Union Budget 2024-25: Residential and Commercial Real Estate Braces for Higher Taxes on Property Sales
The Union Budget 2024-25 has introduced pivotal changes and strategic investments that promise to significantly impact the real estate sector. While the removal of indexation benefits for properties purchased after 2001 signals higher tax burdens for property sellers, the budget simultaneously unveils substantial allocations and reforms aimed at fostering growth and development within the industry.
Budget Highlights Impacting Real Estate
The budget has notably allocated Rs. 10 lakh crore under the PM Awas Yojana-Urban 2.0, targeting the housing needs of 1 crore poor and middle-class families. This landmark allocation is expected to boost the affordable housing segment and create millions of jobs. Additionally, Rs. 11.11 lakh crore has been earmarked for infrastructural development, with a focus on transit-oriented development and the innovative PPP model for rental housing in urban centers.
Industry Leaders React
Mr. Mohit Goel, Managing Director of Omaxe Group, praised the budget's comprehensive approach: "Budget 2024 stands out for its people-centric vision and powerfully advancing affordable housing in urban areas with a landmark allocation of Rs. 10 lakh crore under the PM Awas Yojana-Urban 2.0. The allocation of Rs. 11.11 lakh crore for infrastructural development, along with the innovative PPP model for rental housing in urban centers and the strategic push for transit-oriented development showcases a forward-thinking approach. These initiatives will undeniably propel real estate development in the right direction."
"In essence, the budget represents a strategic economic boost, ensuring India's macro growth remains resilient amid global uncertainties. By prioritizing key sectors such as skilling, urban development, and infrastructure, this budget injects crucial energy and momentum into the economy," he added.
Rajjath Goel, Managing Director, MRG Group, highlighted the sustainability focus: "The Union Budget has made an unequivocal statement about its commitment to sustainable urban development, with a sharp increase in finances for projects aimed at improving connectivity and the quality of life in cities. There is a robust framework brought out in the new budget for integrating renewable sources of energy into housing projects in urban areas towards modernizing cities and accommodating the growing urban population effectively."
Mr. Harinder Singh Hora, Founder Chairman of Reach Group, reflected on the past year's success and future opportunities: "The real estate sector witnessed a phenomenal year in 2024. Stable interest rates, ample supply, strong economic growth, and the government's focus on infrastructure development all contributed to a significant boom. As we look towards the future, particularly with the retail sector poised for rapid expansion, ensuring commercial real estate policies that accelerate demand and growth which is further aligned with the government's commendable goal of promoting entrepreneurship is crucial. Reducing GST on construction materials and implementing a single-window clearance system would be a significant step forward."
Uddhav Poddar, MD, Bhumika Group, emphasized the impact on commercial real estate: "The emphasis on infrastructural development by allocating Rs. 11.1 lakh crores along with employment generation and skill development will boost real estate development and provide a fillip to the commercial segment. The promulgation of the PPP model for rental housing in urban centres, along with transit-oriented development (TOD), will also promote real estate development."
Prasoon Chauhan, Founder & CEO, Aurika Homes, focused on affordable housing and infrastructure: "A key highlight of the Union Budget 2024 is the allocation of ₹10 lakh crore to urban housing, which will significantly advance affordable housing and address the needs of middle-class homebuyers. Additionally, the recommendation for state governments to reduce stamp duty is commendable, providing substantial relief to millions of buyers by lowering registry costs."
Gurpal Singh Chawla, Managing Director, TREVOC, praised the budget's vision: "The budget embodies a powerful vision for India's future growth, and we are thrilled to see the government's strategic focus on infrastructure development, job creation, youth skilling, MSME support, and urban housing. The government's proposal to reduce stamp duty is a game-changer, offering significant relief to millions of buyers by reducing registration costs. This important move will undoubtedly fuel demand and invigorate the sector, sparking a new wave of growth."
While the removal of indexation benefits for properties purchased after 2001 introduces higher taxes for sellers, the Union Budget 2024-25 provides a balanced approach with substantial investments in affordable housing, infrastructure, and sustainable urban development. The strategic initiatives outlined in the budget promise to drive growth, create jobs, and enhance the overall real estate landscape, fostering a resilient and inclusive market for the future.
Rupak De, Senior Technical Analyst, LKP Securities.-
"The Nifty continues to remain volatile with a mild negative bias. On the daily chart, a small-bodied red candle has formed. However, the short-term trend remains positive as it closed above the 21-day exponential moving average. The Relative Strength Index (RSI) is showing a bearish crossover and is declining. Weakness might increase in the market in the short term if the Nifty falls below 24,350. On the higher end, resistance is seen at 24,600. A decisive move above 24,600 could trigger a meaningful rally in the market."
Manish Mehan, CEO & MD, TK Elevator India says:
"The Indian real estate sector is expecting the Union Budget 2024–25 to improve liquidity, such as enhanced funding for the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, which has been crucial in reviving stalled projects. It presents substantial steps under the PM Awas Yojana-Urban, and rural development initiatives are poised to significantly transform the housing landscape in India. With an investment of ₹10 lakh crore addressing the housing needs of 1 crore families and the construction of 3 crore additional houses, the elevator industry is set to witness a surge in demand, driving growth and innovation within our sector.
Moreover, the significant allocation of ₹11,11,111 crore for capital expenditure on infrastructure, along with the encouragement for the government to make similar contributions, highlights their commitment to strong infrastructural development. This increased effect will undoubtedly impact the elevator industry, offering us remarkable opportunities to improve urban mobility and support the evolving urban infrastructure".
Aparna Acharekar, co-founder, coto,* said, "The 2024-2025 Union Budget has kept women empowerment as one of the primary goals for the year and we, at coto, are pleased with the same. By giving a major push towards women-led participation, the budget focuses on encouraging more women into the workforce, thereby also boosting women entrepreneurship, which is aligned with coto's vision. The introduction of partnerships to formulate women-specific skilling programmes along with setting up of working women hostels and creches only showcases the government's strong commitment to empower young girls and women across socio-economic groups, further strengthening India's economy. In addition to this, the allocation of over ₹3 lakh crore for schemes benefiting women and girls highlights this dedication even further.
From an investment perspective, the removal of Angel Tax will allow for a more supportive environment for angel investment, ultimately benefiting the entire startup ecosystem and encouraging more entrepreneurship. We hope that these schemes and initiatives are implemented with a greater sense of dedication and urgency to meet the desired goals set for the future."
Sriram PH, Co-Founder & CEO at DaveAI
I believe Budget 3.0 is a forward thinking one, especially with a focus on digital infrastructure, innovation and research & development. The roadmap towards a developed country is promising for entrepreneurs building from India. The proposal to abolish the Angel tax will play a key part in facilitating an environment that boosts investments and ease of doing business. We expect robust implementation of initiatives proposed to enable a strong environment fostering deep technology investments in the country.
Akshat Rathee, Co-founder and MD of NODWIN Gaming:
We're happy to hear the Hon'ble Finance Minister's announcement to rollback the Angel tax for all investors in today's Union Budget. This move will create a vibrant environment for startups across the nation and is a major boost for Indian gaming and esports entrepreneurs, leading to more opportunities as well as higher engagement with the youth. The plan to simplify FDI rules and promote the use of the Indian Rupee for overseas investment is a promising approach that will encourage global entertainment giants to invest in India, further strengthening our position as a global cultural and entertainment destination.
For esports, focusing on enhancing sports infrastructure in Bihar is a positive step since the state has already shown its commitment to integrating esports into mainstream sports. This additional government support will help nurture young talent and promote esports as a new-age sport nationwide.
Additionally, reducing the BCD on mobile phones, chargers, and PCDA will make smartphones more affordable, which is fantastic for mobile gaming enthusiasts. This will boost mobile gaming adoption within the nation and further strengthen India's position in the global mobile gaming market, bringing us closer to becoming the largest. Overall, we're excited to dive into these opportunities to drive growth and make waves.
2. Roby John, CEO and Co-Founder of SuperGaming:
"Today's Union Budget, presented by Finance Minister Nirmala Sitharaman, offers multiple benefits to the country's video gaming ecosystem. The reduction in basic custom duty on mobile phones is a move that will make smartphones more affordable, which is excellent news for India's extensive mobile gaming community. For our upcoming game, Indus, and other games in the market, this means reaching a broader audience and accelerating growth in the mobile gaming sector.
Additionally, the removal of the Angel tax is a major boost for the entire startup ecosystem. This will give relief to more gaming and esports entrepreneurs who want to bring their innovative ideas to life, thereby strengthening the gaming and esports ecosystem in India. Overall, we are confident that these measures will propel India's tech and video gaming industry, bringing India's gaming culture forward".
Tarun Joshi, CEO and Founder, IGP.com, a global multi-category gifting products company
Quote: "Our honorable Finance Minister Nirmala Sitharaman has delivered a staid and fair budget for a record seventh time. The decision to abolish angel tax was long overdue, and will help boost the country's burgeoning startup sector. We greatly appreciate this budget's focus on artisans. The government has announced that it will set up e-commerce export hubs in PPP mode to enable MSMEs and traditional artisans to sell their products in international markets. This will help promote our local crafts and give it a global audience. The various measures such as credit guarantees and credit support will help MSMEs flourish. The interim budget announced a package that includes financing, regulatory changes and technology support for MSMEs and this budget has delivered by detailing out these provisions. Overall, we are reasonably happy with this budget.", said Tarun Joshi, CEO and Founder, IGP.com
2. Amitt Nenwani, Co-founder, Wahter, India's pioneering advertising and packaged drinking water brand
Quote: The proposal to abolish the angel tax for all classes of investors is a significant and welcome move that will undoubtedly bolster the Indian start-up ecosystem. This forward-thinking policy will ignite the entrepreneurial spirit and drive innovation across the country. By removing this financial hurdle, more investors will be encouraged to support emerging start-ups, thereby fueling growth and enabling India to become a global hub for innovation. At Wahter, we believe this change will pave the way for a more dynamic and resilient start-up environment, fostering creativity and enabling visionary entrepreneurs to turn their ideas into reality., said Amitt Nenwani, Co-founder of Wahter.
Yashraj Vakil, CEO of CaptainBiz, Access to credit continues to be a significant hurdle for MSMEs in India. The Union Budget 2024-25 places a strong emphasis on the upliftment of MSMEs and announces several financing -related programs to bridge the credit gap in the sector.
The introduction of the new collateral-free credit guarantee scheme, providing term loans up to Rs 100 crore, is a welcome announcement. This initiative will help manufacturing SMEs invest in equipment, technology upgrades, and capex planning. In turn, this will allow them to improve their output significantly and contribute more to India's exports, thereby enhancing their participation in the global value chain and strengthening India's position in international markets.
Additionally, the government's directive for public sector banks to build their in-house capability to assess MSMEs for credit is a positive step. These assessment models, based on the scoring of digital footprints and covering MSMEs without a formal accounting system, will help thousands of potential MSMEs without strong financial records gain access to finance. Furthermore, this move is expected to create room for innovation and collaboration between fintech companies and PSUs, enabling them to underwrite MSMEs more effectively.
These initiatives, along with the several other initiatives in the Union Budget 2024-25 are pivotal in empowering MSMEs, fostering innovation, and enhancing their global competitiveness. CaptainBiz is committed to supporting these efforts and driving growth in the MSME sector.
Krishnan Ramachandran, MD & CEO, Niva Bupa Health Insurance
“This budget has a forward-looking approach which aligns with government’s vision to build a ‘Viksit Bhart’. The strategic measures outlined in the budget, particularly those enhancing healthcare affordability and accessibility, reinforces our confidence in India's potential and inspires us to be an integral part of this transformative journey. The welcome move to fully exempt 3 life-saving medicines used for cancer treatment from custom duties will provide much needed relief to cancer-stricken patients and their families. Additionally, the proposed changes in the Basic Customs Duty (BCD) on X-Ray tubes and flat panel detectors with encourage local manufacturers.
The focus of the budget is on skilling the youth of the nation and making them industry-ready, thereby creating more employment opportunities for them. It will also ffacilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry and establishing creches. With its emphasis on infrastructure development, technological advancement, health, and inclusive growth, the budget underscores a commitment to building a prosperous and resilient nation.” – Krishnan Ramachandran, MD & CEO, Niva Bupa Health Insurance
Mr. Gayomard Driver - Executive Director & Group Chief Financial Officer Jeena and Company
"The logistics industry welcomes the 2024 budget and eagerly looks forward to its implementation. The budget addresses crucial aspects that the industry has been keen to see progress on – skilling of youth, empowering the MSMEs, manufacturing, and a comprehensive review of the rate structure for ease of trade.
The removal of duty inversion and reduction of disputes are significant positive steps. However, the main highlights are the continuation of focus on infrastructure i.e. the Rs 26,000-crore boost to road connectivity projects and the sanctioning of 12 industrial parks. The Government's commitment to maintaining strong fiscal support for infrastructure is commendable.
The establishment of the Gaya node along the Amritsar-Kolkata route is anticipated to greatly improve the Eastern Dedicated Freight Corridor. This development is expected to bring significant advantages to ports in eastern India over the medium term. Additionally, the enhancement of rural infrastructure and the support for an industrial corridor in the eastern region are vital steps forward. India's plan to establish dedicated e-commerce export hubs will streamline logistics, export clearances, and warehousing. These hubs, functioning as bonded zones, will reduce re-imports with private sector support.
Furthermore, the launch of Phase 4 of the PM Gram Sadak Yojana aims to provide all-weather roads to 25,000 rural habitats, enhancing connectivity. These numerous infrastructure improvements are anticipated to offer faster routes, more options for trade, increased connectivity to rural areas, and reduced costs of travel, sorting, and storing. They will also help reduce the turnaround time of delivery. Essentially, we can utilize smoother roads and shorter routes for transportation, moving away from the expensive and congested routes currently in use. Overall, we are optimistic about these announcements and their positive impact on the logistics sector."
Mr. Niranjan Kirloskar, Managing Director, Fleetguard Filters Private Limited, “The Union Budget presented today aligns well with the Government's vision of a Viksit Bharat. The budget highlights several positives aimed at boosting economic growth, employment, sustainability, and inclusive development.
Special focus and reiteration of skilling, employment, manufacturing, strong infrastructure development, agriculture, and R&D, among other mentions, should positively reassure companies to focus on investing in all levels of its employees – especially newer ones, and also concentrate on becoming future-proof, by investing in rigorous research and development.
In addition to the above, proposing a climate taxonomy or climate finance to encourage greener businesses and, in turn, create a greener economy in the long run, signifies the important role of Indian companies in the fight against global climate change and aligns with global ESG goals which can make Indian companies attractive for FDI.
Overall the government aims to balance economic growth with sustainability and inclusivity ensuring long-term benefits across various sectors.“
“The Indian economy is currently a magnet for high capital inflows and foreign direct investment owing to its consistent economic growth and extraordinary resilience to global volatilities and challenges. The reduction of corporate tax rate on foreign owned and controlled companies along with simplified FDI will promote investments from foreign institutional investors. India's rapidly expanding warehousing industry is set to attract significant foreign direct investment, promising substantial returns for investors and establishing the country as a highly profitable market. Additionally setting up of 100 infra nodes coupled with increased FDI will boost ‘Make in India’ resulting in leap in demand for industrial warehouses across locations.
The town planning schemes, the National Corridor Development Program underway, and a strong focus on infrastructure development will catalyse the growth of the entire supply chain industry. The focus on industrial parks will help reduce challenges like land acquisition, financing gaps and restrictive regulations to help seize the potential of key upcoming markets. Moreover, export hubs will be a great initiative for MSMEs to participate in global trade. The onus will be on private infrastructure companies to partner with government to set up enabling ecosystem. We also support the Government’s focus on the East to revitalize the region into an economic hotspot. All these initiatives will open up new avenues for advancements across industries, fuelling employment and contributing to India’s ambitious growth at the same time.
We applaud the government’s push towards creating favourable living arrangements for industry workers to encourage job creation and arrest the on-going attrition in the manufacturing and allied industries. The warehousing industry is equipped and willing to provide high quality accommodation facilities with partnership with the government to the workforce that bolsters the nation’s development. The investment in skill development and entrepreneurial schemes is commendable as it will allow Indian youth to specialize in world class skills and expertise inviting international giants to begin operations in the country. We hope that the government continues to improve on the ease of doing business and streamlines the regulatory environment for domestic and foreign institutional investors to participate in the booming warehousing sector.
– By Mr. Anshul Singhal, Managing Director, Welspun One & Chairperson of ASSOCHAM National Council on Logistics & Warehousing
Mr. Saif Khan, Chief Operating Officer, BSH Home Appliances India for your perusal if you plan to file any budget related stories.
“The Union Budget 2024 is a forward- looking roadmap for robust economic growth and social development. The overall budget has a strong focus on employment generation, skilling, innovation, inclusive human resource development, sustainability and better infrastructure that will pave the way for a more resilient and progressive economy. We are keen to be a part of this growth trajectory by leveraging opportunities to enhance our production capacity in India and offer innovative products that cater to the fast-evolving needs of households in India. Additionally, the enhanced allocation for the Pradhan Mantri Awas Yojana is a significant step towards achieving housing for all. This initiative not only addresses the critical need for affordable housing but will also stimulate future demand for home appliances. We are excited to align our strategic goals with Government’s vision of ‘Viksit Bharat’, further strengthening our localization and sustainability efforts. Our commitment to premiumization aligns with this vision, as we strive to provide our consumers with top-of-the-line home appliances that offer unparalleled performance and sustainability.
The policies introduced in favour of inclusive talent development spotlighting women and youth will open new avenues for the workforce especially since we are one of the younger nations in the world. At BSH Home Appliances, we believe in the power of diversity and inclusion as a driver of innovation and growth in the industry.”
Mr. Uma Shankar Patro, Senior VP - Finance, InfoVision
"InfoVision applauds the government's commitment to advancing innovation and digital transformation with the allocation of 5% of the Universal Services Obligation Fund towards telecommunications technology R&D. The renaming of this fund to Digital Bharat Nidhi highlights the critical role of a digital-first strategy in driving economic growth.We are particularly encouraged by the introduction of the Jan Vishwas Bill 2.0 and the incentives for states to adopt Business Reforms Action Plans and embrace digitalization. These initiatives are set to significantly enhance the ease of doing business and will have a profound positive impact on the IT sector, further strengthening India's digital economy. InfoVision fully supports these progressive measures and remains dedicated to contributing to and benefiting from these transformative efforts", said Mr. Uma Shankar Patro, Senior VP - Finance, at InfoVision.
Pradeep Shetty, President of FHRAI
The hospitality sector has been pinning high hopes on the Union Budget for 2024- 25 presented by Smt. Nirmala Sitharaman today, on the backdrop of the Government of India's stated vision of Viksit Bharat by 2047 and the critical role tourism industry holds in achieving it. However, there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a $ 3 trillion economy by 2047.
Some key demands of tourism & hospitality to revitalize the sector such as GST rationalization, granting of infrastructure status and bringing ease of doing business and policy reforms have not been considered in the budget once again, given the well accepted multiplier effect of tourism on employment and economy.
The hospitality sector is disappointed but not dejected as the overall focus on infra structure development, employment generation and skill development and development of religious tourism centres are the silver linings which will help the sector to tide over some of the critical challenges that it faces today.
The government's proactive perspective on enhancing tourism, particularly through the development of spiritual and cultural landmarks like the Vishnupath temple in Gaya and Mahabodhi temple in Bodhgaya is a commendable move that promises substantial economic and social benefits. Furthermore, the development plans for Rajgir and Nalanda represent a significant investment in promoting India's ancient historical and educational legacy. The government's commitment to supporting tourism in Odisha will not only highlight Odisha's unique attractions but also encourages sustainable practices that preserve the state's ecological balance and cultural heritage.
The focus of Budget 2024 on youth employment, skill development and job creation are welcome initiatives. The industry has been facing a shortage of skilled workforce, especially in the hospitality sector.
It is also laudable that the Honourable Finance Minister's Budget speech highlights the Governments' commitment to make India a premier global travel destination through targeted investment and strategic initiatives. Development of iconic spiritual sites along with promotion of cruise and beach tourism can be helpful in attracting both domestic and international tourists.
The Union Budget 2024, is a forward-looking budget that is aimed at driving economic growth for the country. The substantial reforms given in taxation on financial gains and the abolishment of the ANGEL tax will boost investment and stimulate economic activity. However, reforms and reliefs pertaining to AI and fintech industry would have been a welcome gesture to further propel one of the largest growth drivers in the India story. - Harshita Singh- Founding Business Head- Times Prime, Business Head - Cards
Budget Reaction 2024-25:
"The exemption of customs duty on cancer medicines is a significant step towards making healthcare more accessible and affordable. This will help patients access quality cancer care and will reduce financial burden on patients. However, custom duty on Radiation Therapy equipment and PET/CT scan equipment which are not manufactured in India should also have been exempted. Duty on these equipment eventually make patient care more expensive.
We also were expecting announcements on strengthening of public healthcare initiatives, particularly rural. Every section of the society deserves the best quality healthcare. On one hand we talk about heart transplantation and CAR T Cells therapy while on the other hand, the basic requirements for cancer care and cardiac care are missing. Those opportunities should have been created. As an Oncologist, I feel that the Government needs to look toward high end treatments like Radiation Therapy, and Bone Marrow Transplant and make these within the reach of the common man.
The government's employment-linked schemes are commendable. This year's budget has put significant focus on employment generation and skill development which will ensure that the youth remain more focused and work towards the country's growth," says Dr Raj Nagarkar, MD & Chief of Surgical Oncology & Robotic Services, HCG Manavata Cancer Centre (HCGMCC).
Media & Entertainment OTT: Kaushik Das, Founder and CEO of AAO NXT, East India's premier OTT platform:
"The 2024 Union Budget presents a forward-thinking approach, especially in the realms of technology, regional development, and digital innovation. The reduction of Basic Customs Duty on mobile phones and related components to 15% is a significant step that will lower costs and enhance accessibility to digital devices, which is crucial for platforms like AAO NXT. Additionally, the government's commitment to supporting the development of regional storytelling and the tourism sector, including backing the development of Nalanda in Bihar and extending support to Odisha's tourism, aligns perfectly with our vision to showcase Odisha's rich cultural heritage through digital content.
Moreover, the initiative to set up a ₹1,000 crore venture capital fund for space economy highlights the government's dedication to fostering innovation and technological advancement. This, coupled with the enhanced focus on employment-linked skilling programs and the emphasis on energy security, will undoubtedly create a conducive environment for startups and established companies alike. These measures will not only boost the regional OTT landscape but also propel us towards our goal of making AAO NXT a global platform for localized content.
Overall, the budget's focus on promoting digital infrastructure, regional development, and innovation reflects a robust framework for sustainable growth and positions India as a leader in the digital entertainment space."
Rajit Rathor, Chief Financial Officer, Star Air.
We heartily applaud the Union Budget 2024, especially its focus on bolstering the aviation industry. The government's pledge to improve infrastructure and offer tax breaks is a significant step in supporting the expansion of our sector. Improved infrastructure will lead to better operations, shorter turnaround times, and an enhanced passenger experience.
The Regional Connectivity Scheme (UDAN) allocation, although reduced, highlights the government's commitment to balancing budget constraints while still aiming to enhance regional connectivity. Moreover, the investment in infrastructure projects, such as new airports in Bihar, demonstrates a clear commitment to expanding access to air travel and supporting regional development. The introduction of better regulatory frameworks is another encouraging step. Simpler and clearer regulations will enable us to work more efficiently, guaranteeing dependability and safety while encouraging innovation in the industry. By adopting a progressive strategy, we will be able to adjust to the ever-changing demands of the global aviation sector, thereby increasing accessibility and convenience of air travel for all.
We are also pleased with the incentives proposed to boost MRO activities. This has been a challenge in the past, and these incentives will provide much-needed support to overcome it," said Rajit Rathor, Chief Financial Officer, Star Air.
“The Budget priorities such as employment and skilling, social justice and manufacturing are a step in the right direction to in pursuit of Viksit Bharat 2047 and the government has rightly renewed its focus on the focus on 4 major pillars: Poor, Women, Youth and Farmer.
I genuinely think the Budget holds great promise in terms of addressing the labour and skill shortage, which is the need of the hour for labour intensive sector like textiles. Further, the announcement of a 3 lakh crore corpus for women-centric schemes will increase their participation in the workforce. The plans to set up hostels for them and establishing crèche facilities are key to particularly encourage unskilled and semi-skilled women including women to remain in the workforce, thus fostering a more inclusive and productive economy.”- N Chandran, chairman, Eastman Exports
Puneet Bansal, Co-Founder, Suroskie, says several initiatives to support the skincare and beauty aesthetics sectors are included in India's Budget 2024. It places a focus on lowering import taxes on necessary raw materials, encouraging domestic production, and supporting MSMEs with tax breaks and simpler loan availability. Research and innovation in beauty technology are also given more money. Additionally, the budget encourages digital transformation by supporting entrepreneurs in the beauty industry and e-commerce platforms.
The noteworthy change that lowers the GST rate on beauty items from 18% to 12% lowers the cost of skincare products for consumers. Innovation is also anticipated to be fueled by incentives for entrepreneurs in the skincare and beauty tech sectors, such as tax rebates and simpler financing sources. These regulations, along with higher R&D spending, should promote industry expansion by lowering the cost of high-quality skincare goods and facilitating the international launch of domestic companies, says Puneet Bansal, Co-Founder, Suroskie.
r. Virendra D. Mhaiskar, CMD, IRB Infrastructure Developers Limited:
“The Budget 2024 looks to be the Government’s continued and focused commitment and support with robust Central investments for Infrastructure Sector, facilitating States Investments for the Sector and providing Viable Gap Funding for promoting Private Investments in the Sector for overall strengthening of the Nation's infrastructure. Overall, the Budget is going to be a big booster to facilitate India's economic growth; roads and highways sector, being the prominent infra sector is expected to get much needed impetus through adequate funds allocations.”
Rohit Gupta, COO & Co-founder, College Vidya, "Budget 2024's allocation of ₹1.48 lakh crores for education, employment, and skilling demonstrates a robust commitment to India's educational future. At College Vidya, we're particularly excited about the government's decision to provide financial support for education loans up to ₹10 lakhs for higher education in domestic institutions. This aligns perfectly with our mission to increase access to quality education. The Prime Minister's package of five schemes, with a ₹2 lakh crore outlay over five years, is a game-changer for youth empowerment. The goal to skill 20 lakh youth through employment-linked initiatives addresses a critical gap between academic learning and industry requirements. We see tremendous potential in integrating these initiatives with digital learning solutions. This budget sets a positive tone for collaboration between the government and ed-tech companies to deliver quality education at scale. With these bold steps, India is poised to create an educated, skilled, and employable youth force that will drive our nation's growth."
Post-budget 2024 Quote on Education sector by Dr. Prof Anand Achari, Principal, Vivekanand Education Society's College of Architecture
"The Budget 2024-25 introduces an extensive scheme to offer internship opportunities with 500 leading companies for one crore youth, providing students with practical experience to address real-world corporate challenges. This initiative is expected to enhance the preparedness of graduates for the workforce. With a strong emphasis on employment and upskilling, the government aims to encourage job creation and support new talent entering the job market. Additionally, these measures are set to advance education in architecture and sustainable design by aligning academic learning with industry needs, nurturing a new generation of skilled professionals poised to drive innovation in the field."
Dharamveer Singh Chouhan, Co-Founder & CEO, Zo World
The Union budget for the Financial year 2024-25 marks a significant boost for the tourism industry, underscoring the government's commitment to transform India into a preferred global destination for tourists. The budget has allocated substantial resources into developing and enhancing tourist infrastructure, including scenic landscapes, historic temples, cultural heritage sites, wildlife sanctuaries, and pristine beaches across the country.
The government has announced its intention to preserve cultural landmarks, improve accessibility, and promote diverse tourist attractions through comprehensive development programs. This is highly encouraging for pioneers behind new-age techno-cultural movements.These initiatives are designed to create jobs, attract investments, and stimulate economic growth in related sectors such as hospitality, retail, and transportation. The overarching goal is to leverage India's rich cultural and natural heritage to drive sustainable tourism, enhance India's position as a global superpower. The strategy also puts the spotlight on tourism as "the" industry that will enable both cultural preservation, and long-term economic growth, while simultaneously championing the cause of diverse communities around the country.
These measures are commendable, and will undoubtedly boost confidence in both hospitality and tourism as lucrative startup sectors. At the same time, the Zo World community remains optimistic about enhancements that can propel this vision at least 10x, such as tax reductions for the hospitality industry (to encourage entrepreneurial strides in this direction), subsidies for startups that will contribute directly to the tourism sector, increased support for digital transformation in hospitality services, and additional funding allocation that will help market India's diverse tourist destinations on the global stage.
Zo is excited to align its plans with such initiatives on a national scale, leveraging the enhanced infrastructure and increased tourism to expand its techno-optimistic hospitality footprint and offer truly unique & future-ready experiences across the map", said Dharamveer Singh Chouhan, Co-Founder & CEO, Zo World.
"The highlight of the budget is continued support to the 75,000 crore PM Surya Ghar Yojana - aka Muft Bijli Yojana. This will have far-reaching consequences in our society becoming carbon neutral and benefitting from solar power, which is the lowest cost of energy available to mankind. The program in its current shape benefits both the rich and the poor equally, giving them the benefit of free solar electricity, up to a certain extent. Unfortunately, the poor that consume 100-300 units/month do not necessarily have a roof that is shade free and conducive to rooftop solar. Unless the program evolves to allowing community solar, the poor will be left behind. The other major issue which will unravel is the quality of the systems being installed, which if not paid attention to, the public will be cheated in large numbers and the government's intended purpose will be defeated. In today's day and age, every solar system can be monitored for its performance very economically and such situations have to be proactively avoided. The MNRE officers are very capable and will steer the program through the issues." - Mr. Pashu Gopalan, President & CEO of Fenice Energy
Dr Sangita Reddy, Joint Managing Director of Apollo Hospitals Group:
"The budget announcement reflects the Government's commitment to enhancing the healthcare system, emphasising a holistic approach that extends beyond mere financial allocations. With an increase to 90,171 crore for the health sector in 2024-25, this pivotal investment indicates a proactive stance for building sustainable healthcare strategies across India. The PM-JAY scheme offers annual cashless and paperless insurance coverage of Rs 5 lakh per family at empanelled hospitals. The initiative aims to increase the beneficiary count of the Ayushman Bharat health insurance scheme twofold within the next three years, beginning with individuals aged 70 and above.
These initiatives are pivotal in improving healthcare services in the nation. The budget highlighted the importance of strengthening healthcare infrastructure, establishing more medical colleges using existing hospital infrastructure, and focusing on preventive care. Exempting three cancer medications from customs duties is a promising strategy and undoubtedly a good move taken by the Government to improve the accessibility and affordability of treatment options for this fatal disease that causes higher mortality and morbidity rates in India and across the globe.
The exemption signifies the strong support of the Government when it comes to focusing on and addressing the cancer burden in the country. This vital step taken in the budget will reduce the financial burden of the cancer patient to a greater extent. Recognizing the mortality linked to cervical cancer, the focus is on preventive care with initiatives aimed at increasing cervical cancer vaccinations among young girls highlighting a paradigm shift towards early intervention by reducing fatalities".
y Deepak Chand Thakur, Co-founder and CEO of NPST Ltd
We welcome the Union Budget. Although it does not contain direct policy mandates for the Fintech segment, there are several positives that we would like to highlight:
- Income Tax Relief and Increased Discretionary Income: The relief in income tax is expected to boost consumer spending, which in turn will drive more digital transactions.
- 5G Market Growth and Smartphone Penetration: In a rapidly growing 5G market, improved smartphone penetration is essential for broadening payments. The Budget's focus on reducing the cost of imported components and finished products, potentially leading to lower retail prices for mobile phones and accessories, will benefit the fintech sector by expanding the base of smartphone users and enhancing access to digital payment platforms.
- Reduction in E-commerce TDS: The reduction in e-commerce TDS from 1% to 0.1% will encourage more merchants to embrace digital payments. This policy change will lower the compliance burden on merchants, making it easier for them to participate in the digital economy, thus driving further adoption of digital payment systems.
- E-commerce Hubs and Public-Private Partnerships: The establishment of dedicated e-commerce hubs through public-private partnerships presents an exciting opportunity for innovation in cross-border B2B trade payments, potentially using UPI rails.
- Expansion of IPPB Branches in the Northeast: The opening of 100 IPPB branches in the Northeast also opens opportunities for other payment companies and fintechs to expand their services to new regions, tapping into a market with significant growth potential.
Union Budget 2024: ICAI Welcomes Budget 2024-25 Focusing on Employment, Skilling, MSMEs, and the Middle Class
The Institute of Chartered Accountants of India (ICAI) welcomes the Budget that focuses on employment, skilling, MSMEs sector and Middle Class. Simplifying taxes, improving taxpayer services, providing tax certainty, and reducing litigation are the four cornerstones of the tax proposals in this budget.
CA. Ranjeet Kumar Agarwal, President of ICAI, said, “the proposal outlined by the finance minister, such as simplifying the FDI rules, facilitating term loans for MSMEs, and abolishing angel tax will boost domestic and startup industries in the country. The budget's focus on increasing the participation of women in the workforce is also a very welcome measure. Initiatives aimed at skilling and upskilling women, as well as providing support for women entrepreneurs, are expected to enhance economic growth and social development.”
Further proposal aimed at reviewing the Income-tax Act, 1961 is in the overall interest of taxpayers provide tax certainty to the taxpayers is the need of the hour. The extension of C-PACE services for voluntary LLP closures will streamline the filings and accelerate the closure process.
President, ICAI, added “We also welcome the recent reforms aimed at enhancing the efficiency and effectiveness of the Insolvency and Bankruptcy Code (IBC) and strengthening tribunals to facilitate speedy resolution. The moves announced are towards achieving the objective of IBC in India which is one of the biggest economic reforms. Also, we appreciate the announcement with regard to the launch of new integrated technology platform for IBC cases which will not only ensure consistency, transparency, accessibility but also will cater to the diverse needs of all Stakeholders including Insolvency Professionals, creditors and debtors.”
Some significant proposals of the Union Budget 2024-25 are given below:
· Simplified Taxation Schemes: The budget highlights the increasing preference among corporates and individuals for special simplified schemes in corporate and personal taxation. These schemes offer reduced tax rates on total income computed sans deductions and incentives.
· A Comprehensive review of the Income-tax Act, 1961: Aimed at reducing disputes and litigation to provide tax certainty to the taxpayers, which is crucial. Additionally, the reduction of TDS rates align with the goal of using TDS primarily as an audit trail rather than a revenue-generating tool. The merger of first regime u/s 10(23C) and second regime u/s 11 to 13 for charitable trust will pave way for simplifying the overall tax system for trusts.
· Rationalisation of Capital Gains Taxation: Rationalisation of the Capital Gains Taxation regime include reduction in tax rate on LTCG u/s 112 from 20% to 12.5% simultaneously with removal of indexation benefit; and increase in tax rate of long-term capital gains (LTCG) in respect of listed financial assets taxable u/s 112A from 10% to 12.5% along with increase in exemption from Rs.1 lakh to Rs. 1.25 lakhs. The tax rate on short-term capital gains (STCG) on certain financial assets will increase from 15% to 20%, while other gains will be subject to the applicable tax rate. The period of holding for classifying a capital asset as long-term or short-term is being reduced from 36 months to 24 months for all unlisted financial assets and all non-financial assets. Income received on buyback of shares will now be taxed akin to dividend in the hands of the recipient.
· Digitalization of Taxpayer Services: India ranks high in digitalisation of taxpayer services and this index is expected to improve further with the announcement of digitalization of the remaining services of Customs and Income Tax including rectification and order giving effect to appellate orders over the next two years.
· Reducing Litigation and Appeals: The Bill also focuses on reducing litigation and appeals, which is the pressing priority to dispose the huge backlog, increasing in threshold limit for department appeals.
· Personal Taxation Relief: The budget also focuses on personal taxation, with an increase in the standard deduction and deduction for family pension and rationalization of tax slabs, providing some relief to the middle class—a significant focus area of this budget.
· Block assessment scheme reintroduced for search cases - A significant change in the procedural tax regime is the reintroduction of block assessment scheme for search cases.
· International Taxation - On the international taxation front, to promote foreign investment, corporate tax rate for foreign companies is being reduced from 40% to 35%, angel tax is being withdrawn as also equalization levy of 2% on e-commerce supply or services. Moreover, the scope of safe harbour rules is being expanded to aid in reducing litigation and provide certainty in international taxation.
· Pre-budget suggestions of ICAI - ICAI is happy to note the consideration of its Pre-budget suggestions in the Finance Bill. Suggestions relating to decriminalisation of late payment of TDS, on payment being made before the certain time prescribed, increasing the threshold limit for allowable remuneration to working partner, increasing the standard deduction for salaried employees and increasing the threshold exemption for taxation of long-term capital gains on transfer of STT paid equity shares. ICAI had suggested that the assessee may be given an option to withdraw the appeal by paying the entire tax due; the entire interest and penalty be waived. It was suggested that this measure would go a long way in bringing down litigation. The Vivaad Se Viswas 2024 is a proposal in this direction. ICAI also lauds the proposal to provide a standard operating procedure for TDS defaults and rationalize the compounding guidelines for such defaults.
· Indirect Tax Proposals - The customs duty rate changes proposed in the Union Budget 2024 are designed to boost exports, enhance local value addition and domestic manufacturing, encouraging growth and sustainability. The GST proposals in the Finance (No. 2) Bill, 2024 aim to give effect to the recommendations made in the 53rd GST Council Meeting. Empowering the Government to regularize non-levy or short levy of tax due to any general practice prevalent in trade is a progressive amendment which will facilitate taxpayers. The new dispensation of having a common time limit for issuance of demand notices and orders in fraud and non-fraud cases in respect of demands from the financial year 2024-25 onwards is a significant move to reduce disputes and bring clarity.
The Union Budget 2024-25 is thus forward looking with significant initiatives aimed at boosting economic growth, fostering innovation, and improving the ease of doing business in India.
Sri Hari, Chief Business Officer of GenY Medium.
We applaud the progressive steps taken in the Union Budget 2024 to do away with the Angel Tax for startups. These reforms will encourage innovation and growth by improving the investment climate, freeing up startups of cash constraints and focus on growing their businesses.
As a digital marketing agency, we see tremendous potential for innovation that startups bring, and as their funding increases, they will require more effective marketing plans to connect with consumers and build their brands.
We are prepared to collaborate with entrepreneurs in this vibrant ecosystem and help spearhead their innovation with our state-of-the-art digital marketing solutions.
Dr. H. Sudarshan Ballal, Chairman, of Manipal Hospitals.
This year's budget has focused on creating more jobs and also creating opportunities for skilling which is the need of the hour. Some relief for the salaried middle class in income tax and an increase in exemptions has been provided which is welcome. As far as health care is concerned customs duty exemption for some cancer drugs and technology behind equipment like X-Ray tubes is welcome. Building more medical colleges using the existing hospitals is likely to boost the much-needed increase in the number of doctors in the country. Strengthening the vaccination programs is a welcome move.
Overall, the budget seems to have focused on the creation of jobs and some relief for the salaried medical class in income tax and exemptions. No major changes in health care except concessions for some cancer care drugs medical equipment, building more medical colleges, and strengthening the vaccination programs.
By - Ms. Brinda, Chief Executive Officer at eVidyaloka.
India's Union Budget 2024-25 reflects a commendable commitment to education and skill development. With an allocation of ₹1.48 lakh crore, the allocations aims at enhancing human capital. Financial assistance through e-vouchers for higher education, loans up to ₹10 lakh with a 3% interest subsidy, and a focus on skill development are a few highlights. The budget also emphasizes female enrolment in STEM courses and infrastructure to improve women's labour force participation rate. However, effective implementation and regional inclusivity remain critical for realizing these goals.
Allocation of ₹1 lakh crore to boost research and innovation in education will provide long-term financing is a welcome step towards fostering breakthroughs and technological advancements. The focus on emerging technologies, including AI research, will drive innovation within the education sector. The budget allocations will also have significant implications for rural education with the scope to improve infrastructure, enhance teacher training, promote digital literacy, and provide financial aid. However, successful implementation and community collaboration are essential for maximizing impact. The onus is on policymakers to ensure effective implementation, monitor outcomes, and address regional disparities.
Quote by Mr. Mr. Praveen Jaipuriar, CEO of Continental Coffee Limited.
"The budget for the manufacturing sector is highly encouraging. The significant allocations for infrastructure development and technology upgrades highlight the government's commitment to enhancing domestic manufacturing capabilities. Increased funding for the PLI (Production-Linked Incentive) scheme is expected to attract more investments and boost production capacity, enabling us to compete more effectively on a global scale. The reduction in e-commerce TDS will also alleviate the tax burden on businesses, facilitating smoother operations and fostering growth.
For the coffee manufacturing industry, while the budget announcement did not address some specific expectations, we remain optimistic. A future reduction in GST on products such as packaged foods and instant coffee, along with a decrease in import duty on green beans, would greatly support meeting market demand and improving the sustainability and profitability of coffee production. We look forward to continued dialogue and future measures that will further benefit our industry."