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Tag: Budget 2024

  • Budget 2024 Expectation: What Different Industries And Entrepreneurs Want From Government |

    Finance Minister Nirmala Sitharama will present the Union Budget 2024 tomorrow. The expectations are high from the government this time for all the sectors. While taxpayers are expecting a relief, industries from aerospace to mobility to legal advisories and import-export businesses are keenly looking at the budget. Take a look at what experts want from the NDA government:

    Akshat Khetan, Founder of AU Corporate and Legal Advisory Services Limited (AUCL), said, “Union Budget 2024-25 is expected to focus on enhancing judiciary infrastructure, speeding up judicial appointments, and improving legal aid services. Emphasis will be placed on technological advancements, alternative dispute-resolution mechanisms, capacity building, and legal reforms. Increased funding for legal awareness campaigns and support for victims of crimes will also be prioritized.”

    Dr Omkaar Hari Maali, Founder – Udyami Maharashtra, said, “The biggest expectation for the upcoming budget from aspiring entrepreneurs, particularly those in the export-import sector, is enhanced opportunities for funding. Currently, many new exporters have viable products but lack the financial resources to bring these products to the global market.” The Import-Export coach further said, “In addition to this, it is crucial for the government to establish incubation systems specifically designed for exports. The creation of manufacturing clusters should also include comprehensive training programs and accessible systems to support the export process. I also believe the government should focus on promoting the toy and processed foods industry to position India as the hub for these sectors.”

    Jalaj Kumar Anupam, Director, Consent Elevators, said, “The government should consider raising the income tax exemption limit beyond Rs 5 lakh to ease the burden on citizens and promote compliance. Economic growth relies on a skilled workforce, necessitating investment in re-skilling and vocational training programs. Open e-tendering processes can enhance fairness and accountability, especially for MSMEs. This approach should extend to industries like the elevator sector, ensuring opportunities for all companies, not just major stakeholders.”

    Olivier Loison, Managing Director, Alstom India, said, “It is crucial to continue increasing support for the rail and infrastructure sector. India’s infrastructure is in need of considerable capital investment in railways, metro, and regional trains to effectively cater to the needs of the growing economy in passenger and freight transportation. It would be encouraging to see the government’s push on Production Linked Incentive, tax rationalization, and towards equitable contract terms such as price variation conditions.”

    Dr Urvashi Mittal, Association Secretary 24-25, Inner Wheel, said, “Females comprise 50% of the population. My request to the Finance Minister is to take care of this 50% of the population, benefiting the entire population. For working women, provide hassle-free, cheaper loans, focus on maternity leaves, and ensure creche facilities. Homemakers should have opportunities to supplement their income through online jobs, with a priority on training. Emphasize cervical cancer vaccination and increase the budget for mid-day meals, after-school supervision, courses on ‘Indian Culture’ promoting ‘Vasudhaiv Kutumbakam’ in schools and colleges & include Transgenders in main-stream.”

    Dr Madhu Sudhan Reddy,  Founder of Pharmaceutical companies appealed to the FM to extend the NPA period for MSMEs from 90 to 180 days in the upcoming budget which is crucial for the revitalization of Micro, Small, and Medium Enterprises (MSMEs). “This extension will grant MSMEs more time to recover from financial challenges and avoid immediate default classification. The benefits include improved cash flow management, enhanced credit access, stimulated sectoral growth, and reduced operational stress for businesses. This move aligns with the need to bolster the backbone of the economy—the MSME sector,” said Dr Reddy.

    Aravind Melligeri, Chairman & CEO, Aequs, said, “We are confident the Government will prioritize the Indian Aerospace industry’s growth while presenting the Union Budget 2024-25. At a time when India is emerging the biggest aviation market and accounting for most new aircraft sold globally, we need a booster for making the country a global aerospace manufacturing hub with a thriving domestic Aerospace manufacturing ecosystem. There is thus a need to ensure optimal fiscal mechanisms to make domestic Aerospace manufacturing more viable and attractive. For starters, a PLI scheme for the manufacture of aircraft components and sub-assemblies with an emphasis on high ‘in-country value addition’ will be welcome. Measures such as tax breaks for Aerospace R&D and systems development will also help.”

  • THIS Finance Minister Changed The Budget Presentation Timing From 5pm To 11am, Ditching British-Era Practice | Economy News

    New Delhi: Before 1999, the budget used to be revealed at 5 pm on the last working day of February, following a British-era practice. However shifting gears, former Finance Minister Yashwant Sinha shook things up by moving the budget presentation to 11 am in the same year.

    Reports state that the reason behind the change in Budget presentation timing was the time difference between New Delhi and Westminster, United Kingdom. India is 4.5 hours ahead of British Summer Time.

    Sinha, a BJP Stalwart, thought that the switch in timings from evening to morning, would let everyone dive deeper into the numbers and announcements. His idea got the green signal  on February 27, 1999 and for the first time in Independent India’s history, the budget was announced at 11 am.

    Union Budget 2024 To Be Presented On 23 July 2024

    Union Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2024-25 in Parliament tomorrow. With this Budget presentation, Sitharaman is set to surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister. Sitharaman’s upcoming budget speech will be her seventh. 

  • Economic Survey 2023-24 To Be Tabled Today: Know Its Importance And History | Economy News

    New Delhi: Finance Minister Nirmala Sitharaman will table the Economic Survey for 2023-24 in the Lok Sabha on Tuesday soon after President Droupadi Murmu`s Address to both Houses of Parliament.

    The Survey, which is tabled in Parliament by the Finance Minister ahead of the Union Budget, is being prepared by Chief Economic Adviser Anantha Nageswaran, the main architect of the document.
     

    Economic Survey Presentation Timings And Other Details

    The Economic Survey 2023-24 will be presented in Lok Sabha at 1 pm and will be tabled in Rajya Sabha at 2 pm. This will be followed by a press conference by CEA Nageswaran.

    What is Economic Survey and what is its significance?

    The survey, also regarded as the official report card of the union government, gives a roadmap for the country’s economy and spells the way forward. The Economic Survey provides a summary of the annual economic development across the country during the financial year. 

    The annual survey analyses the trends in infrastructure, agricultural and industrial production, employment, prices, exports, imports, money supply, foreign exchange reserves and other factors having an impact on the Indian economy and the Budget.

    The survey also puts out economic growth forecasts, provides justification and detailed reasons why it believes the economy will expand faster or decelerate. Sometimes, it also argues for some specific reform measures.

    History of Economic Survey

    The first economic survey reportedly came into existence in 1950-51, when it used to be a part of the budget documents. In the 1960s, it was separated from the Budget documents and presented day prior to the Union Budget.The most important feature which many will look out for is its central theme. Last year`s central theme was `Agile Approach`, which put emphasis on India`s economic response to the Covid-19 Pandemic shock. The preface of the Economic Survey 2022 stated that the “Agile approach” was based on feedback loops, real-time monitoring of actual outcomes, flexible responses, safety-net buffers and so on.Along with the sectoral chapters, the Survey document also adds new need-based chapters that need focus.

    Union Budget for 2024 to be presented on July 23

    The Budget documents will be available on the Mobile App after the completion of the Budget Speech by the Union Finance Minister in Parliament on 23rd July, 2024.

     

  • Budget 2024: FM Sitharaman To Table Economic Survey In Parliament Tomorrow |10 Key Points | Economy News

    New Delhi: India’s Finance Minister Nirmala Sitharaman will table the Economic Survey in Parliament on Monday, July 22, a day before she unveils the Union Budget for a record seventh time. The upcoming budget aims to address unemployment and other ongoing issues in the country.

    Continuing the trend of the last few years, the 2024 Union Budget will be delivered in a paperless format. Notably, the Budget for the Union Territory of Jammu and Kashmir for 2024 will be presented on July 23, 2024. 

    Here are 10 Key Highlights of the Economic Survey And Budget 2024 You Need to Know

    1. The Economic Survey is made by the Economic Division of the Department of Economic Affairs in the Ministry of Finance.

    2. The first Economic Survey started in 1950-51 and was part of the budget documents. In the 1960s, it was separated from the budget documents and presented the day before the Union Budget.

    3. In 2022, the theme of the Economic Survey was ‘Agile Approach,’ focusing on India’s economic response to the Covid-19 pandemic.

    4. In 2023, the theme was ‘Recovery Complete’ as the economy was recovering during the Russia-Ukraine war and trying to return to pre-Covid conditions.

    5. This year’s Budget will be Prime Minister Narendra Modi-led government’s first major policy announcement after winning a third term in the Lok Sabha elections.

    6. Finance Minister Nirmala Sitharaman will break the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as Finance Minister. She has also surpassed Manmohan Singh, Arun Jaitley, P. Chidambaram, and Yashwant Sinha, who each presented five budgets.

    7. The Reserve Bank of India recently increased the GDP forecast for the current year 2024-25 to 7.2% from 7% earlier. Strong domestic demand has driven the economy to a growth rate of over 7% in recent years.

    8. The International Monetary Fund (IMF) has raised India’s growth forecast for 2024 from 6.8% to 7%, keeping the country as the fastest-growing in emerging markets and developing economies.

    9. For 2023-24, the government set the fiscal deficit target at 5.9% of GDP, later revised to 5.8%.

    10. India is expected to become the world’s third-largest economy with a GDP of USD 5 trillion in the next three years. By 2030, India could become a USD 7 trillion economy. (With Inputs From ANI)

  • Union Budget 2024: As Salaried Individuals Demand Hike In ITR Bracket, Check 5 Major Sources Of Income That Are Tax Free In India | Personal Finance News

    New Delhi: Finance Minister Nirmala Sitharaman is scheduled to unveil the Union Budget 2024, the most awaited financial event of the year, on Tuesday, July 23.

    The statement on income tax, which directly affects people’s finances, is what the average person is most interested to hear about from the Finance Minister during the presentation of the Union Budget 2023. 

    Citizens will have to wait and see what the FM has in store for the average person. People could examine a few income categories that are not subject to income tax. These kinds of earnings are referred to as tax-free earnings.


    Here’s looking at 5 major sources of income that are tax free in India


    1. Gift received from relatives

    Gift received from relatives are exempt from tax by virtue of Section 56. The following will be considered as relative for the purpose of claiming such exemption.
     
    (a) Spouse of the individual;

    (b) Brother or sister of the individual;

    (c) Brother or sister of the spouse of the individual;

    (d) Brother or sister of either of the parents of the individual;

    (e) Any lineal ascendant or descendent of the individual;

    (f) Any lineal ascendant or descendent of the spouse of the individual;

    (g) Spouse of the persons referred to in (b) to (f).

    2. Agricultural income 

    Agricultural income is not taxable in the country. However, if you have non-agricultural income too, then while calculating tax on non-agricultural income, your agricultural income will be taken into account for rate purpose. Even if you have only agricultural income, you are advised to maintain some proof of your agricultural earnings/expenses.

    3. Provident fund

    Employee Provident Fund (EPF) offers tax-free returns for those employees who have had an active contribution for more than 5 years in his/her job. This is applicable even if the person has changed multiple organisations/employers in those 5 years.

    4. Scholarships

    Income earned on scholarship is tax free under sec 56(ii) of the Income Tax Act.

    5. Salary Components

    Chunks of your salary component that comes under reimbursement like transport allowance, meal coupons, mobile phone bills, internet bills, books and periodicals, leave travel allowance, leave travel concession etc is tax exempted.

  • Budget 2024: Demands To Set Up 8th Pay Commission Pressed Before FM Sitharaman | Personal Finance News

    New Delhi: With just a week remaining for the Union Budget 2024 to be presented in Parliament by Finance Minister Nirmala Sitharaman, S B Yadav, Secretary General of the Confederation of Central Govt Employees and Workers has written a letter to the Cabinet Secretary, demanding the constitution of the 8th Pay Commission. 

    In the letter, the top three demands that have been put forth are –Immediate Constitution of 8th Central Pay Commission, Scrapping of NPS and Restoration OPS; and Releasing of 18 months DA/DR which was frozen during the COVID -19 Pandemic to employees and Pensioners.

    The following are the Charter of Demands that have been proposed by Yadav in his letter.

    1. Immediate Constitution of 8th Central Pay Commission.

    2. Scrap NPS, Restore OPS for all employees.

    3. To Release 18 months DA/DR which was frozen during the COVID -19 Pandemic to employees and Pensioners, Restoration of commuted part of pension after 12 years instead of 15 years at present.

    4. Remove 5% ceiling on Compassionate Appointment, grant compassionate appointment to all the wards/Dependents of the deceased employee.

    5. Fill up all vacant posts of all the cadres in all Departments, stop outsourcing and contractorization in Government Departments.

    6. Ensure Democratic functioning of Association/Federations as per provisions of JCM mechanism: (A) Grant recognition to Association/Federations which are pending, Withdraw the de-recognition orders of Postal Gr. C Union, NFPE, ISROSA. (B) Stop imposition of Rule 15 1(c) on service Association/Federations.

    7. Regularize Casual, Contractual labours and GDS employees, grant equal status to employees of Autonomous Bodies to that of CG Employees.

    8th Pay Commission Proposal Previously Sent

    A couple of weeks ago, the proposal to set up the 8th Central Pay Commission was sent by Shiv Gopal Mishra, Secretary, National Council (staff side, Joint Consultive Machinery for central government employees) to the Modi government.

    In his letter to the Cabinet Secretary, Mishra has urged the government to set up the 8th Pay Commission and deliberate on pay and allowances revisions.

    The 8th Central Pay Commission, once set up and recommendations are accepted, will impact the salary brackets of approximately 49 lakh government employees and 68 lakh pensioners.

    The pay commission is usually implemented after a gap of 10 years. Since the recommendations of the 7th Pay Commission was accepted in 2016, the next will be in effect in 2026.

    If the government decides to set up the 8th pay commission, it will require over a year or 18 months for its recommendations to be submitted. And once 8th Pay Commission recommendations are accepted by the government, it is most likely that it will be implemented by 2026, as per media reports.

     

  • Budget 2024: Health Experts Urge Government To Increase Bed Availability, Provide Subsidised Vaccines | Personal Finance News

    New Delhi: Health experts stressed the importance of increasing the number of hospital beds in the country during a pre-budget meeting with Finance Minister Nirmala Sitharaman in Delhi on Thursday. They emphasised that the current availability is below the standards set by World Health Organization (WHO).

    Girdhar Gyani, Director General of the Association of Healthcare Providers said, “We have presented to the government the data that there are less than two beds per thousand population in our country, while WHO requires that there should be 3.5 beds per thousand population. Over and above, we have told them that there is a great disparity in terms of bed density,” (Also Read: Vedanta Announces Financial Support For Transgender Employees’ Higher Education)

    The experts also pointed out that in regions like Bihar, the shortage of hospital beds forces patients to travel long distances for treatment “Karnataka has got 4.2 beds per 1,000 population, while Bihar has got only 0.3 beds per 1,000 population. So this makes Bihar population travel all the way for treatment,” Dr. Gyani explained. (Also Read: 6 Key Health Insurance Claim Rule Changes You Need To Know: Details Here)

    Additionally, the experts proposed that certain adult vaccines, such as the influenza vaccine and the cervical cancer vaccine for women, should be provided at subsidized costs. “Certain adult vaccination is a very important point. People do not know there is adult vaccination. Like we have influenza.

    There is a vaccine available for cervical cancer in women, and those people don’t know about it. So we want to provide some vaccines, either free or at the subsidized cost to the population,” Dr. Gyani added after the meeting with the finance minister.

    The experts also highlighted that, under the Ayushman Bharat Scheme, patients often need to go to private hospitals because 85 per cent of tertiary care beds are in the private sector. They suggested implementing a co-payment scheme for Ayushman Bharat patients to access treatment in private hospitals.

     “We are suggesting let there be a co-payment scheme. That means certain higher-end hospital patients can go and over and above the government reimbursement they should be allowed to pay cash from their own side so this will provide flexibility to the patient,” Dr. Gyani said. (With ANI Inputs)

  • Budget 2024: India Inc Expects Govt To Focus On Six Key Taxation Points | Personal Finance News

    New Delhi: Though there has not been any official announcement on Budget dates, expectations are high that  Finance Minister Nirmala Sitharaman will present the annual annual financial statement before Parliament in July.

    EY has prepared the expectation deck for the upcoming budget, wherein it has highlighted expectations from several counters regarding on tax policies, compliance, dispute resolution mechanisms and more.

    EY in its report has highlighted 6 key demands on taxation from India Inc. 

    1. Relaxation from Angel tax provisions

    Certain class of persons such as Foreign Portfolio Investors, companies listed on recognized stock exchanges etc should be exempted from angel tax.

    As they are already subject to stringent regulations and have a lower risk of circulating unaccounted money.


    2. Relook at Significant Economic Presence (SEP) provisions

    SEP should be removed from Income tax Act in light of new Pillar One framework.

    Alternatively, suitable guidelines should be issued to clarify the methods for determination of profits attributable to SEP


    3. Timely disposal of rectification petitions and orders giving effect

    The digitisation of the process for the will bring in transparency and accountability.

    The additional interest of 3% p.a. u/s. 244A(1A) may also be extended to delayed disposal of rectification applications


    4. TCS on Employee Stock plans

    Employee contributions towards ESOP/ ESPP programs of their employer’s should be carved out of the TCS provisions

    Alternatively, suitable amendments should be made to enable employers to consider the TCS credit available to the employees while determining the TDS liability on the salary income.


    5. Buy-back distribution tax (BBT)

    BBT should be exempted in case of listed shares wherein buy-back is under ‘open market through stock exchange’ method as it results in double taxation in hands of the company (as BBT) and shareholders (as capital gains or business income) 


    6. Encouraging employment generation

    The monthly remuneration limit to avail tax deduction may be enhanced from the current level of Rs 25,000 to Rs 1,00,000 to give boost to employment at higher levels.

  • Budget 2024: FM Nirmala Sitharaman Chairs Pre-Budget Meeting With State, UT Finance Ministers | Personal Finance News

    New Delhi: Union Finance Minister Nirmala Sitharaman chaired a pre-budget meeting with the Finance Ministers of all States and Union Territories on Saturday morning.The Ministry of Finance and Corporate Affairs organised a Pre-Budget Meeting with the Finance MInisters of all States and Union Territories with Legislatures. The purpose of the meeting was to gather suggestions for the upcoming Union Budget 2024-25.

    Ministers of State and other stakeholders are attending the meeting. Visuals showed Uttar Pradesh Finance Minister Suresh Kumar Khanna and Rajasthan Finance Minister Diya Kumari at the Bharat Mandapam venue before the meeting started this morning. (Also Read: Beware! Claiming False HRA While Filing ITR Could Cost You THIS Much: Check Here)

    The Union Finance Ministry had begun consultations on the budget a few days ago with different stakeholders of economy. Sitharaman has met economists, finance and capital market experts and industry bodies. (Also Read: Govt Imposes Stock Limits On Traders To Keep Prices Of Pulses In Check)

    Sitharaman chaired the first pre-Budget consultations with leading economists on June 19. The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, the finance secretary, secretaries of the departments of economic affairs, revenue, financial services and corporate affairs and the chief economic adviser.

    Meanwhile, Sitharaman will also chair the 53rd Goods and Services Tax (GST) Council Meeting scheduled in the second half of the day. This is the first meeting of the GST council after the formation of the new government.

    State finance ministers will also be present at the 53rd meeting of the Goods and Services Tax Council. As is the norm, the GST Council gets together to discuss issues pertaining to the GST regime, such as tax rates, modifications to policies, and administrative challenges.

    The Council is a key player in shaping India’s indirect tax system, making sure that it facilitates company and citizen tax relief while also being in line with the country’s economic objectives. The information on the agenda of Council meeting is not yet in public domain.

    However, the decisions and recommendations arising from the 53rd GST Council meeting will be closely watched by various stakeholders, including businesses, policymakers, and the general public, as they have the potential to influence taxation, trade, and overall dynamics.

    Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years. Meanwhile, preparation has commenced for the Union Budget 2024-25, the first for the third term of the Prime Minister Narendra Modi-led National Democratic Alliance government. (With ANI Inputs)

  • FM Sitharaman On Strong Wicket As Modi 3.0 Gears Up To Present Full Budget | Economy News

    New Delhi: Prime Minister Narendra Modi has sent a clear message of continuity in the government’s economic policy with the re-appointment of Nirmala Sitharaman as Finance Minister. 

    Sitharaman’s return comes on the back of a successful track record with the Indian economy clocking a robust 8.2 per cent growth in 2023-24, which is the fastest among the world’s major economies, and inflation coming down to below 5 per cent.

    During her tenure as Finance Minister, the fiscal deficit has also been reduced from more than 9 per cent of GDP in 2020-21 to the targeted level of 5.1 per cent for 2024-25. This has strengthened the macroeconomic fundamentals of the economy. S&P Global Rating raised India’s sovereign rating outlook to ‘positive’ from ‘stable’, citing the country’s improving finances and strong economic growth.

    After having presented an interim budget ahead of the Lok Sabha polls, Sitharaman now faces the challenge of presenting a full budget that ensures the economy continues on the high growth trajectory and creates more jobs while at the same time keeping in mind the aspirations of the coalition partners of the Modi 3.0.

    There are some apprehensions that the fiscal demands of the coalition partners may lead to a diversion of economic resources from investments in infrastructure projects that spur growth to social welfare schemes and higher allocation to states.

    However, given the low fiscal deficit, the hefty Rs 2.11 lakh crore dividend from the RBI and the buoyancy in taxes, the Finance Minister has a lot of headroom for pushing ahead with policies aimed at accelerating growth.

    As part of the next-generation economic reforms, the government was also planning to rationalise GST by reducing the number of tax slabs from four to three in order to make revenue collection and compliance easier. However, this may now have to be put on the backburner as tweaking GST rates on semi-essential items which are taxed at 12 per cent or 18 per cent could lead to an additional tax burden on essential items, which are taxed at a lower 5 per cent rate.

    Some of the crucial economic reforms such as making it easier for businesses to hire and fire labour to ensure a higher level of productivity to accelerate growth and generate more jobs in the long run may also have to wait.