Chamber News

Decoding Union Budget 2024

03.08.2024

On July 24, 2024, the Indo-German Chamber of Commerce (IGCC), in collaboration with knowledge partner Nexdigm Pvt Ltd, hosted a session to decode the Union Budget 2024. The event commenced with a breakfast and networking session, followed by a detailed presentation by our expert speakers, Sneha Pai, Senior Director of Direct Tax at Nexdigm, and Aditya Nadkarni, Associate Director at Nexdigm. Their presentation focused on the Union Budget 2024's emphasis on driving economic growth and stability through significant changes across various sectors.

Here are the key takeaways:

  • Economic Goals
  • Fiscal Deficit: Reduced from 6.4% of GDP to 4.9%.
  • GDP Growth: Projected at 8.2% with a 13.4% year-on-year increase.
  • Capital Expenditure: Increased to INR 113.5 billion, marking a 28.2% year-on-year rise.

Employment and Skilling

  • Incentive Schemes: Introduction of three new employment-linked schemes.
  • Internships: Opportunities created for 1 crore youth over five years.
  • Stamp Duty: States encouraged to lower rates, particularly for women.

Tax Proposals

  • Personal Taxation: Revised slab rates and increased standard deductions.
  • Corporate Tax: Reduced rates for foreign companies and new presumptive taxation rules.
  • Capital Gains Tax: Simplified rates and holding periods.

Business Income and Tax Administration

  • Angel Tax Abolished: Effective April 1, 2024.
  • Transfer Pricing: Expanded safe harbour rules.

TDS/TCS Provisions

  • Rationalized Rates: Lower TDS rates for insurance commissions and life insurance payments.
  • Prosecution Relief: No prosecution for delayed TDS deposit if corrected before the filing due date.

Indirect Tax Proposals

  • GST: Amnesty schemes and rationalized pre-deposit amounts for appeals.
  • Customs: Amendments to promote ease of business and investment.

Miscellaneous Changes

  • Vivad Se Vishwas: Extension to resolve tax disputes.
  • Black Money Act: Penalty relaxation for certain assets.

The session concluded that the Union Budget 2024-25 represents a comprehensive set of reforms aimed at fostering economic growth, streamlining tax administration, and enhancing the ease of doing business in India. By emphasizing digital transformation, employment generation, and fiscal prudence, the government seeks to create a more inclusive and robust economic environment.

Following the presentation, the event progressed to a panel discussion featuring distinguished experts: Rakesh Nathwani, Director of Finance & Administration at Deutz Engines (India) Pvt. Ltd.; Sandeep Deshpande, CFO of Jyoti International Food; and Sneha Pai, Senior Director of Direct Tax at Nexdigm. The discussion was expertly moderated by Kalpesh Saraf, Western Regional Director of IGCC. The panellists addressed various aspects of the budget and its economic implications:

  • Overall Budget Impact: Perspectives on budget amendments and their impact on tax liabilities.
  • Tax Regime Simplification: Insights into the complexities of new capital gains taxation rules.
  • Stock Market Reaction: Discussion on potential market volatility due to tax landscape changes.
  • Ease of Doing Business: Evaluation of the budget's measures for business improvements.
  • Angel Tax Amendment: Opinions on the extension of angel tax to non-resident investors.
  • Manufacturing Sector Expectations: Addressing unmet expectations, such as extending lower corporate tax rates.
  • Reassessment Timeline and Vivad se Vishwas Scheme: Benefits of reduced reassessment timelines and the new Vivad se Vishwas scheme.
  • Panellists’ Wishlist: Suggestions for changes each panellist would implement if they were the Finance Minister.
  • Budget Ratings: Panellists rated the budget on a scale of 1 to 5, followed by an audience poll.

The IGCC and Nexdigm’s discussion provided valuable insights into the Union Budget 2024, enhancing understanding within the Indo-German business community. We extend our heartfelt gratitude to our knowledge partners and speakers for their invaluable contributions. Additionally, as a token of appreciation, each partner and speaker received a certificate with a QR code. Scanning the code reveals a picture of a plant planted on their behalf, named after them, symbolizing our commitment to a greener planet.