. Through programs like the Skill India Mission and PMKVY, the government's focus on skilling initiatives is vital for empowering workers and addressing gender disparities, skill gaps, and rural accessibility.

Ensuring the integration of MSMEs into the global supply chain and promoting financial inclusion are pivotal to our agenda. The forthcoming budget must continue to foster an inclusive, stable economic landscape, and most importantly, it must champion the cause of workforce formalization, a task that cannot be delayed,” says Kartik Narayan, CEO-Staffing, TeamLease Services Limited.

05:00 (IST), Jul, 18

Budget 2024 Expectations Live: Empower fintech companies that provide last-mile services

“As we approach the Union Budget 2024, there is strong anticipation within the financial services sector for measures that will significantly enhance financial inclusion and economic growth. A key focus must be on investing in digital public infrastructure, which is essential for driving India towards its $5 trillion economy goal.

Digital public infrastructure has been instrumental in driving the exponential growth of digital payments in India, with an approximately 90-fold increase over the past 12 years, highlighting the nation’s digital transformation. This remarkable surge underscores the need for robust security measures to prevent digital payment fraud. We commend the recent initiatives to enhance security, such as the announcement of a digital intelligence platform. It is essential to continue focusing on enhancing security and safety measures to support sustained growth and consumer confidence in digital payments.

To maintain the growth of the payment ecosystem, it is essential to empower fintech companies that provide last-mile services. These companies are vital in bridging the credit gap, especially for SMEs and Nanopreneurs, thereby driving entrepreneurial growth and job creation. By making financial products accessible to more people, these fintech firms play a critical role in furthering financial inclusion. Additionally, exempting GST on services offered through Business Correspondent outlets would alleviate tax burdens and make it more feasible to extend financial services to rural and remote areas. This tax relief would lower operational costs and encourage greater outreach, fostering financial empowerment at the grassroots level. This exemption addresses current challenges in invoicing due to GST, crucial for enabling nanopreneurs' access to formal credit and promoting economic stability and growth.

Furthermore, the recognition of Self-Regulatory Organizations (SROs) in the fintech sector represents a positive step towards better regulatory alignment and communication. This will help maintain a balance between innovation and compliance, ensuring that fintech companies can continue to innovate while adhering to regulatory standards.Strengthening this regulatory dialogue will facilitate smoother interactions between fintechs and regulators, fostering a conducive environment for sustainable growth and innovation in the financial services sector,” says Dilip Modi, Founder & CEO of Spice Money.

04:01 (IST), Jul, 18

Budget 2024 Expectations Live: ‘Provide greater support to startups in space sector’

“Building on the successes of ISRO's Chandrayaan and Adithya missions, and the impactful milestones achieved by private sector launch companies, the space sector is gaining confidence, especially with FDI liberalization. However, as a sunrise industry, more demand generation from the government is essential to drive non-linear growth.

While current tax and customs exemptions benefit systems and sub-systems, we need to extend these to component levels. This is crucial for startups operating with limited resources, allowing them time to scale over the next decade. Additionally, while the FDI policy is welcomed, it requires fine-tuning to address certain regressive ambiguities.

The best support the government can provide is to act as a customer. India’s diverse landscape necessitates tailored programs and policies, with a concerted effort through ministries to integrate space into policy and program execution. Massive training programs, awareness initiatives, and industry consultations are crucial at all bureaucratic levels. The industry still relies on imports for critical components and technologies, and ecosystem growth is hindered by a lack of capital for risk-taking R&D. While private funds offer some support, substantial government initiatives are vital for confidence. We expect a significant increase in budget allocation to support these needs,” says Arpan Sahoo, Co-founder and Chief Operating Officer, KaleidEO.

03:00 (IST), Jul, 18

Budget 2024 Expectations Live: Top 3 things FM should do for salaried taxpayers

Budget 2024 income tax expectations: Archit Gupta, Founder & CEO, Cleartax has the following three recommendations for FM Sitharaman

Revision of Section 80C Limit: The much-needed revision in the section 80C limit, which has remained unchanged since 2014 despite rising inflation rates. Such a revision would not only help taxpayers combat inflation but also stimulate savings and investments in key financial instruments like ELSS, tax saver FDs, PPF etc. aligning with the broader vision of a financially robust and prosperous India.
Increase in Interest Deduction Limit under Section 24(b): To further encourage homeownership, the government should consider increasing the interest deduction limit under Section 24(b) from Rs. 2,00,000 to Rs. 3,00,000. This change would provide additional incentives for purchasing residential properties, supporting both individual financial health and the broader real estate market.
Reclassification of Bangalore as a Metro City: As Bangalore city has grown economically and demographically, reclassification as a metro city for income tax purposes is crucial. The current non-metro classification limits HRA deductions to 40%, compared to the 50% available in other metro cities.

02:19 (IST), Jul, 18

Budget 2024 Expectations Live: ‘Healthcare likely to see good allocation’

“With the 2024-2025 interim budget showing a 13.8% increase in healthcare and pharmaceutical allocations, we can likely expect this trend to continue. This boost means more financial support for crucial areas like research and development, infrastructure improvements, and accessibility initiatives. The extra funding will not only enhance domestic research but also help establish world-class health infrastructure and promote exports. There should be a focus on increasing allocations for centrally sponsored schemes and initiatives by the Department of Health and Family Welfare. The finance minister mentioned the formation of a separate committee to aid in implementation, which is a promising step. Optimising the regulatory framework through the new Drugs and Cosmetics Bill should further enhance India’s position in the pharmaceutical sector. The continued increase in budget allocations is great news for advancing the domestic healthcare system, and boosting the global standing of India’s pharmaceutical industry,” says Himanshu Chandel, Associate, Spice Route Legal.

01:00 (IST), Jul, 18

Budget 2024 Expectations Live: Drive manufacturing sector towards technological innovation

“As we approach the upcoming budget, it is imperative to focus on policies that drive the manufacturing sector towards technological innovation. We advocate for incentives that support the adoption of advanced technologies like AI and IoT, which are vital for boosting efficiency and enhancing global competitiveness. Additionally, policies that reduce the cost of capital and offer tax holidays for new ventures will significantly bolster the sector's growth.

Substantial investment in infrastructure, especially in logistics, is crucial to streamline supply chains. This should be complemented by initiatives aimed at skill enhancement through partnerships between industry and academia, ensuring we have a workforce equipped to meet the demands of modern manufacturing.

In the retail sector, simplifying regulatory compliance and licensing through digital platforms will greatly enhance business operations. Implementing a single-window clearance system and streamlining export-import tax policies will reduce administrative burdens and costs, thereby improving market access.

We also recommend providing tax incentives or subsidies for investments in digital technologies and e-commerce. Expanding reliable internet access in rural and semi-urban areas will broaden the reach of digital retail, fostering greater inclusivity.

Lastly, lowering the GST rate for essential products to 5% will make these items more affordable, stimulating demand and benefiting the entire supply chain. Achieving a balance between revenue goals and affordability can be accomplished through broadening tax compliance, thus supporting industry growth while ensuring consumer benefits,” says Prerna Kalra, CEO & Co founder, Daalchini.

00:02 (IST), Jul, 18

Budget 2024 Expectations Live: Grant priority sector status to eligible gold loan NBFCs

George Alexander Muthoot, MD, Muthoot Finance says, “We would like to continue to advocate to provide cushion and offer maximum benefit to customers by urging the government to grant eligible gold loan NBFCs with ‘priority sector status’. We believe that providing priority sector status to eligible gold loans NBFCs will be a step forward in driving financial inclusion as it majorly impacts the small borrowers whose borrowing needs are frequently less than Rs 50,000. We also propose for a ‘Gold linked credit line via UPI’ that can go a long way in helping households/small business owners meet their financing needs and monetise idle gold jewellery. Once the NBFCs are allowed to link with the UPI payment system, this will act as a secured credit that would be extended by NBFCs at a lower interest rate (12%-18%) compared to the high interest rates (around 36%) charged by credit cards.” “We further seek a level playing field by bridging the disparity and aligning the single counterparty exposure limits for gold loan NBFCs in comparison with other NBFCs i.e. 20% of Tier-1 capital. This restriction impacts the ability to lend credit and negatively impacts our potential customers.”

23:01 (IST), Jul, 17

Budget 2024 Expectations Live: Encourage spending and investment

“To help boost the economy and tackle rising inflation, the government needs to focus on strategies that encourage spending and investment. Simplifying GST rules, investing in job training, and changing tax brackets for consumers are essential steps. Keeping the 15% corporate tax rate for new manufacturing ventures would attract both local and international businesses to set up shop in India. Additionally, expanding the Production-Linked Incentive (PLI) scheme in the electronics sector can help Indian manufacturers grow.

The Union Budget of 2024 plays a crucial role in keeping India as the world's third-largest economy. With India contributing $3.7 trillion to the global economy and having the largest population of young people, there is a lot of untapped potential. To unlock this, the government must encourage spending.

One expected move is reducing the GST rate on LED TVs larger than 32 inches from 28% to 18%. This change aims to boost consumer spending in the electronics sector. Expanding PLI schemes to include smart TVs, refrigerators, and washing machines is also important for market growth and improving manufacturing capabilities.

Another proposal is to review income tax slabs to increase disposable income for taxpayers. This would likely lead to higher spending and boost consumption across various sectors. These measures are designed to harness India's economic potential, empower its young population, and strengthen its global economic position.

To combat the current economic challenges and rising inflation, the government should focus on strategies that stimulate spending and investment. Simplifying GST rules, investing in job training, and revising tax brackets are crucial steps. Maintaining a low corporate tax rate for new manufacturing ventures will attract businesses to India, while expanding the PLI scheme in the electronics sector will support local manufacturers.

The Union Budget of 2024 is key to maintaining India's position as the world's third-largest economy. With India's significant contribution to the global economy and a large youth population, there is enormous untapped potential that the government can unlock by encouraging spending. Reducing the GST rate for larger LED TVs and expanding PLI schemes to include other electronics will encourage consumer spending and market growth. Reviewing income tax slabs to increase disposable income will also boost spending across sectors. These measures aim to leverage India's economic potential, empower its youth, and strengthen its global standing,” says Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd.

22:39 (IST), Jul, 17

Budget 2024 Expectations Live: No Taxation for Annuity Plans to Benefit Both Retirees and the Industry

“Many Indians don't save enough for retirement, and the gap between needed and available retirement funds is expected to reach $85 trillion by 2050. To help close this gap, consider these steps:

Investing in pension and annuity products is crucial for income after retirement. Making taxes simpler or removing them for these products will encourage more people to invest in these important financial protections.

Pension policies, like the NPS, provide a steady income in retirement. It's important to lessen the tax load for people receiving pensions from the National Pension System (NPS), as the retirement fund gap is expected to increase a lot. The current Rs 50,000 tax exemption for NPS under Section 80CCD(1B) should also apply to pension and annuity plans provided by life insurance companies to encourage more people to use them,” says Satishwar B., MD and CEO, Bandhan Life.

21:30 (IST), Jul, 17

Budget 2024 Expectations Live: Revamp teacher training

Budget 2024 for education: “Interim budget (Feb 2024) saw continued focus on technology and digital, and quite rightly allocated additional funds towards research and innovation, and setting up of medical colleges. However, the current ~3.5% of GDP spending will not be sufficient for NEP implementation. Budget 2024-25 should drive more public-private partnership, revamp teacher training, allocate funds for CoEs and incubation centres in universities dedicated to AI, and emphasise the need for more ECE infrastructure and teachers,” Dr. Avantika Tomar, EY-Parthenon India Education Partner told TOI.

19:49 (IST), Jul, 17

Budget 2024 Expectations Live: Sustainable and resilient development should be at the forefront

“We anticipate the Union Budget 2024 to further propel India's development initiatives. We hope the government will prioritize robust budgetary allocations and policy measures to bolster projects across the country. We welcome the Government of India's commitment to fostering growth, sustainability, and inclusivity. The significant increase in infrastructure outlay to INR 11.11 lakh crores and the emphasis on green growth demonstrate the government's pursuit of economic excellence.

Sustainable and resilient development should be at the forefront of the budget's agenda. Furthermore, we expect the budget to address the pressing need for skilled manpower in the sector. Dedicated provisions for skill development and training programs will be instrumental in bridging the talent gap and ensuring the successful execution of ambitious projects. Aligned with the vision of 'Viksit Bharat' by 2047, we remain committed to contributing to the nation's economic excellence while creating opportunities across the ecosystem through accelerated growth,” said Arun Shukla, President and Director, JK Lakshmi Cement.

18:08 (IST), Jul, 17

Budget 2024 Expectations Live: Which way is fiscal deficit headed?

“For the 2024-25 final central budget, the main trade off appears to be between emphasizing capital expenditure growth vis-à-vis a reduction in fiscal deficit to GDP ratio. There has been a considerable recovery in the profile of fiscal aggregates after the COVID year. In that year, fiscal deficit had peaked at 9.17% of GDP and GoI’s debt to GDP ratio had also sharply exceeded 60%. Since then, as the economy recovered, the profile of fiscal imbalance also improved. Gradually, the fiscal deficit to GDP ratio fell to 5.6% by FY24 and it can potentially be targeted at a level of 5.0% of GDP in FY25,” says EY in its latest Economy Watch edition.

16:37 (IST), Jul, 17

Budget 2024 Expectations Live: Provide impetus to NBFC sector

“The forthcoming union budget is poised to chart the course for the new Indian government’s economic growth agenda. On the back of the political stability and resilient economy, it is expected to provide relief to various sections of the society and benefits for various sectors. The budget 2024 has the opportunity to help provide the NBFC sector and retail investors with the much needed impetus,” says George Alexander Muthoot, MD of Muthoot Finance.

15:58 (IST), Jul, 17

Budget 2024 Expectations Live: Top 4 things FM should do for agriculture

Budget 2024 expectations: Union Budget 2024, by Finance Minister Nirmala Sitharaman, should lay down the foundation for long term growth & competitiveness of the agriculture sector, says Shashi Kant Singh, Partner - Agriculture at PwC India. Read full story here:

15:25 (IST), Jul, 17

Budget 2024 Expectations Live: Raise the basic exemption slab to at least Rs 5 lakh

“The salaried class has always kept high expectations from the budget, but the last few budgets have been quite disappointing in terms of opportunities to optimize tax and potential for long term savings with higher returns. Few asks could include raising the basic exemption slab to at least 5 lacs and simplifying the tax rates to 10%, 20% and maximum 30% along with eliminating the surcharge and cess. Sec. 80C limits could be enhanced to at least 3 lacs from the current 1.5 lacs. Interest limits on housing loans and principal repayments could be enhanced further. Income Tax Returns could be simplified for Employees who have no other source of income other than salary, the submission by Employer along with TDS as applicable must be considered as auto filing of returns,” says Mahesh Krishnamoorthy, Managing Director, Core Integra.

14:38 (IST), Jul, 17

Budget 2024 Expectations Live: Bringing aviation fuel under the GST regime

‘’With an optimistic outlook for India in the global aviation market, we expect the newly formed government to provide a customs exemption for Non-Scheduled Operators, akin to the exemptions already available for scheduled air operations. This step would streamline the import process and level the playing field, allowing NSOs to operate more competitively and efficiently. The current tax structure on aviation fuel increases the overall operating cost for everybody in the aviation industry, particularly affecting NSOs operating on tighter margins than larger scheduled airlines. Bringing aviation fuel under the GST regime would result in a more rationalized and lower tax incidence, thus significantly reducing operational costs. This change would enhance the overall efficiency of our operations, leading to more cost-effective services for our customers. If the upcoming budget supports these expectations the growth and sustainability of the private jet and aviation industry will become more efficient, reliable, and affordable, contributing positively to the broader aviation sector and the economy,” says Kanika Tekriwal, Founder & CEO, JetSetGo.

14:06 (IST), Jul, 17

Budget 2024 Expectations Live: Travel and tourism industry poised for significant growth

Nishant Pitti, CEO and Co-Founder, EaseMyTrip lists his Budget 2024 expectations:

As India gears up for a full budget following the elections, the travel and tourism industry is poised for significant growth and development. The interim budget of February 2024 had already set a positive roadmap, with substantial increases in budgetary allocations for the tourism ministry, highlighting a clear focus on enhancing tourism infrastructure. This approach aims to boost domestic tourism and create new job opportunities.-

The government's commitment to improving connectivity through new railway and port corridors, alongside the growth of air connectivity and airport infrastructure, aligns with the broader economic goals. These initiatives are expected to stimulate local economies and attract both domestic and international tourists.

The emphasis on Foreign Direct Investment (FDI) and the development of iconic tourist centers further underscore the government's strategy to leverage tourism as a catalyst for economic growth. While there were some reductions in overseas promotion budgets, the focus on developing infrastructure and connectivity is anticipated to have a long-term positive impact.

In the aviation sector, the doubling of airports and the success of the Udan scheme are notable achievements. The planned expansion of rail services and the continued development of new airports will further enhance travel experiences across India.

Overall, the travel and tourism industry is set to benefit from these strategic initiatives, fostering growth, employment, and increased international collaboration. The new budget is expected to build on these foundations, ensuring sustained progress and positioning India as a premier global tourist destination.

13:34 (IST), Jul, 17

Budget 2024 Expectations Live: Relax visa norms for foreign tourists

Budget 2024 Expectations Live: Below are some key expectations of Balasubramanian A, Senior VP at TeamLease Services from Budget 2024

* Promotion of domestic tourism: Initiatives like "Swadesh Darshan" and infrastructure development at tourist destinations can increase domestic tourism, potentially impacting the sector by Rs. 10,000-15,000 crores. This could lead to significant job creation in hotels, restaurants, transportation, and other tourism-related services.
* Relaxation of visa norms for foreign tourists: Simplified visa processes and targeted marketing campaigns can attract more foreign tourists, potentially doubling tourist arrivals within 5 years. This could create several lakh jobs across the travel and hospitality industry.
* Support for MSMEs in the hospitality sector: Financial assistance and skill development programs for small and medium-sized hotels and restaurants can boost their competitiveness and create jobs.
* Focus on sustainable tourism: Promoting eco-friendly practices and responsible tourism can attract conscious travelers and improve the long-term sustainability of the sector, potentially leading to new job opportunities in eco-tourism and related fields.

12:32 (IST), Jul, 17

Budget 2024 Expectations Live: Prioritize investments in educational technology and infrastructure

“As the Union Budget 2024 approaches, the recruitment and startup ecosystem eagerly anticipates further advancements in technology and innovation. In recent years, the integration of AI and machine learning has revolutionized the hiring process, making it more efficient, inclusive, and accessible. Our expectations from this budget are centered on continued support for digital infrastructure and technology-driven solutions that can streamline recruitment and foster entrepreneurial growth.

Reflecting on last year’s budget, which laid a solid foundation for digital transformation by allocating funds for AI research and promoting startup ecosystems, we hope this year’s budget will build upon those initiatives. Specifically, we are looking for increased investment in AI research and development, enhancing talent acquisition, and matching candidates with the right opportunities more accurately.

However, it is evident that many colleges and educational institutions are still lacking in technology, infrastructure, and resources. For instance, several institutions struggle with outdated computer labs, limited access to high-speed internet, and insufficient training programs for both students and faculty. These gaps hinder the ability of institutions to adequately prepare students for a tech-driven job market. Last year’s budget did not allocate sufficient funds to address these critical areas, leaving a significant portion of our educational infrastructure under-equipped for the future.

We believe that the upcoming budget should prioritize substantial investments in educational technology and infrastructure. This includes upgrading computer labs, ensuring widespread access to high-speed internet, and providing robust training programs for digital skills. By doing so, we can better prepare our future workforce to meet the demands of a rapidly evolving job market,” says Manikanth Challa, Founder & CEO, Workruit.

12:08 (IST), Jul, 17

Budget 2024 income tax live: You may be paying Rs 43,226 extra on Rs 10 lakh income - find out why

Budget 2024 income tax expectations: The old tax regime income tax slab rates, which have remained unchanged since 2013, have not been adjusted for inflation, resulting in taxpayers paying higher tax rates despite the rising cost of living. Read full story here:

11:22 (IST), Jul, 17

Budget 2024 Expectations Live: Halwa ceremony kickstarts quarantine period

Finance Minister Nirmala Sitharaman on July 16 attended the halwa ceremony which kickstarts the Budget quarantine period. The Budget documents will be available in English and Hindi on the "Union Budget Mobile App" available on both the Android and Apple OS platforms after the completion of the Budget Speech by the Union Finance Minister in Parliament on 23rd July, 2024.

10:45 (IST), Jul, 17

Budget 2024 Expectations Live: Important for economy to fire on all cylinders

“The interim budget that the Finance Minister presented in February 2024 had outlined the vision for Viksit Bharat. I am expecting the upcoming budget to build upon this and lay down an action plan to achieve the ambitious goal. Today, India is well-positioned to become the world's third-largest economy by 2027, this is possible only if we fire on all our cylinders, particularly in the MSME sector. The sector is the second largest employer and contributes to over 30% of the GDP, making its growth crucial. The government should enact initiatives and policies that facilitate the growth of the MSMEs as well as the sectors that enable them to flourish, like the last mile financial inclusion,” says Hardika Shah, Founder and CEO, Kinara Capital.

09:50 (IST), Jul, 17

Budget 2024 Expectations for salaried employees: Hike in standard deduction?

Income Tax Expectations Budget 2024: Experts are of the view that to incentivise transition to the new income tax regime, the Modi government should hike the standard deduction limit from Rs 50,000 to Rs 1 lakh. This will also increase the disposable income in the hands of people, hence boosting consumption.

09:03 (IST), Jul, 17

Budget 2024 Expectations Live: Why is the stock market closed today?

Stock market BSE Sensex, Nifty50 holiday today: All segments, including the equity segment, derivative segment, and SLB segment, will not be operational today. Similarly, the Multi-Commodity Exchange (MCX) will be closed for the morning session but will resume operations for the evening session. Read full story here:

08:39 (IST), Jul, 17

Budget 2024 Expectations for railways: Safety in focus

Railway Budget 2024: Even as Indian Railways rolls out new trains like Amrit Bharat Express, Vande Bharat sleeper, Vande Metro, the focus for the capital expenditure allocated to railways in Budget 2024 is likely to be on enhancing safety on the network. Recent train accidents have put spotlight on the need to upgrade railway infrastructure.

08:39 (IST), Jul, 17

Budget 20204 for common man LIVE: Cut taxes on fuel

In its pre-Budget 2024 memorandum, CII has suggested that the government could consider cutting down the taxes on fuel, which can raise disposable incomes and boost consumption.

08:38 (IST), Jul, 17

Budget 2024 Expectations Live: Constitute the GST Appellate Tribunal

According to Paresh Parekh, Tax Leader - Consumer & Retail Practice, EY India, “This year, as we enter the 7th year of GST there is an urgent requirement to constitute the GST Appellate Tribunal to reduce any potential classification disputes.” “To manage the increasing customs disputes, consumers are expecting to have a Legacy Dispute Resolution Scheme in place,” he told TOI.

08:38 (IST), Jul, 17

Budget 2024 Expectations Live: Streamlined labour laws needed for workforce

Subburathinam P, Chief Strategy Officer, TeamLease Services Limited has said, "The manufacturing industry expects the new government to enhance initiatives like the National Manufacturing Policy and PLI scheme to increase the sector's GDP share to 25% by 2025. Efforts have focused on digital transformation, infrastructure development, and ease of doing business reforms. The industry seeks expanded skill development programs, more investment in automation and Industry 4.0 technologies, and stronger industry-academia partnerships. Additionally, increased support for SMEs and streamlined labour laws are needed to create a more dynamic and inclusive workforce."

08:38 (IST), Jul, 17

Budget 2024 Expectations Live: Budget to balance expenditure with fiscal consolidation

Budget 2024 expectations: EY in its latest Economy Watch edition has said, “The GoI will present the final FY25 budget in July 2024, revising the assessments as per the interim budget presented earlier in February 2024. By now, a clearer idea of FY24 actuals based on CGA data is available so that the RE for FY24 given in the interim budget can be updated. Our expectation is that in the light of continued drag on global growth, the GoI would continue to strengthen capital expenditure growth while also signaling its commitment to fiscal consolidation by reducing its fiscal deficit to GDP ratio to close to 5% in FY25. The government’s continued emphasis and prioritization of infrastructure expansion while accommodating some required increase in revenue expenditure growth would ensure a healthy GDP growth while progressively increasing space for private sector participation in additional investment. These trends would be in line with the objective of laying solid foundations for a medium-term growth of 7% plus. Ensuring this level of medium-term growth would also require maintaining the savings ratio in the range of 31% to 32% of GDP.”

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User KunderMost Interacted

682 days ago

The current govt in 10 year term has not given any relief to middle class tax payers. I hope this time the eyes will open. If not ...Read More

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Budget 2024 Expectations Highlights: Will FM Sitharaman bring income tax relief for salaried taxpayers? Infra, railways capex also in focus

Budget 2024 real estate: Given the significant forward and backward linkages that the real estate sector has with the economy, growth of the sector is extremely important from an overall growth of the economy perspective,” Gaurav Karnik tells TOI. Read full story here:

Budget 2024 income tax expectations: Keeping in view the government’s intent to simplify/ rationalise tax laws and enhance compliance, one may expect a few changes in the upcoming Union Budget 2024 to make the new income tax regime more attractive. Read full story here:

New Delhi is expected to retain its earlier target of raising 14.1 trillion rupees ($169 billion) via bond sales in the fiscal year that began in April, according to the median forecast in a Bloomberg survey of economists. Read full story here:

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, opened in red on Thursday. While BSE Sensex was near 80,600, Nifty50 was above 24,550.

Budget 2024 expectations: Union Budget 2024, by Finance Minister Nirmala Sitharaman, should lay down the foundation for long term growth & competitiveness of the agriculture sector, says Shashi Kant Singh, Partner - Agriculture at PwC India. Read full story here:

Budget 2024 income tax expectations: The old tax regime income tax slab rates, which have remained unchanged since 2013, have not been adjusted for inflation, resulting in taxpayers paying higher tax rates despite the rising cost of living. Read full story here:

In its pre-Budget 2024 memorandum, CII has suggested that the government could consider cutting down the taxes on fuel, which can raise disposable incomes and boost consumption.

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