India Inc demands relief for taxpayers in Budget

New Delhi, July 8

The upcoming Union Budget should focus on offering relief to taxpayers, especially in the lower income brackets, to stimulate consumption, industry players suggested.

Finance Minister Nirmala Sitharaman is scheduled to present the full Budget for fiscal 2024-25 on July 23 that will be the first major policy document of the new government.

The industry also urged the finance minister to lower corporate tax, phase out tax exemptions, and broaden tax base to boost economic growth.

“Rationalise and simplify the tax system to improve compliance and promote investment. Consider measures such as reducing corporate tax rates, phasing out tax exemptions, and broadening the tax base to make the tax regime more efficient and equitable,” Assocham said.

Mayank Gupta, co-founder and COO of Zopper Insurtech, said the Budget was expected to focus on policies to promote economic growth and offer relief especially for the lower income brackets to stimulate consumption.

“From the point of view of insurance, we suggest amending section 80C of the Income Tax Act to permit a greater limit on insurance premium payments, thereby encouraging more individuals to buy insurance products. Additionally, there should also be an allowance of deduction for term life insurance under the new tax regime,” he said.

Rumki Majumdar, economist, Deloitte India, suggested that the government must expand the scope of PLI schemes, especially for sectors that can create more jobs, such as textiles, handicraft and leather. The schemes must continue in sectors that have seen success, such as electronics, auto and semiconductors, Majumdar added.

Pankaj Sharma, CEO of Religare Finvest, expects measures to reduce financing cost through interest rate subsidy, ease access to credit, especially for new to entrepreneurs and comprehensive tax relief for the MSME sector.