Budget 2024-25 expectations: tax incentives, digital infra and agritech

Mr. Beas Dev Ralhan, CEO, Next Education say, “In the forthcoming budget, we anticipate a targeted increase in the education budget with a specific focus on EdTech initiatives. This might involve allocating funds for the development of digital infrastructure, content creation, and training programs for educators in technology integration. Additionally, we hope to see tax incentives for EdTech startups, aiming to foster growth and innovation within the sector.To enhance both quality and accessibility, we look forward to the government establishing a comprehensive framework for evaluating and certifying EdTech content. This could include the implementation of national standards and the creation of accreditation bodies to ensure quality and prevent misinformation. Bridging the digital divide is another crucial aspect, where increased funding for rural broadband connectivity, affordable digital devices, and digital literacy programs will contribute to making online learning accessible to all.
Furthermore, we expect a proactive approach in fostering collaborations. Public-Private Partnerships (PPPs) between EdTech companies and educational institutions should be actively encouraged, leveraging expertise and resources for developing innovative solutions. Additionally, funding for research and development in EdTech, coupled with industry-academia collaboration, can be instrumental in driving innovation and elevating the overall quality of educational offerings.”

1. ‘’In 2024, as the confluence of dual degrees and the increasing interest in studying abroad reshapes the global educational landscape, Leverage Edu stands at the forefront. With the upcoming budget poised to reshape the higher education sector, we anticipate measures that will revitalize the study abroad sector, focusing on affordability, accessibility, and collaborative initiatives with global institutions. We actively contribute to this transformative journey, providing solutions that seamlessly integrate global perspectives into the Indian student’s learning experience. Moreover, we hope for forward-thinking financial policies that extend tax benefits to working professionals and especially parents, promoting savings and making international education more financially accessible.’’ – Attributed to Akshay Chaturvedi, Founder & CEO of Leverage.biz

1. ‘’This being a pre-election budget and as mentioned by the Finance minister herself, Startups in India can’t expect anything drastic and is largely to be a status-quo situation. However, it is noteworthy that the previous budget managed to attract an INR 100 Cr allocation for the National Sports University which I feel is a step forward in creating newer sports infrastructure. Of course, the development of the sector will need more capital, but it is an important step forward and can help lead to the creation of more jobs and facilities that can be the stepping stone for putting India as an important contributor in the World of Sports. We must create facilities to train and provide job opportunities to people. Coaches, Physios and other support staff are extremely important for the growth of a player, and enough capital must be allocated in the future to build this ecosystem.’’ – Attributed to Sudeep Kulkarni, Founder, Game Theory

1. ‘’While major announcements may hold off until after the 2024 General Elections, the upcoming 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.

Here are some of our top expectations:

Income Tax:

80D deduction limit

The deduction limit under Section 80D for medical insurance premiums should be increased from ₹25,000 to ₹50,000 for individuals and ₹50,000 to ₹75,000 for senior citizens, reflecting rising healthcare costs.

Ease TDS compliance for home buyers

Currently, 1% TDS is deducted on property purchases exceeding INR 50 lakh. While this process is straightforward for resident sellers (using Form 26QB), it becomes more complex for Non-Resident Indian (NRI) sellers. 

Simplification of capital gains taxation

The complexity of the current capital gains tax regime poses challenges for investors, with numerous factors to consider, such as asset classes, holding periods, tax rates, and residency status. 

Bengaluru to be considered a metro city for the purpose of HRA exemption

Despite being recognised as a metro city by the Indian Constitution, Bengaluru remains classified as a non-metro for income tax purposes, limiting HRA deductions to 40% for its residents instead of 50% available in other metro cities.’’ –  Attributed to Archit Gupta, Founder & CEO, ClearTax

1. As India strides toward global supply chain leadership, there’s an anticipation for government action on critical challenges like technology integration, geopolitical tensions, financial stability, and labor issues, pivotal for the nation’s progress. With robust governmental backing, the manufacturing sector can ascend to greater heights, expanding the nation’s market presence and global reach. We expect promising advancements for MSMEs, particularly in terms of financial aid, amplifying expectations for Budget 2024 as a crucial driver for their growth and development. – Attributed to – Mr. Akash Hegde, Co-Founder, ShakeDeal

1. As Jetsetgo Aviation Private Limited, we have several expectations from the budget in 2024.

Firstly, we hope that the government will address the customs issues faced by Non Scheduled Operators bringing aircraft on leases. Currently, there is no clarity on the customs tariff for these imports, and we face difficulties in filing Bill of Entry. We hope that the government will provide an exemption on customs for Non Scheduled Operators, similar to what is available for scheduled air operations.

 Also, we hope that the government will provide clarity on sale and leaseback transactions in the case of Gift City. Currently, there is no clarity on how custom duty will be applicable in such cases, and we hope that the government will exempt custom duty in case of sale and leaseback transactions involving Gift City companies.

Lastly, we hope that the government will bring aviation fuel under GST. This will greatly reduce the burden on the industry and improve the overall efficiency of our operations.

Overall, we hope that the government will address these concerns in the 2024 budget, so that we can continue to provide efficient and reliable charter and helicopter services across India. – Attributed to Kanika Tekriwal, Founder, JetSetGo

“Anticipating the upcoming budget, the MDF industry looks forward to a strategic allocation of funds for infrastructure, sustainability, and innovation. Acknowledging the import-cost disparity of around 25% is crucial, and bridging this gap is a pre-budget expectation to alleviate the burden on Indian MDF manufacturers. Addressing logistics, promoting exports, and ensuring fair customs duties, alongside measures to mitigate the impact of the 25% cost disparity in imports, will create a holistic environment. This approach will nurture a resilient MDF sector, fostering sustainable development and global competitiveness.”Attributed to Sunil Singh (CSO, MDF and Flooring of Greenpanel Industries Ltd)

TreadBinary

“Anticipating the Union Budget 2024-25’s stance on the technology sector, I hold high hopes for a progressive approach that underscores the significance of ‘Make in India.’ The emphasis on streamlining Advanced Pricing Agreements (APAs) and Mutual Agreement Procedures (MAPs) is pivotal, offering clarity that not only benefits multinational tech entities but also fosters an environment conducive to innovation and collaboration, aligning with the ‘Make in India’ initiative.

Within this context, the taxation structure surrounding royalty payments for leveraging technological capabilities gains paramount importance. A robust policy in this realm will not only stimulate technology transfer but also ensure equitable taxation, providing impetus to both domestic and foreign investments in our tech sector, fortifying the ‘Make in India’ vision.

The Union Budget holds the potential to go beyond fiscal frameworks; it stands as a beacon to incentivize homegrown innovation and strengthen our technological landscape. A well-balanced Budget will not only nurture innovation but also significantly contribute to the growth trajectory of ‘Make in India,’ solidifying India’s position as a global tech hub.”- Yuvraj Shidhaye, Founder and Director, TreadBinary

QueueBuster

“As a seasoned professional deeply embedded in the retail-tech industry, my anticipation for the forthcoming 2024-25 budget stems from its potential to revolutionize retail dynamics. This budget holds significant promise, particularly for businesses leveraging advanced retail technologies.

I foresee this budget offering crucial support for retail expansion, potentially streamlining the establishment of new physical stores through targeted infrastructure incentives. These measures could facilitate smoother entry and growth for brands, retailers & D2C players, fostering a more seamless retail environment.

I anticipate the budget’s impact in simplifying tax procedures and increasing funding accessibility, particularly benefiting businesses eyeing physical retail spaces. For those utilizing sophisticated retail technologies, like Point of Sale (POS) solutions, this support could amplify their growth trajectory within the retail realm. Furthermore, I look forward to the budget’s potential to address inflation and drive consumer spending, pivotal elements for sustained retail growth.”- Varun Tangri, Founder and CEO, QueueBuster

Attributed to Krishnendu Chatterjee, VP and Business Head at TeamLease Services

Budget expectations from BFSI Domain

1. Interest Rates: Hope for policies that ensure stable or reduced interest rates. Lower rates can stimulate borrowing and economic activity.
2. Liquidity Support: Especially after challenging economic periods, they might expect measures to ensure ample liquidity in the market. This could involve initiatives to ease credit flow, facilitate refinancing, or provide support during times of financial stress.
3. Regulatory Clarity: Clarity in regulatory frameworks and policies is crucial. They may anticipate measures that simplify compliance procedures, streamline regulations, or introduce reforms that support growth while maintaining financial stability.
4. Infrastructural Development: Investments in infrastructure projects can create opportunities for banks and NBFCs to fund these initiatives. Expectations for the budget might involve provisions for infrastructure development that can generate financing opportunities.
5. Digital Innovation and Cybersecurity: With the increasing digitization of financial services, they may hope for budgetary provisions supporting digital innovation and cybersecurity measures. Investments in technology and data security could be on their Wishlist.
6. Capital Infusion: For public sector banks especially, there might be expectations for capital infusion to strengthen their balance sheets and support lending activities.
7. Taxation Reforms: Expectations for tax reforms might include measures to rationalize tax structures, offer incentives for specific sectors, or simplify tax compliance procedures.
8. Support for MSMEs: Small and Medium Enterprises are crucial for the economy, and banks/NBFCs could anticipate budgetary support or schemes directed at enhancing credit availability to this sector.
9. Sustainable and Green Finance: With the global focus on sustainability, they might expect incentives or initiatives encouraging green financing, renewable energy projects, or sustainable development.
10. Financial Inclusion: The BFSI sector is expected to emphasize the need for continued efforts to promote financial inclusion and bring more individuals and businesses into the formal financial system. This could include measures to expand access to banking services, simplify account opening procedures, and provide financial literacy programs.
11. Emphasis on Healthcare and Social Security: Insurance companies may expect measures aimed at improving healthcare and social security systems. This could include initiatives to expand health insurance coverage, provide financial assistance to vulnerable populations, and promote preventive healthcare.