Budget 2024 highlight: What salaried class expects from FM Sitharaman?

Sumit, the CEO and co-founder at DashLoc says: “DashLoc envisions a budget that champions startups, fostering Artificial Intelligence (AI) research and innovation for resource generation and employment opportunities. Expecting initiatives promoting tailored upskilling programs in AI, we look forward to partnerships between educational institutions and the industry, ensuring a steady pipeline of skilled professionals for the tech sector.”

He adds: “Finance Budget 2024 therefore also presents an opportunity to enhance innovation and community-centric solutions, strengthening the role of startups like ours in reshaping hyperlocal discovery with a keen emphasis on personalization and precision.”

Hyder Khan, CEO of Godawari Electric Motors, says that he is eagerly anticipating the upcoming budget with optimism and a fervent hope for increased support towards the electric mobility sector.

“The extension and enhancement of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme would be instrumental in propelling India towards a sustainable and eco-friendly future. Substantial subsidies for electric vehicles and related infrastructure would not only incentivize consumers but also bolster the growth of our industry.”

He adds: "These measures will not only promote cleaner transportation but also stimulate innovation and job creation. I look forward to a budget that recognizes the pivotal role electric mobility plays in achieving environmental goals and economic development, and I trust that the government will continue to foster a conducive ecosystem for the electric vehicle industry to thrive."

Ankit Aggarwal, the founder and CEO of Unstop, said that with talent acquisition and skills at the forefront, HR tech companies are hoping for tax breaks on investments in recruitment platforms, employee training tools, and upskilling programs. “This move would encourage companies to use HR Tech solutions and contribute to workforce development and quality,” he says.

Soham Thacker, the founder of the e-sports platform Gamerji, says the bifurcation of taxes is an important aspect to focus on as one cannot club anything which revolves around gaming in one particular basket.

“There has to be something for real money gaming, casino types of games and the gaming industry in general which can involve playing video games. Along with that, the budget should focus on the startup scenario in general, we keep talking about how India is a startup-friendly country and India Startup programmes but though still lack awareness and penetration from the incubation and government.”

He adds: “In a lot of developed and developing countries there are several grants from the government whether it is investment or ease of doing business or modification of laws for early stage companies.”

Kumar Ritesh, the founder of Cyfirma, a cybersecurity firm, said that he would like to see the upcoming Budget carry a strong focus on helping businesses overcome the threats of cyberattacks and other digital risks.

“Indian businesses are adopting digital solutions at an accelerated pace, yet their cybersecurity maturity remains low. A budget that supports SMEs and start-ups growth while ensuring their cybersecurity needs are taken care of is much needed in the current AI and digital age.”

He added: “The government’s approach needs to move beyond building compliance frameworks to providing tangible subsidies for cybersecurity protection solutions.”

On February 1, Union finance minister Nirmala Sitharaman will present the final budget of the second term of the Narendra Modi government. However, as the government faces a general election this year, in April-May, the upcoming budget will be an ‘interim’ one; the full budget for financial year 2024-25 will be tabled in July. Take a look at five major announcements from last year's budget:

As per Shashwath TR, co-founder and CEO, Mindgrove Technologies, 'Increasing the DLI scheme from $200 million to a more ambitious figure will significantly empower fabless startups in the sector, enabling them to reach higher goals and contribute meaningfully to the industry's evolution.'

“It is important to mention that any increase in rebate will be an additional boon to all the salaried classes. It will be important for the taxpayers to get exemptions adjusted to inflation. If the rates are changed in the old tax regime, we may also see changes in the new regime to make it lucrative," says Chintan Ghelani, Associate Partner, N.A. Shah Associates.

As per Angshu Mallick, MD and CEO, Adani Wilmar, the FMCG sector remains ‘optimistic’ and is ‘looking forward to a market that is less volatile in 2024.’

Mallick further says, “The expectations from the upcoming Union Budget 2024 continue to be progressive, as we eagerly anticipate many transformative measures from it.”

"It is suggested that optional concessional tax regimes may be introduced for firms/ Limited Liability partnerships (“LLPs") on lines of Section 115BAA/115BAB," says PHD Chamber of Commerce and Industry, calling for rationalisation of tax rates.

“Being an election year, the salaried class would have high expectations from the budget. Few asks could include raising the basic exemption slab to at least 5 lakh and simplifying the tax rates to 10%, 20% and maximum 30% along with eliminating the surcharge and cess. ITRs could be simplified for Employees who have not other source of income other than salary, the submission by Employer along with TDS as applicable must be considered as auto filing of returns,” Mahesh Krishnamoorthy, Managing Director, Core Integra, tells Mint.

Dinesh Arjun, co-founder and CEO, Raptee Energy, tells Mint: “To stimulate investment opportunities, there should be encouragement for potential investors, coupled with essential reductions in GST rates for electric vehicles and charging stations. The industry is particularly hopeful for a significant GST reduction, aiming to bring it down from 18% to 5% specifically for lithium-ion battery packs and cells, given their pivotal role in the EV sector.”

Like the previous three budgets, this one too will be ‘paperless,’ i.e., it will be read out from a tablet. The paperless mode was introduced in 2021 due to the Covid-19 pandemic, and has been continued.

Additionally, the budget documents will also be uploaded on the Union Buget Mobile app.

What were five major announcements from budget 2023? Click here to read.

The traditional pre-budget ‘halwa’ ceremony was held on Wednesday, marking the commencement of the ‘lock-in’ period for officials who were involved in the preparation of budget. During this period, they isolate themselves within the ministry premises, cutting off from their families to preserve the confidentiality surrounding the final budget document. Read