Every year as February 1 starts approaching, a market full of hopes, expectations, anticipations and speculations starts warming up in the country. Keeping up the tradition, Jobaaj brings you our exclusive insights of Tax experts’ expectations from the Union Budget 2023.

Amidst a likely global recession and international political instability, India’s US$5 trillion economy was able to withstand peaking its way to a growth rate of 7%. Business leaders seem optimistic on Budget 2023-24 that would help economic growth across all sectors.

From an overall economic perspective, experts hope that the government and RBI make a coordinated effort to control inflation. FM in the budget should lay due emphasis on sustainable growth in demand that will require attempts to create jobs and income generation opportunities.

With the upcoming budget, tax experts are expecting the Finance Minister Nirmala Sitharaman to announce measures to encourage and support small and medium-sized businesses.

Tax expert and an active twitterati, CA Chirag Chauhan tweets “All MSMEs having turnover of less than 100 crores should be given a weighted deduction of 150% on salary expenses

This will lead to some tax benefits to employers and shall create more jobs in India”.

High Hopes in Taxation regime:

Experts are hoping for simplifications of the tax code.The Pre-budget survey of Deloitte depicts that more than 65% respondents stated that most useful direct-tax reform would be to make tax compliance easier. 

From personal tax point of view, experts outlooks for revising the tax slab rates(hike in basic exemption limit), increasing the limit of various deductions like the goldenager 1.5 Lakhs of 80C. 

Experts also say that more cities should be declared as metro cities in order to claim 50% in HRA Exemption for the salaried individuals. Capital gain taxation is another area which needs to be streamlined.

In the indirect tax regime too experts hold some expectations like widening the Production Linked Incentive(PLI) scheme, simplifying tariff structure and ease in registration process.

Budget expectations for various sectors: 

For the food and agribusiness sector, government policies should support technology development and infrastructure to optimize supply chains. The infrastructure should be backed by easing financing in the sector. Measures to promote electric vehicles and encourage use of clean energy are likely to be announced in the budget session.

Clarification in the education sector regarding universities offering online education, application of income on ‘payment basis’, should also be made by FM.

In the financial sector experts expect to introduce a new and simpler tax and regulatory framework for Start-ups. A certain clarity on taxation of digital currencies and crypto are highly expected and demanded.

Budget expectations for Stock Market

Holding an exception, India’s stock market has performed well in comparison to other developed  and emerging markets.Experts believe there is a possibility of elimination of Long Term Capital Gain Tax(LTCG). At present LTCG is taxed @10% over Rs 1 Lakh.

The unveiling of the actual budget of 23-24 by FM Nirmala Sitharman ji is very crucial as it is the last budget before the 2024 general elections. It is a matter of mystery till then for will it be able to woo the general public as well as work as the key driving factor for industry and economy.

 

-By Manwi Prakash