The 2024 budget is based on two main themes, the first is to simplify tax provisions and reduce complexity and disputes, while boosting certainty and adopting a collaborative, non-adversarial approach and the second is it aims to stimulate growth and employment, with a significant shift from principal accounts to normative and presumptive methods, said Sh Sanjay Malhotra, Revenue Secretary – MOF, GOI while speaking at PHDCCI’s Post Budget Session Implications Of Union Budget 2024 held today at PHD House, New Delhi
Speaking further on the capital gains he informed that the changes were driven by simplicity, fairness, and equity, ensuring that those more capable bear a burden than the lesser. He added that efforts were made to address various suggestions, including simplifying TDS, making appeal orders effective, rectifying cases, reducing the reassessment period, and merging charity schemes. Mr. Malhotra further expressed gratitude to taxpayers mentioning that 51% of direct tax revenue comes from the TDS.
This year’s budget is primarily focused on growth, development, and inclusive progress. On the revenue side the goal is to support growth momentum as India stands out with a 7% growth rate amid global economic challenges aiming for a Viksit Bharat by 2047, concluded Mr. Malhotra. Further during the QnA session he assured the full support of the government towards upliftment of Industry and trade.
Mr. Sanjeev Agrawal, President, PHDCCI discussed that the steps announced for micro, small and medium enterprises (MSMEs), such as credit support during periods of stress, credit guarantee for manufacturing units and the new assessment model for public sector banks for providing credit to MSMEs all these are going to provide a fillip to scores of small units. MSMEs are the backbone of our economy and we applaud the much-needed focus that they have received in this Budget. We are sure that the overall provisions of Budget 2024-25 would further boost the economy, attract investments and create employment opportunities for the growing youth population.
Further, inclusive development, job creation, internship opportunities, skilling, reaching the last mile, infrastructure and investment, green growth, youth power and financial sector. These will enhance India’s economic empowerment and pave the way for inclusive development, added Mr. Agrawal
Mr. Hemant Jain, Sr. Vice President, PHDCCI, said, The Union Budget 2024 presented by Hon’ble Finance Minister is bold and offers not only a direction for growth but also a strong intent for reforms. The Indian economy has undergone a transformative process of New Age reforms in the last eight years. These diverse policies converge towards improving the economy’s overall efficiency and lifting its potential growth. The Budget provides a great direction towards stability, strength, and long term economic growth.
He added, the direct tax recommendations in the Budget for 2024 are intended to ensure continuity and stability in taxes, simplify and rationalize numerous rules to lessen the cost of compliance, encourage the entrepreneurial spirit, and give residents tax relief. By making compliance simple and straightforward, we are sure the Income Tax Department will continue to enhance taxpayer services.
Mr. Mukul Bagla Chair, Direct Taxes Committee, PHDCCI discussed that many of the requests were addressed in the 2024 budget, and hopeful that remaining suggestions will be given due importance next year. He appreciated the new tax regime, abolishment of the angel tax, the reduction in corporate tax rates for foreign companies from 40% to 35%, simplification of tax regime, and the new Vivad Se Vishwas scheme. He also acknowledged the reduction in the reassessment period from 10 years to 5 years but raised concerns about procedures related to block assessment in search and seizure, share buybacks, the increase in capital gains tax and urged the revenue Secretary to consider addressing these concerns.
Mr. Ashok Batra Chair, Indirect Taxes Committee, PHDCCI congratulated the Secretary for bringing certainty and removing ambiguities. He discussed relief on interest penalties under sections 128A for three years. Change in litigation policy where the department will not contest cases will go a long way to reduce litigation, and suggested extending amnesty under section 128(A) to four years. He also praised the Union Budget 2024 for addressing industry demands under section 70 and gave the Budget2024 a ranking of 9 upon 10.
Dr. Ranjeet Mehta, Executive Director, PHDCCI appreciated the government’s decision to eliminate the angel tax as a significant milestone for Indian startups and this will further boost innovation and investor’s confidence amid the funding challenges. He further praised the efforts of the Ministry of Finance for tabling a balanced budget which is sure to pave a path for development of Industry and trade.
