As Union Finance Minister Nirmala Sitharaman braces to present her eighth consecutive Budget, India Inc awaits key policy decisions that could shape the economic landscape.
From driving consumption to enhancing competitiveness, the big question remains-- will industry expectations be met? And, the answer unfolds today.
On Friday, Sitharaman tabled the Economic Survey, which projected India’s economic growth at 6.3-6.8% for 2025-26. Industry leaders welcomed the outlook, anticipating that the Union Budget would give the necessary push to boost consumption and investment demand.
Catch all live updates of Budget 2025 here.
In Budget 2024, the Finance Minister introduced a slew of measures for India Inc, including the revival of Vivad se Vishwas, reduced TDS on insurance commissions and brokerage, and reforms in taxation policies. This year, too, businesses are hoping for another round of impactful measures to drive growth and stability in the economy.
Budget with ET
Middle class, women, poor dominate Modi's pre-Budget speech. Relief ahead?
Economic Survey offers hope to 'aam aadmi' on inflation pains, subject to terms and conditions
India Inc earns fat profits but is not willing to pay more: Economic Survey
On Friday, Sitharaman tabled the Economic Survey, which projected India’s economic growth at 6.3-6.8% for 2025-26. Industry leaders welcomed the outlook, anticipating that the Union Budget would give the necessary push to boost consumption and investment demand.
Catch all live updates of Budget 2025 here.
In Budget 2024, the Finance Minister introduced a slew of measures for India Inc, including the revival of Vivad se Vishwas, reduced TDS on insurance commissions and brokerage, and reforms in taxation policies. This year, too, businesses are hoping for another round of impactful measures to drive growth and stability in the economy.
What did 2024 Budget offer to India Inc?
Finance Minister Nirmala Sitharaman’s first budget in Modi 3.0 introduced significant tax and compliance measures for businesses:- Taxation on rented property: Any rented property, even if used for business purposes, will be taxed as ‘income from house property.’ Developers leasing unsold flats can no longer offset related expenses.
- End of manufacturing tax concessions: The 15% tax rate for new manufacturing plants (under the sunset clause) has not been extended beyond March 31, 2024.
- Revival of Vivad se Vishwas: The dispute resolution scheme is making a comeback, though specific details are awaited.
- TDS rationalization: TDS on insurance commission and brokerage is reduced from 5% to 2%, while e-commerce transactions will attract a 0.1% TDS.
- Gifts as ‘transfer of asset’: Gifts from employers to employees will be treated as asset transfers, potentially benefiting employers through capital gains tax.
- Faster tax assessments: The period to reopen tax assessments is cut from 11 years to 6 years and 3 months, applicable for cases where escaped income exceeds ₹50 lakh.
- Angel tax removal: Investments in unlisted company shares exceeding fair market value after April 1, 2024, will no longer attract angel tax, boosting investor confidence.
- No jail for late TDS filings: Tax deductors won’t face rigorous imprisonment if TDS is deposited before the return filing deadline.
- Penalties on late TDS filings: Delayed TDS/TCS filings beyond a month will incur penalties, ensuring timely tax credits for taxpayers.
- New appeal mechanism: Taxpayers can appeal before tribunals, high courts, or the Supreme Court based on tax addition thresholds of ₹60 lakh, ₹2 crore, or ₹5 crore.
