While major announcements may hold off until after the 2024 general elections, the upcoming Interim Union Budget presents an opportunity to address lingering concerns and set the stage for future economic growth.
It is most likely that this Budget would prioritise fiscal discipline and avoid populist measures. However, there is optimism for potential relief in the realm of personal income tax, particularly in the New Tax Regime.
Before that let’s understand what happened in the Budget 2023 in this front:
: This sets the tone for the next 25 years of India's growth.
Major announcement on Income Tax:
Now here are some of our top expectations for 2024:
Income Tax:
Additionally, extending Section 80D benefits to the new tax regime would promote equitable access to healthcare.
Goods & Services Tax:
Streamlining Customs law — The focus of the Interim Budget 2024 is anticipated to concentrate on streamlining Customs law compliance rather than GST law, which is predominantly addressed in GST Council meetings. While the Central GST Act may undergo amendments to align with some of the GST Rules recently passed, expectations for Budget 2024 include significant aspects.
The above proposals would ensure timely remittance of GST by large enterprises, enabling small businesses to file quarterly or half-yearly statements, reducing their monthly tax payment obligations. This change could also resolve challenges faced by large enterprises dealing with small vendors, as it shifts the responsibility of tax payment to buyers, facilitating smoother ITC claims and reducing administrative burdens associated with their following up with small vendors.
—The author, Avinash Polepally, is Senior Director at ClearTax. The views expressed are personal.
(Edited by : C H Unnikrishnan)
First Published: Jan 31, 2024 7:37 AM IST
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