Budget 2024-25: FM Sitharaman to Present Union Budget Tomorrow, Key Timings and Sectoral Expectations

On Tuesday, July 23, Finance Minister Nirmala Sitharaman will present the Union Budget 2024-25 in the Lok Sabha. This will be her seventh consecutive budget, a milestone previously achieved only by C D Deshmukh. The budget is expected to align with the Viksit Bharat 2047 Vision while maintaining fiscal prudence.

Ahead of the budget presentation, the National Democratic Alliance (NDA) held a crucial meeting to discuss floor management and strategies to counter opposition narratives. All MPs have been instructed to be present in the House, and common points will be shared with all allies to ensure unity after the budget is presented.

Budget Expectations: Income Tax

Significant changes in income tax are anticipated. Sitharaman is expected to raise the exemption and standard deduction limits. The government may move towards a 'Single Hybrid Tax Regime' as new taxpayers are already in the new tax regime. The exemption slab in this regime might be extended from ₹3 lakh to at least ₹4 lakh.

For established taxpayers with incomes over ₹15 lakh who prefer the old regime, incentives might be introduced to encourage them to shift to the new regime. A new slab for incomes between ₹15 lakh and ₹18 lakh with a tax rate of 25% could be proposed. Additionally, the standard deduction for salaried taxpayers is expected to increase to ₹1 lakh.

Real Estate Sector

The real estate sector has high hopes from this budget, seeking tax reliefs and affordable housing initiatives. The sector is pushing for 'industry' status to attract investments and streamline regulations. Raising the interest deduction limit on housing loans under Section 24B from ₹2 lakh to ₹5 lakh is a key demand.

The government might reduce the holding period for capital gains on real estate from 24 months to 12 months and lower the long-term capital gains tax rate from 20%. The sector also wants more inclusive criteria for affordable housing, currently based on property cost (₹45 lakh), carpet area (60 sq. m to 90 sq. m), and homebuyer income (EWS/LIG).

What Industries, Including MSMEs, Expect

The government has focused on expanding clean technologies and supporting industries, especially startups and MSMEs. The industry expects improvements in infrastructure and lower production costs for MSMEs. Upgrading power infrastructure in industrial areas and simplifying labor laws are necessary steps.

Streamlining pollution control clearances and reducing compliance costs are also key expectations from this budget. These measures aim to foster growth and make operations smoother for businesses.

Economic Survey 2023-24

Sitharaman tabled the Economic Survey 2023-24 on Monday, setting the stage for the Union Budget 2024-25. It projected India's economic growth at 6.5%-7% for the financial year 2024-25, with inflation at 4.5%. The survey remained optimistic about India's growth prospects, focusing on job creation and skill development.

Prime Minister Narendra Modi remarked, "The Economic Survey highlights the prevailing strengths of our economy and showcases the outcomes of the various reforms our government has brought. It also identifies areas for further growth and progress as we move towards building a Viksit Bharat."