Expectation from Union Budget 2024 Archives

Expectations from the Union Budget 2024-25: An Interim Budget Introduction The Union Budget 2024 is to be presented by Finance Minister Nirmala Sitharaman on February 1, 2024, and is anticipated to be an "Interim Budget" which means a temporary budget or trial budget until the general elections, ruling out any significant announcements. This interim budget is going to address tax deductions, changes in tax slab, capital gain, TDS compliance for home buyers, infrastructure investment, fiscal deficit, etc. The full budget is expected to be presented in July after the new government comes to power. In this blog, we will walk you through the key highlights that are going to be discussed in the Union Budget of 2024. Key Expectations from the Upcoming Union Budget 2024 1. Changes in Income Tax Sectors Individuals can now enjoy relaxation in income tax rates as the government is expected to increase the threshold amount for each tax slab or reduce the rate of tax slabs. Tax Slabs Tax Rate Upto 3 Lacs NIL Rs. 3-6 Lacs 5% Rs. 6-9 Lacs 10% Rs. 9-12 Lacs 15% Rs. 12-15 Lacs 20% Rs. 15 Lacs and above 30% The standard deduction for salaried individuals is expected to increase from 50,000 rupees to 1 lakh rupees. Salaried individuals will expect a new deduction specifically for repaying home loans, along with increased allowances in Sections 80C and 80D. Measures will be taken to incentivize the transition to the new tax system for home loan borrowers. To encourage individuals to save more for their future, the government is expected to raise the limit for Section 80C from the current Rs. 1.5 lakhs. The tax deduction limit in Section 80G is going to increase from ₹25,000 to ₹50,000, for individuals and from ₹60,000 to ₹75,000 providing a higher scope for claiming deductions on expenses such as medical insurance premiums and education loans. 2. Simplify the TDS compliance process for home buyers The current process of deducting 1% TDS on property purchases exceeding INR 50 lakh needs to be simplified, especially for Non-Resident Indian (NRI) sellers. Non-resident Indian (NRI) sellers face more complexity in the TDS process compared to resident sellers. 3. Changes in GST Law The Interim Budget 2024 is expected to focus on streamlining Customs law compliance rather than GST law. While the GST Council meetings predominantly address GST law, there may be amendments to the Central GST Act to align with recently passed GST Rules. In the upcoming budget, a revised annual GST return form is expected to be introduced, allowing taxpayers to rectify errors in the GSTR-9 form, particularly for B2B transactions. This measure will aim to prevent unnecessary scrutiny by tax officers due to errors in the originally filed returns. A new reverse charge-based mechanism will be implemented for better GST compliance. Buyers who are large taxpayers with turnovers exceeding Rs.100 crore or Rs.500 crore will be able to directly pay GST dues to the government instead of their small vendors. 4. Capital Gain Tax The current capital gains tax regime is complex and poses challenges for investors due to various factors such as asset classes, holding periods, tax rates, and residency status. To simplify this process, the government should streamline the classification of equity and debt instruments, unify tax treatment for listed and unlisted securities, and simplify indexation provisions. 5. Bengaluru to be eligible for HRA deduction Despite being recognized as a metro city by the Indian Constitution, Bengaluru is classified as a non-metro for income tax purposes. This classification limits the House Rent Allowance (HRA) deductions for Bengaluru residents to 40% instead of the 50% available in other metro cities. To rectify this discrepancy, Bengaluru should be considered a metro city for HRA exemption purposes. This adjustment would ensure that Bengaluru residents receive the same HRA benefits as residents of other metro cities and provide them with the necessary financial support for their housing expenses. 6. Fiscal Deficit Budget 2024 is expected to bring about significant changes in the fiscal deficit. It is projected to be lower than the previous year's target of 5.9 % of GDP. Additionally, estimates for FY25 indicate that the fiscal deficit will range between 5.4-5.5 % of GDP. However, these estimates are contingent upon the government's ability to increase revenue and effectively control subsidy provisions. 7. Other Expectations The budget may include measures to promote green growth and reduce the country's carbon footprint. The government has been taking steps to promote renewable energy and reduce the country's dependence on fossil fuels. The travel and tourism industry experts expect positive changes in the upcoming interim budget. The National Pension System (NPS) could receive tax concessions on contributions and withdrawals, especially for senior citizens above 75 years. The upcoming interim Budget may announce a significant increase in the agricultural credit target for the next fiscal, aiming for ₹22-25 lakh crore. The concessional 15 percent income tax rate for corporations setting up new manufacturing units could be extended for one more year till March 31, 2025. Expecting a complete regulatory framework for cryptocurrencies following the successful G20 Summit discussions on the topic. The Railways department may receive a budget allocation of around Rs 3 lakh crore, with plans to produce 400+ fuel-efficient Vande Bharat trains. The pharmaceutical sector hopes for a substantial budget allocation considering its scale, success rate, high risk, and economic factors. Many developers in the real estate sector are hoping for a reduction in interest rates on project finance. The government is expected to support the current momentum by implementing initiatives that improve the affordability index, such as increasing the limit for tax deductions for home loan interest and implementing the interest subvention scheme for urban housing. Conclusion In conclusion, these are the expectations from different sectors. This time the Union Budget is going to focus on individuals and rural areas rather than companies. As the interim budget, it may not include spectacular announcements, but it will offer valuable insights into the government's economic priorities and strategies like tax slabs, tax deductions in medical expenses under Section 80G, fiscal deficit etc.

For Indian Entrepreneur

For Foreign Entrepreneur

Special Entities

Tax Registrations

Other Registration

Returns

Annual Filings

Change Services

Closure

Legal Drafting

Special

Trademark

Copyright

Patent

Designing & Marketing

Blog

Union Budget 2024-25: An Interim Budget

Hi, Welcome to EbizFiling!

HOME

POLICY

RELATED LINKS

CONNECT WITH US

TOP 3 READS

All need to know about Trademark infringement

LLC vs. Corporation: Start your company in US

Duties of an Auditor in a Company

Secure Payment Modes

US payroll services in India
UK Business Outsourcing Process in India
File CRF Form to change Master Data on MCA
Reply to Notice Under Section 148 of Income Tax Act
Reply to Notice u/s 143(2) of Income Tax Act for Scrutiny Assessment
Reply to Intimation Notice under section 245 of Incone Tax Act
Reply to Defective Notice u/s 139(9) of Income Tax Act
Reply to Income Tax Notice u/s 143(1)(A) for Prima Facie Adjustment
Reply to intimation notice of Section 143(1) of Income Tax Act
Reply to Income Tax Notice Under Section 133(6)
Corporate Legal Advice
LEI Code Registration
Employee Background Verification
US Business Solutions and Outsourcing Services in India
Offshore Staffing Services in India
SEO Services in India
Content Writing Services in India
Annual Filing & Book-keeping & Accounting Service for Proprietorship Firm
ITIN Registration in the USA
File Form 10BD Online under Income Tax Act
Wall Designing
Virtual Office in India
Form 15CA Online Filing – Income Tax
NGO Darpan Registration
Overseas Direct Investment (ODI) through Automatic and Approval Route
HR Hiring and Recruitment Services in India
FCRA Registration Online in India
File Form CSR 1 online
Drop-Shipping Business in India by Foreigners
OPC Registration in India by an NRI
LLP Registration in India by an NRI
Company Registration in India by an NRI
Digital Marketing Services
Business Advisory Services
Run your operations / company in India without any liabilities
Right Issue of shares / Right Offerings
Application for the Extension of Name Reservation
Company Annual Filings in XBRL filing mode in India
Payment of TDS return on purchase of property (form 26QB)
ISO Certification in India
Add A Director
Accounting and Compliance Services for Start ups, Small companies, LLP and OPC (Micro Retainership Services)
FLA Return Filing Online to RBI in India
Foreign Direct Investment through Automatic and Direct Route
Form GSTR 1
Maharashtra Professional Tax
Premium Retainership Services in India
RBI Form FC-GPR
Charge Registration on property
RBI Form FC-TRS
E-Commerce Business
Logo Design Services
CMA Report Preparation
Startup Advisory Services
Trademark Registration / Brand Registration in the USA
Trademark Registration / Brand Registration in UK
Trademark Registration / Brand Registration in Malaysia
Income tax section 80g(5) registration
12AA & 12A Registration Process
Search Report ROC
Trademark Watch Services
GSTR 9C filing by CA- GST Annual Audit due date, GSTR 9C FAQs
Tax Consultancy Services
File ROC Form DPT 3 Return of Deposits
Surrender of DIN
Trademark Registration Process
Online LLP Registration and Complete Procedure
LLP Registration Procedure – copy
LLP Registration Procedure – copy
Hire Purchase
Contract Manufacturing Agreement
Web Development Agreement
Sole Selling Agreement
Underwriting Agreement
Mortgage Deed
Agreement Appointing A Common Arbitrator
Deed of Wakf-Alal-Aulad
Specific Power of Attorney
Foreign Collaboration Agreement Drafting
Joint Venture Agreement
Non- Disclosure Agreement
Franchise Agreement
Agreement to Sell Business
Vendor’s Agreement
Exclusive Distributorship Agreement
Shareholders Agreement
Consumer Complaint Letter
Power of Attorney
Company Name Change
Appointment of Auditors
Removal/Resignation of Director
GST Cancellation
GST LUT Letter of Undertaking
Conversion from Private Limited Company to Limited Liability Partnership (LLP)
Business Plan Preparation (Project Report)
Book-Keeping & Accounting
Payroll Setup & Processing
Trademark Rectification
Trademark Opposition
Trademark Renewal
Trademark Withdrawal in India
ESI Returns
PF Returns
भारत में कंपनी पंजीकरण / रजिस्ट्रेशन
Company Registration in India
TDS Returns Revision
Removal of Charge
Modification of Charge
Creation of Charge
MOA/AOA Printing
MOA/AOA Amendment
IEC Modification
Change of Registered Office Address
Producer Company
OPC to Private Limited Company
Conversion of Sole Proprietorship to OPC
Sole Proprietorship to Partnership firm
Conversion from Proprietorship to LLP
Conversion of Proprietorship to Private Limited Company
Conversion of Public Limited Company to Private Limited Company
Private Limited Company to Public Limited
Conversion of Partnership to Private Limited Company
Conversion of LLP to Private Limited Company
Conversion of Partnership to LLP (Limited Liability partnership)
Nidhi Company
Del Credere Agreement
Lease deed
FIND GST RATE, HSN CODE & SAC CODE
Public Limited Company
MCA Companies Fresh Start Scheme
MCA LLP Settlement Scheme 2020 (LSS 2020)
DIR 3 E KYC
A Quick guide to company registration in Bangalore
Apply for FSSAI license or Food license in India
Dormant Company Status Application
Trademark Registration in India
Conversion From Registered Partnership To LLP
Conversion From Registered Partnership To Private Limited Company
Change in Registered Office of LLP
LLC Annual Compliances in Wyoming, USA
LLC Annual Compliances in Florida, USA
LLC Annual Compliances in Delaware, USA
Company Registration in Indiana
Company Registration in California
Company Registration in New Mexico
Company Registration in New York
Company Registration in Texas
Company Registration in Wyoming, USA
Register Company in Florida, USA
Company Registration in Delaware
Company Registration in USA
Company Registration in Malaysia
Company Registration in UK
Conversion of Private Limited Company to OPC
Opening a Branch in India by a Foreign Company
Nidhi Company Annual Filing
Trademark Registration in Mumbai
Private Limited Company registration in Mumbai
MicroFinance Company registration
Register a company in India from UK
Register a company in India from Germany
Register a company in India from France
Register a company in India from US
Register a company in India from Canada
Register a company in India from UAE
Register a company in India from Singapore
Register a company in India from Australia
Private Limited Company
Private Limited Company Registration
Private Limited Company Registration
Limited Liability Partnership Registration in Mumbai
Limited Liability Partnership
Secretarial Compliance Services
Revival of Struck Off Company
Limited Liability Partnership
Sole Proprietorship Firm Registration
Partnership
Hindu Undivided Family (HUF), HUF Deed
Conversion into LLP
One Person Company (OPC) Registration in Mumbai
One Person Company (OPC)
One Person Company (OPC)
One Person Company (OPC)
Non Profit Organization
Limited Liability Partnership
Indian Subsidiary
Company Registration in India- Know how to open a Company in India
Company Registration Process in India for Foreigner- Know How to Open a Company in India
International Trademark Registration Under Madrid Protocol
Trademark Registration – copy
Trademark Registration
Trademark Objections
Trademark Assignment
Copyright Application
Provisional Patent
Patent Search
Patent Registration
Surrender IEC License Online in India
Renewal of IEC License
IEC Registration in Mumbai
IEC Registration
Add/Remove a Partner in LLP
Change in DIN
Digital Signature
DIN Application
Conversion of Section 8 Company to Private Limited Company
DPIIT Startup Recognition certificate
E-Form Commencement of business certificate(form-20a)
Aadhaar Udyog Online Registration
New Form INC-22A
SSI/MSME/Udyog Aadhar Registration
PAN Application
TAN Application
GST Modification
GST Registration
EPF Registration
ESIC Registration
Change in Directorship
Increase in Authorized Capital
Change in LLP Agreement
LLP Name Change
Share Transfer & Transmission
Annual Filing For Trust in India
E-RCMC Registration under EPCES in India
APEDA (RCMC) Registration in India
ROC Annual Compliance for Producer Company
ROC Annual filing for Section 8 Company
ROC Annual filing for Public Limited Company
Annual Filing & Bookkeeping & Accounting Service for Partnership Firm
Private Limited Company Annual Filing
OPC Annual Filing
LLP Annual Filing
Strike Off Company
Strike Off LLP
Dissolution of Firms
Strike Off OPC
Appeal to CIT- File an Appeal to Commissioner to Income Tax
Reply to Scrutiny Assessment Notice u/s 143(3)
Reply to Income Tax Notice- Know How to Respond to IT Notices
Income Tax Returns
TDS Returns
GST Returns