Budget 2024 Expectation Highlights: All eyes on FM Nirmala Sitharaman to boost economy, provide income tax relief

"The MSME sector is a cornerstone of India's economic growth, marked by increased contributions and high optimism for progress. The surge in registrations on the UDYAM portal for credit and policy benefits underscores this momentum. However, the evolving business dynamics necessitate close monitoring of emerging risks. The sector's low risk and falling delinquency rates are enhancing borrowing prospects, with NBFCs showing consistent credit growth, especially post-Covid.

We urge the Union Budget to address specific challenges faced by NBFCs to foster a more inclusive and resilient financial ecosystem for MSMEs. One key recommendation is the creation of a new category of NBFCs dedicated to Priority Sector Lending (PSL), termed NBFC-PSL, focusing 85% of their AUM on the priority sector. Additionally, loans from banks to NBFCs for onward lending to MSMEs should be considered PSL loans, removing the current cap limits.

We also recommend reintroducing the Partial Credit Guarantee Scheme (PCGS) for NBFC-MSMEs, providing a portfolio guarantee for the purchase of Bonds or Commercial Papers with a rating of AA or below issued by NBFC-MSMEs, by public sector banks. This will facilitate greater funding to small and medium NBFCs. Expanding this scheme to include term loans from banks and financial institutions will further support the sector. Moreover, harmonizing the SARFAESI Act limit by reducing the cap for loans eligible under this act from Rs 20 Lakhs to Rs 1 Lakh for NBFCs, similar to banks, will enhance recovery processes for smaller loan defaults. This will improve financial health and boost confidence among lenders and investors,” says Shachindra Nath, Founder & MD, UGRO Capital Limited.

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“Changes in import duty are the top priority. The market expects an Import duty cut in Gold from 15% to 10% and for Silver import duty to be at par with Gold under CEPA. Some refineries in India have been importing unrefined gold (gold dore) from LDCs under zero duty, so stopping Import Duty benefits from LDC and FTA countries is expected as it distorts a level playing field.

With IIBX at GIFT city emerging as a gateway to import bullion, bullion players want all import and export of gold to happen through IIBX. A special benefit of 0.5% should be given for importing gold. Market participants also like the setting of a Jewellery Export Center at GIFT City for domestic smaller traders.

Since the Gems and Jewellery market is regulated by SEBI, RBI, DGFT, Ministry of Finance, Ministry of Commerce, etc, market players want a single regulator in this market and also 100% bullion trade to be moved through Commodity Exchanges.

Sovereign Gold Bond has become very popular in India and gaining a lot of attraction. However, The interest earned from Sovereign Gold Bonds is subject to taxation as per the regulations, if redeemed before eight years. Market participants want the interest income on SGB to be made tax-free, to attract more investors in this scheme.

Other expectations are the establishment of GST bonded warehouses, mandatory hallmarking across India for all jewellers, permitting EMI on jewellery purchases and allowing lending and borrowing through commodity exchanges,” says Sachin Kothari, Director Of Augmont - Gold For All.

“With the upcoming budget announcement, the consumer industry is looking forward to the PLI scheme being introduced for sectors including wearables, hearables, toys and furniture. This could promote export competitiveness and help these sectors succeed at the international level,” Paresh Parekh, Tax Leader - Consumer & Retail Practice, EY India told TOI.

Budget 2024 Live: A week ahead of the Union Budget 2024 presentation, the final stage of the Budget preparation process for Union Budget 2024-25 commenced with the customary Halwa ceremony in the presence of Finance Minister Nirmala Sitharaman

“The Government is expected to reduce the fiscal deficit target below 5 percent in the coming budget from 5.1 percent target in the interim budget. There could be additional focus on welfare measures particularly in rural areas, but allocation of resources will be along with state government contributions. The finance minister would be focussing on infrastructure to reduce supply bottlenecks. SME sector which has been lagging the overall growth of the economy could be an additional focus. With normal rainfall CPI inflation is expected to come in the 4 percent range in the coming months. Lower borrowing programme and higher demand for government securities by FII , NPS, EPFO could led to lower yields even without a rate cut in the coming months,” says Murthy Nagarajan. Head-Fixed Income, Tata Asset Management.

Budget 2024 expectations: The Modi government is likely to maintain its revenue collection targets of nearly Rs 1 lakh crore for the fiscal year 2024-25 (FY25) through disinvestment, asset monetization, and dividends from non-financial Central Public Sector Enterprises (CPSEs), according to senior officials.

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, saw record closing highs in trade on Tuesday. While BSE Sensex was above 80,700, Nifty50 also climbed above 24,600. BSE Sensex ended the day at 80,716.55, up 52 points or 0.064%. Nifty50 closed the day at 24,613.00, up 26 points or 0.11%.

"We are very confident that the government will continue to focus on infrastructure, as they aim to make manufacturing in India more affordable and globally competitive. Logistics play a crucial role in this, and improvements in logistics are likely to provide India with a significant advantage on the international stage. Consequently, the government is expected to continue investing in infrastructure.

Additionally, this time, the government will likely focus on rural infrastructure, as it enhances the rural market's access to urban areas, leading to better economic realization for the rural economy. The combined focus on both urban and rural infrastructure is expected to drive better growth. A rapidly growing rural market will offer better economies of scale for rural manufacturing and agriculture, while the urban industrial and manufacturing sectors will gain greater opportunities in the international market. Hence, we anticipate that the government will maintain its focus on these two areas,” says Umesh Revankar, Executive Vice Chairman at Shriram Finance.

Budget 2024 expectations: Finance Minister Nirmala Sitharaman is expected to focus on infrastructure development in her Union Budget 2024, according to Adil Zaidi, Partner and Leader - Economic Development Advisory at EY India.

Budget 2024 income tax expectations: In the last year’s budget, the FM effected some major changes in the new tax regime to attract taxpayers towards the same. A full tax rebate was also announced on taxable income up to Rs 7 lakh. This year, there is a further expectation for an increase in such a rebate to Rs 7.5 lakh.

“The upcoming budget should prioritise economic recovery with increased infrastructure spending and robust support for MSMEs. In the mutual funds sector, which has seen Assets Under Management (AUM) grow to Rs 57.26 trillion as of April 2024, there is a need for policies that boost investor confidence. This includes tax incentives, regulatory clarity, and promoting financial literacy. Additionally, ensuring sustainable growth through environmental, social, and governance (ESG) investments can further strengthen the sector,” says Chakrivardhan Kuppala, Cofounder and Director, Prime Wealth Finserv.

“The government has maintained a pro-MSME stance from a policy perspective, and there is anticipation for further encouragement in the upcoming Union Budget 2024. The budget is expected to strengthen initiatives that will further set the Indian economy on a path of steady growth. For the MSME sector, key focus areas may include fostering a favourable business environment to enhance the 'ease of doing business.' Some of these areas include facilitation of credit, streamlined GST processes, and regulatory changes. Furthermore, relaxed taxation policies that encourage entrepreneurship and innovation, along with incentives to drive R&D investments, would also be welcome. MSMEs stand to benefit greatly from improved digital infrastructure to enhance operational efficiency, access to markets, and encouragement of online transactions,” says Manish Shah, MD & CEO, Godrej Capital.

“The NDA-led Modi government, now in its third term, is set to present the budget in mid-July. Expectations are high for populist measures due to the coalition government. Although, no one can really be sure what the budget will unfold, this budget will be all about balancing reforms and growth. Anticipated measures include supply-side reforms, boosting manufacturing, implementing labour laws, skill development, and creating employment opportunities, particularly in low-skilled, labour-intensive manufacturing. The government is expected to continue its fiscal consolidation efforts by increasing revenue. They would also focus on boosting rural spending, as these areas are yet to recover their purchasing power since the pandemic. We expect the government to continue prioritisation on infrastructure capex, focus on defense and agriculture sectors, and strategic sale of central public sector enterprises (CPSEs), including Shipping Corporation, NMDC Steel Ltd, IDBI, BEML, HLL Lifecare and PDIL,” says Shruti Jain, CSO, Arihant Capital.

“The upcoming Union Budget 2024-25 presents a crucial opportunity to significantly advance the healthcare sector in India. By investing in the development of Centers of Excellence and scaling up 'Innovation Hubs,' we can drive indigenous R&D in advanced manufacturing technologies, novel drugs, and medical devices. Upgrading medical infrastructure in rural and underserved areas will not only improve accessibility and affordability but also bridge the health workforce gap through capacity building of rural medical practitioners.

Allocation for focused training programs for allied health professions, drug R&D, and quality testing will enhance the skillset of our existing workforce. Continuation and enhancement of production linked incentive schemes, as well as the establishment of bulk drugs and medical device parks, will bolster domestic R&D and manufacturing, fostering self-reliance through 'Make in India.' Leveraging integrative technologies for healthcare delivery, such as telemedicine and remote healthcare monitoring, will further improve accessibility and efficiency. Lastly, promoting preventative health programs and routine monitoring is essential to alleviate the growing burden of non-communicable diseases in the country.

The upcoming budget presents a pivotal opportunity to advance a comprehensive healthcare agenda that meets the diverse needs of our nation”, said Rishabh Bindlish Managing Director & Partner co-leads Boston Consulting Group's Health Care practice in India

India can be the world’s second largest economy soon? RBI deputy governor Michael Patra says that it is “possible to imagine India striking out into the next decade to become the second largest economy in the world not by 2048, but by 2031 and the largest economy of the world by 2060.”

At an address titled, ‘Future Readying India’s Monetary Policy’ at the Lal Bahadur Shastri National Academy of Administration, Mussoorie, Patra noted that the Organisation for Economic Cooperation and Development (OECD) already projects that in PPP terms, India will overtake the US by 2048 to become the second largest economy of the world. However, he sees a possibility of that happening sooner - in the next seven years!

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, opened in green on Tuesday after record closing highs in the previous session. While BSE Sensex was close to 80,800, Nifty50 was above 24,600.

"The United Nations Sustainable Development Solutions Network's recent report on the SDGs highlights a critical challenge: with 16% of the targets on track for completion by 2030, underscoring the urgent need for economies to prioritize sustainable development strategies alongside economic growth. Bridging the gap between long-term aspirations and near-term action, detailed roadmaps across every sector are essential.

In the interim budget that was announced mere months ago, the government outlined the New Green Deal, demonstrating its commitment towards achieving green growth and sustainable development. The provisions under this though predominantly focused on aspects of renewable energy and clean fuels, we are optimistic that the upcoming Union Budget, building on this, will drive focus towards strengthening the energy efficiency of India’s building infrastructure (built environment), considering its potential to bring down the national carbon emissions disproportionately. Additionally, provisions to bolster the skilling and innovation initiatives pertaining to green technology will be key in bridging the existing gaps,” says Arun Awasthy, President & Managing Director, Johnson Controls India.

“For India to become a $7 trillion economy financial services and fintech sector has a crucial multiplier role to play. We expect the pace of reforms to accelerate with the upcoming budget. The focus of the reforms has to be on creating more large scale balance sheets, infusing digital and AI in the financial services operating model to drive efficiency, with exceptional focus on governance and risk. Driving better partnerships between fintechs and unlocking more pools of domestic and global capital to fund these balance sheets plus technology will be crucial” says Yashraj Erande, Managing Director and Partner, BCG.

“Given the importance of micro, small, and medium enterprises (MSMEs) in India's economy, experts may anticipate measures to support MSMEs, such as easier access to credit, incentives for technology adoption and innovation, and measures to address operational challenges.

There is a need to increase allocations towards social sector spending, including healthcare, education, and social welfare programs. Strengthening social safety nets could help address the needs of vulnerable populations and promote inclusive growth.

With growing concerns about climate change and environmental sustainability, there is a need of various measures to promote green initiatives and renewable energy projects. Incentives for clean energy production, energy efficiency, and sustainable practices could be included to support environmental goals.

Increased allocations towards infrastructure projects to stimulate economic growth and create jobs. Investments in sectors such as transportation, energy, water, and digital infrastructure could be prioritized to boost productivity and competitiveness,” says Assocham in its pre-Budget 2024 memorandum.

“Government is aware that currently, there are 33 sections dealing with different types of payments to residents where the TDS rates vary from 0.1% to 30%. In some sections, there are varying rates of TDS depending upon status of payees or nature of payments which creates confusion to taxpayers. Government may announce a roadmap for reducing the disparity in TDS rates by having only two or three categories of payments,” says EY in its pre-Budget 2024 note.

The key areas with respect to indirect taxes where CII suggests changes are as follows:

• Rationalization of tariff structure
• Review of exemptions
• Litigation resolution
• Grievance redressal
• Digital transformation

"As India continues its journey towards a future of net-zero emissions, we commend the government’s forward-thinking approach to sustainability and applaud its ambitious green objectives. Furthermore, we appreciate the government's strategy to reduce carbon emissions while ensuring a reliable base load through thermal power plants. Promoting technologies like Advanced Ultra Super Critical (AUSC) power plants underscores this commitment, offering reduced carbon footprints compared to traditional plants.

As we approach the Union Budget 2024, we anticipate strategic initiatives that will drive growth and sustainability. We hope to see significant allocations towards renewable energy projects, enhanced grid infrastructure, and innovative technologies. Additionally, policy reforms aimed at reducing regulatory bottlenecks and promoting private investment will be crucial. These measures will not only help in meeting the growing energy demands but also in achieving the nation's ambitious targets for a greener and more resilient energy future, says Kush, CEO of Essar Power.

"As we approach the upcoming Union Budget, we believe 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, regional trains to effectively cater to the needs of growing economy in passenger and freight transportation. The budget is expected to provide capital funds for the expansion of metro network, NaMo Bharat corridors, Vande Bharat trains, high speed corridors and economic corridors to continue the positive momentum. Government’s continued focus on safety upgrades, especially network wide implementation of train protection systems, mechanisation of maintenance operations, and modernisation of passenger amenities is a welcome move. It would be encouraging to see government’s push on Production Linked Incentive, tax rationalization, and towards equitable contract terms such as price variation conditions,” says Olivier Loison, Managing Director, Alstom India.

“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. There is a need to explore alternative methods to provide benefits for home loans and NPS, which currently rely on tax incentives.

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.

This would make tax filing as straightforward as paying bills, especially for those with fewer income sources, which applies to the majority of taxpayers in India,” says Shravan Shetty, Managing Director at Primus Partners.

Structural reforms play a crucial role in shaping the long-term growth trajectory and resilience of an economy. Few recommendations by Assocham in its pre-Budget 2024 memorandum are as follows:

Introduce measures to enhance flexibility in the labor market while ensuring social protection for workers. Simplify labor laws, streamline compliance procedures, and encourage formalization of employment to boost productivity and job creation.

Continue efforts to improve the ease of doing business by reducing bureaucratic hurdles and regulatory bottlenecks. Simplify business regulations, expedite approvals and permits, and pro- mote digitalization to enhance efficiency and attract investments.

Address issues related to non-performing assets (NPAs), improve corporate governance standards, and promote innovation and competition in the financial industry.

Accelerate infrastructure development through public-private partnerships (PPPs) and strategic investments. Focus on sectors such as transportation, energy, water supply, and digital infra- structure to enhance connectivity, productivity, and competitiveness.

Undertake structural reforms in the agriculture sector to enhance productivity, market access, and income opportunities for farmers. Promote contract farming, invest in agri-infrastructure, facilitate value chain integration, and encourage diversification into high-value crops.

Rationalize and simplify the tax system to improve compliance and promote investment. Con- sider measures such as reducing corporate tax rates, phasing out tax exemptions, and broaden- ing the tax base to make the tax regime more efficient and equitable.

Introduce policies and incentives to promote environmental sustainability and climate resilience. Encourage adoption of clean technologies, promote renewable energy sources, and incentivize sustainable practices in industries such as agriculture, manufacturing, and transportation.

By prioritizing these structural reforms in the Union Budget 2024-25, India can lay the foundation for sustainable and inclusive growth, enhance its competitiveness, and navigate challenges effectively in the years ahead.

“The most important aspect of the upcoming budget would be the Fiscal Deficit target for FY25 and trajectory for FY26. Honourable Finance Minister in her pre-election budget had reiterated government’s intention to adhere to fiscal discipline with target to achieve a deficit of 5.1% for FY25 and below 4.5% for FY26. India has recently opened its doors for foreign investors to invest in fixed income (Select Government securities) market and it would be important to deliver on promised pathways for annual borrowings.

Fiscal discipline has important implications on domestic liquidity environment, currency movement, inflation, interest rates and indirectly equity market outlook. We would look forward to a positive balance between capital investment and welfare schemes for the poor section of the country,” says Chandraprakash Padiyar, Senior Fund Manager, Tata Asset Management.

“The most important aspect of the upcoming budget would be the Fiscal Deficit target for FY25 and trajectory for FY26. Honourable Finance Minister in her pre-election budget had reiterated government’s intention to adhere to fiscal discipline with target to achieve a deficit of 5.1% for FY25 and below 4.5% for FY26. India has recently opened its doors for foreign investors to invest in fixed income (Select Government securities) market and it would be important to deliver on promised pathways for annual borrowings.

Fiscal discipline has important implications on domestic liquidity environment, currency movement, inflation, interest rates and indirectly equity market outlook. We would look forward to a positive balance between capital investment and welfare schemes for the poor section of the country,” says Chandraprakash Padiyar, Senior Fund Manager, Tata Asset Management.

Budget Expectations from Atul Monga, CEO and Co-Founder, Basic Home Loan

Increase in Home Loan Interest Rate Rebate: A primary expectation is to enhance the tax rebate on home loan interest under Section 24 of the Income Tax Act from Rs 2 lakh to Rs 5 lakh. This aims to boost housing demand, particularly for budget homes, which have seen a decline in sales since the pandemic.

Affordable Housing Boost: Significant benefits and tax breaks are anticipated to encourage the development and purchase of affordable housing. There is also a call to adjust the qualifying cost of affordable properties, especially in expensive cities like Mumbai, where the current limit of Rs 45 lakh is considered insufficient. Currently, interest subsidies under the Pradhan Mantri Awas Yojana (PMAY) are available for homes costing up to ₹45 lakh, but there are expectations to raise this limit to Rs 65 lakh to reflect rising property prices.

According to EY’s pre-Budget 2024 note, certain class of persons such as Foreign Portfolio Investors, companies listed on recognized stock exchanges etc should beexempted from angel tax. As they are already subject to stringent regulations and have a lower risk of circulating unaccounted money.

According to CII, currently, the process of investment for foreign investors needs clearances from Finance Ministry, Home Ministry, Commerce Ministry, External Affairs Ministry, etc., besides other sectoral ministries, State governments, other Institutions and regulators like RBI, SEBI, Stock exchanges, Banks, FIPB, Invest India, etc. “Set up an independent Ministry for Investment, which could become the single point of contact for facilitating the opportunities for investment in India as well as for Indian investors to invest abroad,” says CII in its pre-Budget 2024 memorandum.

EY has listed some its income tax expectations from Budget 2024, these are:

Increase in the basic exemption limit from Rs 3 lakhs to Rs 5 lakhs in the new tax regime and reduction in tax rates, in order to provide more disposable income in the hands of taxpayers

Overhaul of the capital gains tax structure – change in tax rates, method of computation etc.

Enhance the existing limit for deduction towards interest on housing loan for self-occupied house property from Rs 2 lakhs to at least Rs 3 lakhs

Raise the standard deduction threshold from Rs 50,000 to Rs 1,00,000

“Currently, Public Sector Enterprises (PSEs) are selected for disinvestment and then interest is sought from investors. If the selected PSEs don’t receive expected interest or valuation, the disinvestment process gets stalled. Move to a process in which interest of investors is sought for all PSEs to be privatized. The PSEs receiving higher interest and expected valuation can be prioritized for disinvestment. Basis investor interest, Government should come up with a schedule for the disinvestment of PSEs for the next three years,” says CII in its pre-Budget 2024 memorandum.

"The growth of the Indian NBFC industry is significantly influenced by robust financial inclusion, consumer demand, and improving trade balances. The upcoming Union Budget should emphasize enhancing financial inclusion across the country, implementing policy reforms, supporting Production-Linked Incentive (PLI) schemes, and reinforcing digitalization efforts to sustain the sector's growth. Financial and digital inclusion will enhance credit access by increasing convenience and reducing turnaround times. Furthermore, MSMEs are the driving force behind India's economic growth and prosperity. To fully unlock their potential, the Union Budget should prioritize measures to improve access to liquidity, skill development, and ease of doing business for small enterprises. Strengthening the digital infrastructure for MSMEs will also enhance their creditworthiness and contribute to the industry's growth. This focused approach will ensure the sustained growth of both the sector and the overall Indian economy.", says Rakesh Kaul, CEO, Clix Capital.

“The government has shown commendable commitment towards fiscal prudence. In the medium to long term, higher growth rate is the strongest determinant of macroeconomic stability and debt sustainability, hence fiscal consolidation should be balanced with economic growth.

For 2023-24, the fiscal deficit target of 5.9 per cent of GDP should be maintained. For 2024-25, it can be further reduced to around 5.4 per cent of GDP. Bringing down the fiscal deficit to this level will entail giving a concerted thrust to pushing revenue receipts by bringing in greater tax efficiency along with rationalization of expenditure such as subsidies etc.

To achieve this, the Budget may consider setting up a Loan Council which would help oversee the debt and fiscal deficit profile of the Central and State governments as suggested by the Twelfth Finance Commission. The amount to be provided by the Centre for lending to the States may also be approved through an autonomous body like this and could be linked to the quality of expenditure including scale of non-merit subsidies,” says CII in its pre-Budget 2024 memorandum.

Budget 2024 income tax expectations: “Government is conscious of the complexity in capital gains tax structure. At present, there is no consistency in tax rates or holding period for different types of instruments falling within same asset class. Even the indexation benefit differs in different situations. An indication about a simplified capital gains tax regime may be expected,” says EY in its pre-Budget 2024 note.

“The auto industry is taking the disruption head-on — electrification has gained traction this year and the share of other cleaner technologies such as hybrid and compressed natural gas has increased. However, futuristic technologies, including flex fuel, hydrogen and fuel cell, will need propulsion to translate into commercial reality. Long-term policy clarity on that front will help industry navigate through short-term bumps,” says Hemal Thakkar, Senior Practice Leader & Director – Consulting, CRISIL Market Intelligence & Analytics.

“As the Union Budget 2024 approaches, the oil and gas sector is poised for transformative changes. The focus on boosting exploration, fostering green hydrogen, and increasing gas consumption aligns with global energy trends. The industry's call for incorporating gas under GST highlights the need for regulatory reforms to stabilize prices and attract investments. Investment in infrastructure, particularly in energy, logistics, and gas pipelines, is crucial for achieving the target of a 15% gas share in the energy mix by 2030. The emphasis on alternative fuels, such as compressed biogas, and a grid system framework akin to solar energy will accelerate decarbonization goals. With the nation's net-zero target by 2070 in mind, we expect Budget 2024 to prioritize energy transition practices”, says Rahool Panandiker, Managing Director and Senior Partner, BCG.

“The Union Budget 2024 is anticipated to introduce significant changes in taxation structure. Taxation changes aimed to simulate consumption are likely to also give a boost to volume growth which has been below potential. Continued investments in physical and digital infrastructure would help in bringing greater efficiency and expansion of the consumption opportunities. A push towards unlocking rural –consumption, physical infrastructure and address farmer earnings, would really benefit the consumer sector”, says Namit Puri, Managing Director & Senior Partner, BCG.

Top 10 Largest Economies In The World: India is all set to become the world’s third largest economy in the coming few years. But what is India’s current ranking in the world’s top 10 economies by nominal GDP size? Where do America and China stand? Did you know that at the current level, the USA's GDP is 7 times that of India? Budget 2024 is expected to focus on keeping India on the path to become the third largest economy.

“Industry stakeholders are looking forward to an extension of the Production-Linked Incentive (PLI) schemes to cover additional sectors. Currently, the scheme benefits sectors such as electronics, pharmaceuticals, and textiles. Expanding it to include areas like semiconductors, renewable energy, and advanced automotive components could significantly strengthen India's manufacturing capabilities. An increase in budget allocations for existing PLI sectors is also expected to maintain and build on current progress, “ says Ankur Gupta, Practice Leader - Indirect Tax at SW India.

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, saw record closing highs in trade on Monday. While BSE Sensex closed above 80,600, Nifty50 was above 24,550.

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Budget 2024 expectations: Ahead of the upcoming Union Budget 2024 presentation on July 23 by Finance Minister Nirmala Sitharaman, the government is weighing a proposal to significantly raise the minimum guaranteed amount under its flagship social security initiative, the Atal Pension Yojana (APY).Currently, the scheme offers a guaranteed minimum pension ranging from Rs 1,000 to Rs 5,000 per month, depending on the subscriber's contributions. However, in a move aimed at enhancing social security benefits, the Modi government is contemplating doubling this amount to Rs 10,000 per month.

Stock market today: In the week preceding the Union Budget 2024, Indian equity benchmark indices, BSE Sensex and Nifty50, are trading near their lifetime highs. Today, at 2:37 PM, BSE Sensex was trading at 80,733.66, up 214 points or 0.27%. Nifty50 was at 24,603.00, up 101 points or 0.41%.

Budget 2024 expectations: To stimulate consumer demand, the government may consider increasing the standard deduction limit for taxpayers under the new tax regime, which offers lower rates without exemptions, says Nomura citing reports. There could also be a rise in the exemption threshold for income derived from bank interest, it says.

Budget expectations: The Modi government is looking to assure central govt employees who are part of the National Pension System of 50% of the last pay drawn as pension as it seeks to address their concerns over the payout. This is despite the scheme for those recruited from 2004 currently offering high returns for those who stay invested for 25-30 years.

A committee headed by finance secretary T V Somanathan had been set up after an announcement by finance minister Nirmala Sitharaman. While the Centre has ruled out a return to the Old Pension Scheme (OPS), it kept the window open to provide a certain level of comfort at a time when Congress was announcing a reversal of a decision taken by the Manmohan Singh government.

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Budget 2024 expectations: Union Budget 2024 to be presented by Finance Minister Nirmala Sitharaman on July 23 should look at increasing the private sector participation in airports and Indian Railways projects, says Kuljit Singh, Partner, EY India. Asked about his key expectations from the Budget 2024, he told TOI, “India’s upcoming budget must address critical infrastructure reforms to propel economic growth and sustainability. Key expectations include ramping up private participation in airports and railways by inter-alia privatizing existing airports, privatizing or listing Dedicated Freight Corridor (DFC) corridors.”

Ahead of the Union budget presentation on July 23, Prime Minister Narendra Modi last week held a meeting with finance minister Nirmala Sitharaman and economists. The meeting was also attended by planning minister Rao Inderjit Singh, and chief economic advisor V Anantha Nageswaran. Additionally, economists Surjit Bhalla and Ashok Gulati were present, along with experienced banker K V Kamath and other notable individuals.

"As we approach the budget 2024-25, the EV industry is eagerly anticipating several key measures to drive growth and adoption. Increased subsidies will make electric vehicles more affordable for a broader range of consumers, fostering widespread adoption. Expanding the network of charging stations, especially those powered by renewable energy, is essential for supporting the EV infrastructure and addressing range anxiety. Reducing the GST on batteries and components will lower costs, making electric vehicles more accessible to the masses. Simplifying financing options for EV purchases will further encourage adoption by easing the financial burden on consumers. Promoting fleet electrification can significantly cut emissions and showcase the viability of electric vehicles for commercial use. Export incentives will help Indian EV manufacturers compete globally and expand their market reach. Additionally, skill development programs are vital for building a knowledgeable workforce to support this growing industry. Enhanced R&D grants and support for innovation in EV technology will ensure India remains at the forefront of the global EV revolution. We believe these measures will collectively propel the EV sector towards a sustainable and prosperous future,” says Kunal Arya, Co-Founder & Managing Director, ZELIO Ebikes

Increase in the limits of various exemptions and deductions is one of the prime expectations of the individual taxpayers from any Union Budget. Here are some of the expectations of individual taxpayers from the Union Budget 2024 to be presented on 23 July 2024.

Budget 2024 expectations: According to KPMG, there are changes in the work culture such as work from home, hybrid work, work from anywhere for salaried employees where employee incur higher work-related personal expenditure (like higher electricity, air conditioning, food etc.). “Further, there has been a significant rise in medical expenses, fuel costs and the overall inflation. Keeping in mind the increase in personal expenditure it is popularly expected to enhance the standard deduction to Rs 1 lakh from the existing limit of Rs 50,000,” says KPMG