Finance Minister Nirmala Sitharaman is set to present the full Budget 2024-25 on July 23. (Image: X/@ANI)
The Union Budget 2024-25 marks FM Nirmala Sitharaman’s seventh consecutive budget, making her only the second finance minister to achieve this feat after C D Deshmukh.
Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024-25 in the Lok Sabha on Tuesday, July 23. This marks her seventh consecutive budget, making her only the second finance minister to achieve this feat after C D Deshmukh. This will be the first budget of the Modi 3.0 government and is expected to push initiatives for various segments of the economy in line with the Viksit Bharat 2047 Vision while maintaining fiscal prudence.
Finance Minister Nirmala Sitharaman will start her Budget Speech at 11 am.
Budget Expectations on Income Tax
There are expectations that Sitharaman may announce changes on the income tax front, including raising exemption and standard deduction limits.
Single Hybrid Tax Regime: The government may move towards a ‘Single Hybrid Tax Regime’ as new taxpayers are already in the new tax regime. The exemption slab in the new regime is expected to be extended from the present ₹3 lakh to at least ₹4 lakh.
Incentives for Old Regime Taxpayers: Established taxpayers with incomes over ₹15 lakh still prefer the old regime. The government is expected to incentivize them to shift to the new regime, possibly introducing a new slab for incomes between ₹15 lakh and ₹18 lakh with a tax rate of 25%.
Standard Deduction: The finance minister is also expected to increase the standard deduction for salaried taxpayers to ₹1 lakh.
Real Estate Sector
The real estate sector has high hopes for this budget, with demands ranging from tax reliefs to affordable housing initiatives and land-related announcements.
Industry Status: The sector is advocating for ‘industry’ status to attract investments and streamline regulations.
Interest Deduction on Housing Loans: Raising the interest deduction limit on housing loans under Section 24B from ₹2 lakh to ₹5 lakh is a key demand.
Holding Period for Capital Gains: The government is expected to cut the holding period for capital gains on real estate to 12 months from the current 24 months and reduce the long-term capital gains tax rate from 20%.
Affordable Housing Criteria: The sector is pressing for raising the cost, size, and income criteria for affordable housing to make it more inclusive. Currently, the criteria for affordable housing are based on the cost of the property (Rs 45 lakh), carpet area (60 sq. m to 90 sq. m), and income of the homebuyer (EWS / LIG).
Budget Expectations from Industries, Including MSMEs
The government has focused on expanding the adoption of clean technologies and supporting the growth of industries, especially startups and MSMEs.
Infrastructure and Production Costs: The industry expects the government to improve infrastructure and lower production costs for MSMEs. Upgrading power infrastructure in industrial areas and further simplifying labor laws are necessary steps.
Compliance and Clearances: Streamlining pollution control clearances and reducing compliance costs are also key expectations.
Economic Survey 2023-24
Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 on Monday, setting the stage for the Union Budget 2024-25. It pegged India’s economic growth at 6.5%-7% for the current financial year 2024-25, with inflation at 4.5%. The survey remained bullish on the country’s growth prospects, focusing on job creation and skill development.
Prime Minister Narendra Modi remarked, “The Economic Survey highlights the prevailing strengths of our economy and showcases the outcomes of the various reforms our government has brought. It also identifies areas for further growth and progress as we move towards building a Viksit Bharat.”
