Budget 2024 Expectations Live Updates: Major changes in tax slabs likely?

Rakesh Kumar, founder of Square Insurance said, “Increasing the tax exemption limit on health insurance premiums to ₹75,000 would make healthcare more accessible. Introducing subsidies or tax credits for comprehensive electric vehicle (EV) insurance will promote EV adoption. Offering tax deductions for home insurance premiums under Section 80C will encourage homeowners to protect their assets. Extending deductions to other personal insurances will promote comprehensive coverage. Comprehensive tax reforms for life insurance, such as allowing complete deductions for premiums, lowering GST on term life insurance, and implementing zero-rating for specific policies, will make life insurance more affordable.”

Ankit Mathur, co-founder of Greenway Grameen said, “We look forward to specific budgetary allocation for climate action projects. Given the serious effects of climate change, experienced in the form of the recent heat wave, it would be prudent to invest in nature based, community driven projects. The government’s excellent work on infrastructure development should be complemented with sincere efforts in climate mitigation and adaptation to build resilience in India’s growth story.”

Vivek Lohia, Managing Director, Jupiter Wagons Limited said, “This year’s Interim Budget unveiled a transformative vision for the rail sector, emphasizing strategic initiatives such as the Port Connectivity Corridor, Energy, Mineral, and Cement Corridor, and the High Traffic Density Corridor. These corridors signify a pivotal step towards enhancing connectivity, driving economic growth, and ensuring passenger safety. With a focus on outcomes over outlays, the government underscores its commitment to timely delivery and cost-effective logistics solutions. Also, these are core infrastructures and every penny invested in core infrastructure has a rebound effect on the economy. The announcement needs to be formalized into a bold stride towards holistic transformation and underscores the government’s dedication to modernizing India’s railway infrastructure.”

Uma Shankar Patro, Senior VP of finance, at InfoVision said, “We look forward to initiatives that foster innovation, strengthen digital infrastructure, and promote skill development. We expect the budget to prioritize investments in emerging technologies like AI/ML, Data analytics, 5G, Telemedicine, and cybersecurity, ensuring India’s global competitiveness. Additionally, measures for startups and SMEs in the IT sector will be crucial for fostering entrepreneurship and job creation. Embracing innovation, inclusivity, and sustainability, the upcoming budget can propel India towards becoming a global leader in the digital age.”

Aarul Malaviya, founder of Zamit said, “As we look ahead to Budget 2024, there is great anticipation within the edtech sector for increased funding and supportive policies that can drive significant advancements in educational technology. The growing importance of digital learning tools and platforms has underscored the need for robust digital infrastructure in schools and educational institutions. This budget presents an opportunity to address these needs by allocating funds towards enhancing internet connectivity, providing modern devices, and ensuring that both teachers and students are well-equipped to leverage these technologies. We also hope to see initiatives that promote innovative learning technologies, such as artificial intelligence, virtual reality, and personalized learning platforms. These advancements have the potential to revolutionize the way education is delivered and accessed, making it more interactive, engaging, and tailored to individual learning needs. Additionally, policies that facilitate partnerships between educational institutions and tech companies can foster a collaborative environment where cutting-edge solutions can be developed and implemented effectively.

Naveen Garg, Cybersecurity Reliability Engineer at Akamai Technologies from California said, “Cybersecurity is more than just an IT concern; it is a national security priority. As cyber threats become more frequent and severe, a comprehensive approach involving increased budget allocation, public-private partnerships, and continuous innovation is required to protect India’s digital future. Without these proactive measures, the cost of cyber-attacks—both financial and reputational—will far outweigh any investment in cybersecurity.

Rahul Agarwal, acting CFO of Patel Engineering Limited said, “As we envision a Viksit Bharat by 2047, we expect the budget to allocate substantial resources towards infrastructure development, focusing on sustainable and resilient projects that will increase India’s growth trajectory. We eagerly anticipate policies that will boost private investment, enhance connectivity, and promote green infrastructure, paving the way for a futuristic and developed India. We also expect a substantial hike in capital expenditure, propelling the National Infrastructure Pipeline’s ambitious plan to encompass 7,400 projects. As the budget announcement approaches, our anticipation grows for how these policies will shape India’s infrastructure landscape, fostering resilience and sustainable growth.”

Amit Uplenchwar, Director, Kalpataru Projects International Limited (KPIL) said, “the government has set ambitious targets for deploying advanced energy solutions, including clean hydrogen, energy storage, and carbon capture, with a planned investment of $35 billion annually until 2030. The industry requires swift government actions on project approvals and supportive policies for sustainable energy transmission and dissemination, such as production-linked incentives, tax credits, and subsidies. GAIL’s proposal for a 1500 KTPA ethane cracker unit in Madhya Pradesh could be a game-changer, fostering numerous public-private partnerships and generating thousands of jobs. Significant government intervention is needed in the oil & gas, energy, and transmission & distribution (T&D) sectors in the form of financial aid and support for technology development, and keep up the infrastructure momentum which are crucial for domestic business growth.”

Sandeep Patel, founder and CEO of Nepra Resource Management Private Limited said, “The waste management and recycling sector is critical for India’s sustainable growth trajectory. We anticipate the Union Budget 2024 will accord it the requisite priority by classifying it as a priority sector, allowing CSR investments in waste management PPPs infrastructure creation, and enhancing credit accessibility through robust debt guarantees. To stimulate and incentivise private investment, the introduction of outcome-linked tax incentives, including the promotion of Extended Producer Responsibility (EPR) and sustainability bonds, is crucial. Further, establishing a dedicated platform on the Social Stock Exchange for waste management and recycling initiatives can unlock significant capital. These measures, coupled with a dedicated Viability Gap Funding, will catalyze the sector’s growth, create a circular economy, and address India’s pressing waste management challenges.”

Anil Kumar Ahuja, Founder of Colston said, “The retail sector can come up with a better solution for progressive momentum in the industry. We expect the government will protect vital industries’ long-term growth while appropriately preserving their flexibility. The budget is expected to guarantee the formulation of the National Retail Policy and provide a financing window reserved for retailers and distributors. Moreover, the tax benefits for middle-income earners could put more money in consumers’ pockets, leading to a rise in retail spending. Further, we expect continued support for e-commerce through policy changes to incentivise digital adoption which could benefit online retailers.”

Dhirendra Mahyavanshi, co-founder and CEO of Turtlemint said, “We eagerly await initiatives set to propel the insurance sector towards inclusive growth. With amendments aimed at achieving ‘Insurance for All by 2047′, we envision a transformative era. We anticipate provisions such as composite licenses, enhanced capital frameworks, and streamlined regulations that foster innovation while ensuring policyholders’ interests are safeguarded. These reforms are poised to unlock new opportunities in micro-insurance, agriculture coverage, and regional initiatives, reinforcing the industry’s commitment to customer-centric innovations.”

Faisal Farooqui, founder and CEO of Mouthshut.com said, “The government should increase disposable income by rationalizing direct tax rates and lowering GST rates. Additionally, removing the tax on interest earned from PPF and providing more tax-free investment options for the salaried class in safe and secure funds can further boost financial security.”

Anoop Bhargava, Director and CEO of Empire Centrum said, “The real estate sector in India has high hopes for the Union Budget 2024-25, anticipating reforms to boost housing, office spaces, and commercial areas. Key expectations include interest subsidy programs to make home loans more affordable, strategic use of government land to lower project costs, and tax incentives to counter rising raw material and land prices. The industry also seeks the revival of the Credit-Linked Subsidy Scheme (CLSS) and reduced stamp duty to enhance affordability. Additionally, granting ‘industry status’ to the housing sector and incorporating real estate under GST with a simplified structure could spur growth and investment. The commercial real estate segment seeks tax credits and incentives for redeveloping older areas and digital transformation initiatives. Meeting these demands could revitalize affordable housing, stimulate job creation, and position the real estate industry as a key driver of economic growth.”

Naveen Rathore, head of Access Network & Strategic Projects at Atlantis Intelligence said, “As we approach the Union Budget 2024, the telecom industry stands at a crucial juncture. To accelerate growth and innovation, it is imperative that the budget addresses key challenges such as high spectrum costs and infrastructure deficits in rural areas. We urge the government to introduce measures like rationalised GST rates on telecom services and equipment, incentives for digital literacy, and substantial investments in cybersecurity. These steps will not only bolster the industry’s financial health but also ensure robust and secure communication networks for all.”

Harsh Bhuta, Partner at Bhuta Shah & Co LLP recommended the following measures for income tax payers:

Upgrade in Technology:

The Government should take actionable steps to upgrade current technology and functionality to ensure compliance automation for the submission of returns and various forms. Enhancing the pre-fill option will reduce the time involved in filing returns/forms, thereby streamlining the compliance process.

Timely Resolution of Grievances:

Grievance resolution often faces delays, with some grievances remaining unaddressed for extended periods or being closed abruptly without proper resolution. It is imperative to refurbish the grievance mechanism to ensure a quick turnaround, reducing issues faced by taxpayers significantly.

Improving Faceless Assessment:

The faceless assessment scheme, introduced for transparency in assessment proceedings, has encountered challenges such as limited compliance time for notices, restrictions on submission sizes, delays in approval for physical hearings, and ineffective video conferencing. To make this scheme more taxpayer-friendly, these issues need urgent Address.

Adjustment of Tax Refunds Against Outstanding Demands:

Many taxpayers are dealing with the issue of having their tax refunds adjusted against outstanding demands. This matter requires immediate attention to ensure taxpayers receive their rightful refunds without undue delay or complication.

Timely Disposal of Rectification Applications:

Rectification applications filed by taxpayers are often not processed within a reasonable timeframe, and similar delays are noticed in the orders implementing appellate authority decisions. Expediting the disposal of these applications and orders is essential to alleviate taxpayer concerns and enhance procedural efficiency.

Raju Kapoor, Director, Industry & Public Affairs, FMC India, said, “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.”