Union Budget 2024-25: After the Bharatiya Janata Party-led National Democratic Alliance (NDA) formed the government in the center, Nirmala Sitharaman, who retained the Finance Ministry in the Modi 3.0 government, will present the Union budget 2024-25 on July 23. As Narendra Modi returned as Prime Minister for the third time, all industries including finance, Banking, Agriculture, Health, and others are anticipating big announcements in their favor.
Meanwhile, Salaried Individuals and Financial Institutions are seeking ease in taxation and tax regimes.
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Shravan Shetty, Managing Director at Primus Partners demands that the government should bring a single tax regime.
“The budget should look at simplifying taxation and this could be the right time to push for a single tax regime with exceptions removed. This will simplify tax filing and also help increase tax base and compliance," said Shravan Shetty.
"There is a need to explore alternative methods to provide benefits for home loans and NPS, which currently rely on tax incentives," he added.
"A simpler method of accounting for tax benefits during the payment of EMIs or NPS itself, rather than waiting until the end of the year to claim them, can simplify the process for taxpayers and automatically link transactions to tax returns. If simplification is implemented, a single tax platform can be created that includes revenue, tax paid, and exemption data for salaried taxpayers on the website. This would only require updates if necessary from the taxpayer. Taxpayers can simply review the calculation and pay taxes," he said further.
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Kumarmangalam Vijay, Partner, JSA Advocates, and Solicitors seeks change in tax rates.
“While the Budget presents an account of likely receipts and proposed outlays of the Government, it is very often used as a tool to divert resources for intended use within the economy," said Kumarmangalam Vijay.
"As 4-5 months would have passed during the current financial year before new Budget proposals shall take effect, I expect minimal changes to ongoing tax rates. However, to control runaway prices of properties and speculation in stock markets, I expect that income from gains earned without taking possession of property and delivery of shares and income from F&O trading may be sought to be taxed at a higher rate. Given the food inflation prevalent in the country, basic slab rates or limits of standard deduction may be raised. On the M&A front, the tax-neutral regime for the merger/demerger of LLPs is long-awaited,” he added.
Krishnamoorthy, Managing Director, Core Integra seeks revision in tax for long term savings.
“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.”
Commenting on taxation Reforms, Swetha Kochar, Founder & Partner, of PKC Management Consulting , said, “It is anticipated that the limits for deductions under sections 80TTA and 80TTB will be increased to ₹25,000 and ₹1,00,000 respectively, providing relief to individual taxpayers.”
“Additionally, the Long-Term Capital Gains (LTCG) exemption threshold may be raised from ₹1,00,000 to ₹2,00,000, potentially benefiting investors and boosting investment sentiment. We also anticipate increases in taxes such as Securities Transaction Tax (STT) and taxes on LTCG, STC,” she further added.
Nidhi Sabbarwal, Founder Kalyanamm Holywaste Recycling Pvt. Ltd demands to increase the income tax exemption limit in the forthcoming budget.
“Being a women entrepreneur, we have seen many young aspiring individuals are burdened by current tax slabs. Therefore, to witness the much-needed relief they deserve, we expect the upcoming 2024 Union Budget to increase the income tax exemption limit from the current Rs 3 lakhs to Rs 5 lakhs in the new tax regime. Last year’s budget announced a full tax rebate on taxable income up to Rs 7 lakhs. This year, we expect the budget to increase the rebate to Rs 7.5 lakhs. A move like this would provide the most required support to middle-income taxpayers and boost spending and investments. While major overhauls may not be imminent, however, we expect the union budget to make announcements that would be aimed at improving the Ease of Doing Business (EoDB), consolidating the tax system for stability, and progressing towards the implementation of the Direct Tax Code. Lastly, drawing parallels with the GST's impact on indirect taxation, we expect the Direct Tax Code to simplify the tax structure and alleviate the tax burden.”
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