Budget2024 #FinanceMinister #Sitharaman #Expectations #Highlights #EconomicOutlook #UnionBudget
As the eagerly anticipated Union Budget for the financial year 2024-25 draws near, the salaried class is keenly awaiting the announcements from Finance Minister Nirmala Sitharaman. Scheduled for presentation on February 1, this budget assumes particular significance as the final annual financial statement of the Narendra Modi government’s second term.
Key Expectations from Salaried Class:
1. Tax Rebate Increase:
Salaried individuals hope for an increase in tax rebates, providing relief on their taxable income. Many anticipate adjustments to exemptions to account for inflation, making the tax regime more favorable.
2. HRA and Income Tax Revisions:
Expectations are high for revisions in the House Rent Allowance (HRA) and income tax structures. Many are hoping for an increase in the basic exemption slab to at least 5 lakh, simplification of tax rates, and elimination of surcharge and cess.
3. Simplified ITRs:
The salaried class desires simplified Income Tax Returns (ITRs), especially for employees with no income sources other than salary. Consideration for auto-filing of returns based on employer submissions, along with applicable TDS, is a suggestion gaining traction.
4. Paperless Budget:
Continuing the trend initiated in 2021 due to the Covid-19 pandemic, Budget 2024 is expected to be presented in a ‘paperless’ format. The move aligns with digital practices and is aimed at reducing physical contact.
Sector-Specific Expectations:
1. Electric Mobility:
The electric mobility sector anticipates increased support, with expectations for the extension and enhancement of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. Substantial subsidies for electric vehicles and related infrastructure are sought to encourage consumer adoption and industry growth.
2. HR Tech Companies:
HR tech companies are hopeful for tax breaks on investments in recruitment platforms, employee training tools, and upskilling programs. Such measures would incentivize companies to leverage HR tech solutions, contributing to workforce development and quality.
3. Cybersecurity Focus:
Cybersecurity firms are calling for a budget with a strong focus on helping businesses overcome the threats of cyberattacks and digital risks. Tangible subsidies for cybersecurity protection solutions are seen as essential to support SMEs and start-ups in the rapidly digitizing landscape.
4. Startups and Innovation:
The startup ecosystem envisions a budget that champions startups, fostering Artificial Intelligence (AI) research and innovation. Expectations include initiatives promoting tailored upskilling programs in AI, partnerships between educational institutions and the industry, and support for community-centric solutions.
5. Tax Rationalization for Firms:
The PHD Chamber of Commerce and Industry suggests the introduction of optional concessional tax regimes for firms and Limited Liability Partnerships (LLPs), similar to Section 115BAA/115BAB. The focus is on rationalizing tax rates to promote business growth.
As the nation awaits the unveiling of Budget 2024, stakeholders across various sectors remain optimistic about the potential economic reforms and initiatives that may shape the financial landscape for the coming year. Stay tuned for live updates and analysis on February 1!