Union Budget 2024-25 Expectations Live Updates: Allow Deduction Of Rs 50K For Life Insurance Annuity, Pension Products Under Income Tax

Union Budget 2024-25 Expectations Live Updates: While expectations are high on formation of New Income Tax Slabs that looks at lowering the tax bracket, there is high anticipation on items that will get costlier and cheaper. Check out.

New Delhi: Union Budget 2024-25 will be presented by Finance Minister Nirmala Sitharaman next week (23 July, 2024.), with all eyes glued to expected announcements from the FM that will have an impact on lives of all and sundry.

All Union Budget documents, including the Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill etc. will also be available on the “Union Budget Mobile App” for hassle-free access of Budget documents by Members of Parliament (MPs) and the general public using the simplest form of digital convenience. The App is bilingual (English & Hindi) and will be available on both Android and iOS platforms. The App can also be downloaded from the Union Budget Web Portal (www.indiabudget.gov.in). 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.

Will FM offer respite to the middle class and salaried individuals? Will there be relief on the HRA and home loan tax rebate front? This and more. Check Out The Key Expectations From FM Nirmala Sitharaman From Budget 2024.

22 July 2024

15:09 IST

Union Budget 2024 Expectations Live Updates: Tax Rebate Sought For Salaried Class

Dipesh Jain, Partner, Economic Laws Practice said that the salaried class should get respite on various personal taxation front. Among the basic asks were raising the limit of standard deduction, increasing rebate under 80C and hiking the tax slabs.

"It is expected that the standard deduction amount of INR 50K for salaried individuals would be increased. Tax rebate under section 80C should be increased from INR 1.5L to say INR 2L or 2.5L. Initial tax slabs with nil tax to increase under old and new tax regime to atlesst INR 5L from INR 2.5L and INR 3L, respectively," he said.

13:40 IST

Budget 2024 Expectations Live Updates: Reduce 18% Gst Rate On Essential Service Like Health Insurance

Prasun Sikdar, MD & CEO, ManipalCigna Health Insurance has said that reducing the GST bracket of 18 percent on health insurance.

"Our sincere submission to government is to reduce the current 18% GST rate on essential service like Health Insurance. Further, specific segment considerations are also required especially for middle-income and senior citizen segments who are struggling to meet the rising healthcare costs. Lowering the GST burden on the health insurance premiums will be a huge respite for missing middle and senior citizens to get access to quality healthcare they need and help to significantly boost insurance penetration across India by driving affordability,”  he said

12:36 IST

Union Budget Live Updates: Insurance Sector Demands Additional Deductions Under Income Tax

Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance has said that as an industry, some of the expectations from the finance ministry is to consider lower GST on life insurance products, additional deductions in insurance and pension products, and LTCG in all high value insurance plans

"In the pension products category, with the objective of securing post-retirement financial needs of the individuals, we urge the government to align life insurance annuity or pension products with the National Pension Scheme (NPS) and allow the similar additional deduction of Rs. 50,000 or more for life insurance annuity or pension products under Income Tax," he said.

17:51 IST

Union Budget 2024-25 Live: Boosting Growth In Chemical & Petrochemical Sectors

Mihir V Shah, Executive Director of Vipul Organics Limited, is hopeful that the upcoming budget will introduce incentives under the Production Linked Incentive (PLI) scheme specifically for the chemical and petrochemical industries.

“We hope that the budget focuses on bringing PLI in the chemical & petrochemical sector so as to propel growth, for both existing and greenfield facilities. In addition, development of quality infrastructure and chemical hubs with centralized waste and effluent treatment systems will bring India at par with the other manufacturing hubs. This will ensure that the sector continues to be an important participant in the India growth story” said V Shah.

14:10 IST

Union Budget 2024 Expectations Live Updates: Key Amendments To Boost Consumer Spending

Punit Shah from Dhruva Advisors suggests that the government should make changes to encourage consumer spending.

“It is recommended that the Government introduces amendments with an effort to stimulate consumer spending - key expectations include raising the tax-free income threshold, reducing tax rates for middle-income earners, increasing the standard deductions for the salaried employees, enhanced limits for Section 80C (investment-related deductions), and higher deductions under Section 80D for health insurance premiums. These measures aim to boost disposable income, aligning with inflation rates and encouraging higher consumer expenditure to invigorate the economy” added Shah.

21:05 IST

Budget 2024 Live Updates: Anticipated Measures To Empower MSMEs

Rajan Pental from YES BANK looks forward to the Union Budget 2024, expecting it to include measures that support the MSME sector which is vital for India's economic growth. 

“As we approach the Union Budget 2024, there is strong anticipation for comprehensive measures to empower the MSME sector, crucial to India’s economic growth. We expect the government to focus on expanding the ecosystem for new-to-credit borrowers, particularly through provisions under Informal Micro Enterprises (IME). Digital transformation remains a key priority. Investments in digital infrastructure and incentives for MSMEs to adopt modern technologies will improve operational efficiencies and market reach. Government schemes like PM Vishwakarma, PMJDY, and PMMY are essential in supporting MSMEs, particularly those finding it difficult to access credit” added Pental.

20:46 IST

Union Budget 2024-25 Live: Positive Macroeconomic Conditions To Boost Financial Market Growth

Puneet Maheshwari from Upstox expects that the upcoming Union Budget will benefit from favourable macroeconomic conditions which should drive growth in financial markets and support India's economic expansion goals.

“As we look ahead to the Union Budget, favorable macroeconomic conditions are expected to drive growth across financial markets, aligning with India's vision for economic expansion.  To encourage a diversified investment culture, the introduction of a Debenture Linked Savings Scheme (DLSS), similar to the Equity Linked Savings Scheme (ELSS), can help provide tax incentives for debt investments” said Maheshwari.

20:26 IST

Aam Budget 2024-25 India Live: Need To Reduce GST On Health Insurance Below 18%

Anand Roy, MD & CEO of Star Health Insurance, stresses the need to lower GST on health insurance below 18%, arguing it shouldn't be taxed more than luxury items.

“Reducing the GST on health insurance below 18% is imperative, as it should not be taxed higher than luxury goods. Health insurance for senior citizens should be taxed at the lowest possible rate. Additionally, we advocate for: increasing the tax deduction limit under Section 80D to Rs 50,000 for individuals under 60 years and Rs 75,000 for the elderly. Including personal accident policies under Section 80D and extending these benefits to the new tax regime would provide significant financial relief, promoting wider adoption of comprehensive insurance plans” added Roy.

19:56 IST

Budget Expectations Live Updates: Inclusion Of Labour-Intensive Sectors In PLI Scheme

Mohammad Athar (Saif), a Partner at PwC India hopes the Union Budget 2024 will include labour-intensive sectors in the Production Linked Incentives scheme to boost jobs and investment.

“With the Union Budget 2024 around the corner, the industry hopes the Government will include labour-intensive sectors in the Production Linked Incentives scheme, which would boost employment and capital infusion. For improving MSMEs access to target global markets, an effective and well-coordinated institutional structure for export promotion at Central, State (Around 5-6 key States have operational State Export Promotion Councils (SEPCs)) and District level is the need of the hour. Other key expectations include reconsidering the 45-day payment rule to approx. 60 or more days for enabling better cash flow management, extending the NPA classification period to 180 days, and revising the turnover criteria for TReDS registration” said Athar.

19:36 IST

Union Budget 2024-25 Live: Travel And Tourism Industry Awaits Major Growth 

Nishant Pitti, CEO of EaseMyTrip, highlights that the interim budget already increased allocations for tourism, focusing on improving infrastructure to boost domestic tourism and job creation.

“As India gears up for a full budget following the elections, the travel and tourism industry is poised for significant growth and development. The interim budget of February 2024 had already set a positive roadmap, with substantial increases in budgetary allocations for the tourism ministry, highlighting a clear focus on enhancing tourism infrastructure. This approach aims to boost domestic tourism and create new job opportunities.- The government's commitment to improving connectivity through new railway and port corridors, alongside the growth of air connectivity and airport infrastructure, aligns with the broader economic goals. These initiatives are expected to stimulate local economies and attract both domestic and international tourists”, Pitti added.

19:09 IST

Budget 2024 Expectations Live Updates: Chance to Accelerate Growth for India's MSME Sector

Divyesh Dalal, Managing Director at DBS Bank India, views the upcoming Union Budget as a chance to advance India’s MSME sector.

"The upcoming Union Budget presents an opportunity to boost the growth of India's MSME sector. Measures like Production-Linked Incentives, Export promotion, Digital India campaign, simplification of tax structure and Skill development will bolster the global competitiveness of MSMEs." stated Dalal.

18:36 IST

Budget 2024-25 Expectations Live: Advocating for a Comprehensive Strategy to Drive Ongoing Growth

Dhiresh Bansal, CFO at Meesho, advocates for a broad strategy to support continuous growth.

"To foster continuous expansion, we advocate for an all-encompassing strategy. Moreover, simplifying the processes associated with tax compliance and lowering tax rates, especially during the initial operational years, will ease the financial strain on startups, cultivating a more advantageous business environment" added Bansal.

17:58 IST

Budget Expectations Live Updates: Fiscal Deficit Target for FY25 Expected to Remain at 5.1% of GDP

Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd., expects the fiscal deficit target for FY25 to remain at 5.1% of GDP

"The fiscal deficit target for FY25 is likely to stay at 5.1% of GDP as per the interim budget. Emphasis will be on job creation through capital expenditure, targeted social spending, and the 'Viksit Bharat' initiative. The budget may also outline a roadmap for fiscal consolidation beyond FY26." Nanda said.

16:04 IST

Union Budget 2024 Expectations Live Updates: Increase In Interest Deduction Limit Under Section 24(b)

"To further encourage homeownership, the government should consider increasing the interest deduction limit under Section 24(b) from Rs. 2,00,000 to Rs. 3,00,000. This change would provide additional incentives for purchasing residential properties, supporting both individual financial health and the broader real estate market," Gupta said.

16:02 IST

Budget 2024 Live Updates: Much-needed Revision In Section 80C Limit 

Archit Gupta, Founder & CEO, Cleartax said that there is a much-needed revision in the section 80C limit which has not undergone any change in several years.

"The much-needed revision in the section 80C limit, which has remained unchanged since 2014 despite rising inflation rates. Such a revision would not only help taxpayers combat inflation but also stimulate savings and investments in key financial instruments like ELSS, tax saver FDs, PPF etc. aligning with the broader vision of a financially robust and prosperous India," Gupta added.

14:28 IST

Budget 2024 Expectations Live Updates: Key GST Reforms Expected

Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India said it is crucial to review the fine print of the specific changes in the laws, including notifications and circulars. 

"As the laws stabilise, the list of expectations will positively reduce in the upcoming years. Several changes were recommended, to give effect to which, the GST law would need to be amended like Proposed introduction of section 11A in the CGST Act; Retrospective amendment in section 16(4) of the CGST Act; Amnesty scheme under proposed section 128A of the CGST Act and further clarity on Online gaming industry, Multiplicity of investigating authorities and Clarity on the availability of MOOWR benefit for the solar sector amongst others," Prabhakaran added.

14:03 IST

Union Budget 2024-25 Live: Provide Certainty In Direct Tax Provisions

Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India said creating unnecessary tax burden and prolonged litigations for the re-insurance companies will create a direct stress on the solvency ratio of reinsurance companies which operate in the form of branch office in india. 

"These operational issues pose an image divergent from the ‘ease of doing business’ initiative in India. As of 2023, only 10 foreign reinsurance companies are operating in India out of total 139 foreign reinsurance companies in the world. Thus, with an endeavour for further developing the re-insurance business in India, providing certainty in direct tax provisions and relaxations would be the need of the hour. It would not only incentivize foreign reinsurers to enter the Indian market but also deepen the reach and awareness about insurance in the domestic front," he added.

13:27 IST

Aam Budget 2024-25 India Live: No Personal Income Tax Changes Expected

Jyoti Prakash Gadia, Managing Director at Resurgent India has expressed doubts, stating that personal income tax changes should not be expected. 

"No personal income tax changes  are expected to be announced across the board at this stage, although senior citizens and pensioners may get some relief," Gadia said.

12:27 IST

Union Budget India Live Updates: Give Emphasis To Women, Childcare

Sangita Reddy, Joint Managing Director, Apollo Hospitals Group said the government must prioritize the healthcare sector, giving equal emphasis to preventive care, women's health, infrastructure expansion, and child development.

"Strengthening infrastructure is crucial to effectively enhance health services in rural and remote regions, ensuring equitable access to health care. Increased support is expected from the government to achieve this goal," said Dr Reddy.

10:39 IST

Budget Expectations Live Updates: Insurance Sector Seeks Reforms 

Dhirendra Mahyavanshi, Co-Founder and CEO of Turtlemint said that the insurance sector awaits initiatives set to propel the insurance sector towards inclusive growth. 

"With amendments aimed at achieving 'Insurance for All by 2047', we envision a transformative era. We anticipate provisions such as composite licenses, enhanced capital frameworks, and streamlined regulations that foster innovation while ensuring policyholders' interests are safeguarded. These reforms are poised to unlock new opportunities in micro-insurance, agriculture coverage, and regional initiatives, reinforcing the industry’s commitment to customer-centric innovations," Mahyavanshi added.

10:14 IST

Union Budget 2024 Expectations Live Updates: FM Should Allocate Funds On Welfare Spending 

Mohit Khanna, Fund Manager at Purnartha One Strategy has said that if the FM chooses to re-distribute a part of the interim budget spending allocations in favour of welfare spending and use RBI’s payout to lower fiscal deficit target even more, then it could be a shot-in-the-arm for the economy. He highlighted the following causes:

Continued capital expenditure outlay for Power, Railways, and Infrastructure sector.

o   Maintaining percentage allocation in Jal Jeevan mission

o   Vande Bharat trains, new cities to get Metro connectivity

o   Incentives to hydro and wind power projects

o   Higher allocation to PMAY – both urban and rural

09:31 IST

Budget 2024 Expectations Live Updates: Emphasis On Tax Reforms A Must

Ankur Gupta, Practice Leader - Indirect Tax at SW India has highlighted the need for spurring economic growth, encouraging domestic investments, and simplifying tax procedures and compliances. He said, "Addressing these areas is likely to attract investments in crucial sectors and streamline administrative processes, thereby enhancing overall tax management efficiency."