Budget 2024 Expectations Updates: Nirmala Sitharaman To Bring Major Changes In Tax Slabs?

Finance minister Nirmala Sitharaman is set to present the Union Budget 2024 on July 23. This will be the first Budget of the National Democratic Alliance (NDA) after they won the Lok Sabha Elections 2024.

Nirmala Sitharaman may announce some much-needed tax breaks for middle-class taxpayers.

These could include a hike in the standard deduction limit, a hike basic tax exemption limit in the new income tax regime, and simplified capital gain tax regimes.

How can the budget make various types of insurance more advantageous for people?

Rakesh Kumar, founder of Square Insurance said, “Increasing the tax exemption limit on health insurance premiums to ₹75,000 would make healthcare more accessible. Introducing subsidies or tax credits for comprehensive electric vehicle (EV) insurance will promote EV adoption. Offering tax deductions for home insurance premiums under Section 80C will encourage homeowners to protect their assets. Extending deductions to other personal insurances will promote comprehensive coverage. Comprehensive tax reforms for life insurance, such as allowing complete deductions for premiums, lowering GST on term life insurance, and implementing zero-rating for specific policies, will make life insurance more affordable.”

How much should the budget allocate for climate change?

Ankit Mathur, co-founder of Greenway Grameen said, “We look forward to specific budgetary allocation for climate action projects. Given the serious effects of climate change, experienced in the form of the recent heat wave, it would be prudent to invest in nature based, community driven projects. The government’s excellent work on infrastructure development should be complemented with sincere efforts in climate mitigation and adaptation to build resilience in India’s growth story.”

Interim budget’s vision for Indian railways needs to be formalized

Vivek Lohia, Managing Director, Jupiter Wagons Limited said, “This year’s Interim Budget unveiled a transformative vision for the rail sector, emphasizing strategic initiatives such as the Port Connectivity Corridor, Energy, Mineral, and Cement Corridor, and the High Traffic Density Corridor. These corridors signify a pivotal step towards enhancing connectivity, driving economic growth, and ensuring passenger safety. With a focus on outcomes over outlays, the government underscores its commitment to timely delivery and cost-effective logistics solutions. Also, these are core infrastructures and every penny invested in core infrastructure has a rebound effect on the economy. The announcement needs to be formalized into a bold stride towards holistic transformation and underscores the government’s dedication to modernizing India’s railway infrastructure.”

Investments in AI/ML, Data analytics, 5G, Telemedicine, and cybersecurity expected

Uma Shankar Patro, Senior VP of finance, at InfoVision said, “We look forward to initiatives that foster innovation, strengthen digital infrastructure, and promote skill development. We expect the budget to prioritize investments in emerging technologies like AI/ML, Data analytics, 5G, Telemedicine, and cybersecurity, ensuring India’s global competitiveness. Additionally, measures for startups and SMEs in the IT sector will be crucial for fostering entrepreneurship and job creation. Embracing innovation, inclusivity, and sustainability, the upcoming budget can propel India towards becoming a global leader in the digital age.”

Edtech sector’s requirements from the budget

Aarul Malaviya, founder of Zamit said, “As we look ahead to Budget 2024, there is great anticipation within the edtech sector for increased funding and supportive policies that can drive significant advancements in educational technology. The growing importance of digital learning tools and platforms has underscored the need for robust digital infrastructure in schools and educational institutions. This budget presents an opportunity to address these needs by allocating funds towards enhancing internet connectivity, providing modern devices, and ensuring that both teachers and students are well-equipped to leverage these technologies. We also hope to see initiatives that promote innovative learning technologies, such as artificial intelligence, virtual reality, and personalized learning platforms. These advancements have the potential to revolutionize the way education is delivered and accessed, making it more interactive, engaging, and tailored to individual learning needs. Additionally, policies that facilitate partnerships between educational institutions and tech companies can foster a collaborative environment where cutting-edge solutions can be developed and implemented effectively.