Budget 2024 Expectations Live Updates: Will Sitharaman bring changes in tax slabs?

Vivek Jalan, Partner at Tax Connect Advisory Services LLP said, "The Indian economy is robust and estimated to have grown 8.2% in real terms in FY24. What is important is that this High economic growth in FY24 came on the heels of growth rates of 9.7% and 7.0%, respectively. Hence this is true growth and not a result of a low base effect. The headline inflation rate is largely under control. Current account deficit for the year is around 0.7% of GDP. In fact, the current account registered a surplus in the last quarter of the financial year. Foreign exchange reserves are ample. Hence, India seems set for becoming the third Largest Global Economy very soon as per the vision of The Prime Minister .

However, this vision cannot be achieved unless the MSMEs are propelled forward, as they remain the chief employment generator and GDP driver for India. For MSMEs, the economic Survey does accept and recognise the need for maximum relief from compliance burdens. Licensing, Inspection and Compliance requirements all levels of the government on these businesses will be relaxed going forward. Relaxations in TDS/TCS requirements, requirement of 45 day payment from MSMEs to SMEs u/s 43B(h) of Income tax Act, etc may help the MSMEs."

Jyoti Prakash Gadia, Managing Director at Resurgent India said, "The survey highlights the healthy balance sheets of banks, creating opportunities for improved credit dispensation to fuel growth. Additionally, it calls for developing a broader and deeper capital market to support long-term funding, essential for achieving advanced economic status over the next 25 years. The survey also stresses the need for immediate changes in skill development programs and education policies to create jobs."

Ranen Banerjee, Partner and Leader Economic Advisory at PwC India said, “The Chief Economic Advisor has sounded a cautious note by projecting a growth rate of 6.5-7.0% for FY25, highlighting the global uncertainties and domestic challenges. The Economic Survey has proposed a compact between the Central and state governments, corporate sector and academia to overcome the unprecedented economic scenario. There is also a nudge to the private sector to invest in IP, machinery and equipment. Academia has been nudged to provide the necessary skills and knowledge for IP creation. There is an acknowledgment of the challenges faced by our exports, manufacturing and small and medium enterprises. There is also a hint at lowering our emphasis on manufacturing and adopting the agricultural sector too as a generator of jobs, which comes from a statement that our choices cannot be binary.”

Kanika Tekriwal, Founder & CEO of JetSetGo said, ‘’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.’’

Sachin Kothari, Director Of Augmont - Gold For All said, "Changes in import duty are the top priority. The market expects an Import duty cut in Gold from 15% to 10% and for Silver import duty to be at par with Gold under CEPA. Some refineries in India have been importing unrefined gold (gold dore) from LDCs under zero duty, so stopping Import Duty benefits from LDC and FTA countries is expected as it distorts a level playing field.

With IIBX at GIFT city emerging as a gateway to import bullion, bullion players want all import and export of gold to happen through IIBX. A special benefit of 0.5% should be given for importing gold. Market participants also like the setting of a Jewellery Export Center at GIFT City for domestic smaller traders.

Since the Gems and Jewellery market is regulated by SEBI, RBI, DGFT, Ministry of Finance, Ministry of Commerce, etc, market players want a single regulator in this market and also 100% bullion trade to be moved through Commodity Exchanges.

Sovereign Gold Bond has become very popular in India and gaining a lot of attraction. However, The interest earned from Sovereign Gold Bonds is subject to taxation as per the regulations, if redeemed before eight years. Market participants want the interest income on SGB to be made tax-free, to attract more investors in this scheme.

Other expectations are the establishment of GST bonded warehouses, mandatory hallmarking across India for all jewellers, permitting EMI on jewellery purchases and allowing lending and borrowing through commodity exchanges."

Sharan Maini, director of Veira Group said, "In the upcoming Union Budget, we hope for policies that will support an export-driven strategy, especially in television exports. To achieve this, a focus on boosting domestic production and empowering Indian manufacturers is essential. Streamlining supply chains and prioritizing the localization of components can reduce our dependence on overseas suppliers and strengthen our economy by building a strong local manufacturing ecosystem, creating jobs, and increasing foreign reserves. By creating a supportive environment that encourages innovation and simplifies business operations, we can enhance India’s position in global electronics manufacturing. Implementing these measures can help India become a key player in electronics manufacturing, serving both domestic and international markets."

Dr. Miniya Chatterji, Founding Director of Anant School for Climate Action, and CEO of Sustain Labs Paris said, “In the Union Budget 2024, it would be important to prioritize initiatives that drive sustainable growth. Investments should focus on renewable energy projects, green infrastructure, and sustainable agriculture. Another good move could be a reduction in the GST levied on renewable energy components. Additionally, provisions should be made to promote skilling and innovation in the field of sustainability.”

Ajay Kakar, CEO of Salve Pharmaceuticals said, “We need to invest more in R&D to encourage businesses to adopt new technologies and develop innovative products. Policies in the pharmaceutical industry that speed up the approval processes while also providing financial incentives for drug development are significant.”

Budget 2024 Expectations Live Updates: In its pre-Budget 2024 memorandum, CII said that it appreciates Government’s move to maintain stability in tax rates. It said, “It is suggested that to provide tax certainty for businesses, the corporate tax rates be maintained at the current levels."