Budget 2024 Expectations: From Revisions in Income Tax Slabs for Relief to Middle Class to Reductions in Corporate Tax Rates for MSMEs, Here Are Projections To Watch Out For
As India gears up for the first full-year Union Budget under the NDA government post the 2024 elections, stakeholders across various sectors eagerly await strategic reforms and budgetary allocations. Let's have a look at Budget 2024 expectations.
Mumbai, July 17: As India gears up for the first full-year Union Budget under the NDA government post the 2024 elections, stakeholders across various sectors eagerly await strategic reforms and budgetary allocations. A recent research note by Fisdom Research highlights the anticipated measures expected to shape FY25, focusing on critical areas such as infrastructure, defence, rural development, healthcare, and taxation. These measures aim to catalyse economic growth, enhance social welfare, and bolster various sectors, aligning with India’s comprehensive development and prosperity vision. Let's have a look at Budget 2024 expectations.
Finance Minister Nirmala Sitharaman participated in Tuesday's traditional ‘halwa’ ceremony in a significant step towards the budget's finalisation. This ceremony marks the final preparation phase for the Union Budget 2024-25. It involves preparing and serving the traditional dessert ‘halwa’ to the finance ministry officials and staff involved in the budget preparation. The event took place in the basement of North Block, the location of the finance ministry in New Delhi, and was attended by the finance minister and other senior officials. Union Budget 2024-25: Infra Push, Structural Reforms for Sustainable Growth Key Industry Wish-List.
Budget 2024 Expectations
Personal Income Tax
Expectations are high for revisions in income tax slabs to provide relief to the middle class. Potential increases in basic exemption limits and adjustments to tax thresholds are anticipated. The BJP manifesto’s emphasis on enhancing disposable income for the middle class aligns with the interim budget and hints at tax structure rationalisation to support economic activities. Sectors benefiting from increased consumer spending, including consumer goods and retail, may see potential growth opportunities for stocks such as Hindustan Unilever, Nestle India, Marico, Avenue Supermart, and Titan Company, noted Fisdom.
Corporate Tax
Anticipations include potential reductions in corporate tax rates for MSMEs to bolster growth and sustainability. Emphasised in the BJP manifesto, these measures aim to support MSMEs and startups as pivotal drivers of economic growth and employment. Investors monitoring this sector may consider stocks such as HDFC Bank, Kotak Bank, and Axis Bank, which are well-positioned to capitalise on a competitive tax environment aimed at attracting investments and boosting industrial growth, it predicted. Union Budget 2024-2025: Budget To Strengthen ‘Viksit Bharat’ Narrative, Focus on More Job Creation, Says Report.
Tax on Online Gaming and Esports
The online gaming and esports ecosystem in India is hoping for a boost from the upcoming Union Budget, set to be presented on July 23, as high taxes threaten to hinder growth. The online gaming industry in India has experienced rapid expansion, driven by increased digital reach, the adoption and rise of the 5G network, and pandemic-induced changes in user consumption patterns. According to an EY report, India had approximately 455 million gamers in 2023. Industry stakeholders are eagerly awaiting budgetary measures that could alleviate tax burdens and support continued growth in this burgeoning sector.
All eyes are now on July 23 when Nirmala Sitharaman will table the Budget in the Parliament during the Monsoon Session kickstarts on July 22. For updates on all news related to the Budget, follow LatestLY.
(The above story first appeared on LatestLY on Jul 17, 2024 08:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).