Pre-Budget Exemptions: Key Considerations for Union Budget 2024-25 (Presentation: July 23rd or 24th, 11:00 AM IST)
In anticipation of the Union Budget presentation on July 23rd or 24th, 2024 at 11:00 AM IST, stakeholders across various sectors are keenly interested in potential tax exemptions within the upcoming fiscal framework. These exemptions serve the dual purpose of incentivizing specific industries and alleviating taxpayer burdens, ultimately stimulating economic activity. Let’s delve into some of the key areas where such exemptions might be introduced:
Taxation:
Personal Income Tax: The government may reconsider the tax slabs or bring in some measures on deductions specific to one category of taxpayers like the salaried class or senior citizens. It could lead to higher disposable incomes, thereby having a good positive effect on consumer spending.
Capital Gains Tax: There is an expectation of a likely revamping of the capital gains tax on equity investments through exemptions or reduced rates for a long-term holding to encourage a long-term holding horizon and bring stability to the markets.
Sector-Specific Exemptions: Tax breaks will be made for industries to promote domestic production and boost development for some strategic sectors, for instance, manufacturing and renewable energy.
Cryptocurrencies: Young Indian crypto market with millions of hopeful billionaires would potentially see ease in the regulatory overhang with the reduction in tax rates on crypto transactions or capital gains from crypto holdings, thus fostering a more conducive environment for this emerging asset class.
Social Welfare Programs: The budget presentation may reveal exemptions or more relaxed eligibility for the beneficiaries of social programs. In this way, it will improve the efficiency of the programs, making them have wider reach and hence tackle some of the social ills.
Important Considerations: However, it is prudent to say that these are anticipated exemptions, and only the final pronouncements on the budget day set what measures will actually be formalized. Each one of those stakebearers, therefore, must closely track all government sources of information for the latest updates on this Budget 2024-25.
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