Jul 19, 2024, 8:52 pm IST
Union Budget Live Updates: Any Benefits For Foreign Fund Managers Via IFSC?
Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services: Currently, there are exemptions on relocation of assets from offshore jurisdictions. In order to give boost to foreign fund managers and other foreign employees moving to IFSC, the tax provisions should be amended to categorise such entities moving to IFSC as ‘non-residents’ and their income should be taxed at a lower tax rate as prevailing in other popular offshore jurisdictions. For instance, in Singapore local laws, income derived by a Singapore fund manager from managing or advising a qualifying fund is taxed at a concessionary tax rate of 10%. This concession can impact the flight of offshore to onshore and push India IFSC as one of the most preferred fund manager hubs in lines of New York, London, Hong Kong, Singapore, etc.
Jul 19, 2024, 8:52 pm IST
Budget Live Updates: Extension of tax holiday?
Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services: Section 80LA provides for a deduction in respect of the income of International Financial Service Centre [IFSC] Units/ its investors in accordance with the provisions of this section. There has been plethora of regulatory changes introduced which have made it a lucrative investment destination. The income-tax holiday available to units in IFSC can be extended to make it attractive for foreign players, as the current tax holiday is for a very short-term period. For instance, Dubai International Financial Centre provides tax holiday for 50 years. Likewise, extending the tax holiday for another 5 to 10 years to IFSC units would surely make IFSC competitive with other global financial hubs, resulting in increase in India’s GDP, employment opportunities, an increase in forex reserves, and related economic benefits.
Jul 19, 2024, 4:28 pm IST
Budget Live Updates: Expectations For Flexible Workspaces
Sanjay Chatrath, Managing Partner, Incuspaze: We believe that Budget 2024 can be a transformative milestone for the flex workplace industry in India. We urge the government to restore the input tax credit for real estate, which will significantly reduce our operational costs and encourage more businesses to adopt flexible workspaces. Additionally, introducing green credits and financial incentives for green buildings will promote eco-friendly practices and reduce our carbon footprint.
Jul 19, 2024, 3:38 pm IST
Budget Live Updates: FICCI Sees GDP Growth At 7% For FY25
Ahead of the Union Budget, FICCI has conducted Economic Outlook Survey in the month of July 2024 and drew responses from leading economists representing industry, banking and financial services sector. According to the survey results, median GDP growth is estimated at 6.8 per cent and 7.2 per cent in Q1 2024-25 and Q2 2024-25 respectively. Further, the median forecast for CPI based inflation has been put at 4.5 per cent for 2023-24.
Jul 19, 2024, 2:05 pm IST
Budget Live Updates: Will Personal Tax Reliefs Take Toll On Exchequer?
Emkay Global: Weaker political capital, uneven growth story with tepid consumption, and missing vigor in private capex and the rural sector form the backdrop of the upcoming Budget. A segment of the market expects slower pace of fiscal consolidation and changed policy priorities ahead, but we don’t see massive policy pivots. Though economic trade-offs stay challenging amid reducing fiscal impulse to growth, the policy spirit is unlikely to be derailed. The fiscal buffer from RBI’s excess dividend of 0.4% would be disproportionately directed toward allocation for the rural/farm/welfare sector, while capex may increase slightly. Ex-interest revex/GDP may rise to 7.7%, and capex/GDP may further pick up, to 3.5%. Gross tax/GDP is likely to be stable at 11.6%, despite the easing tax growth. Mild tinkering and sweeteners on personal taxes may not cost the exchequer >0.1% of GDP. Overall, we maintain FY25E GFD/GDP at 5.1%, after 5.6% in FY24P. Though net borrowing at Rs 11.4trn would be ~Rs300bn lower than the Interim, small savings are likely to fund 27.8% of GFD.
Jul 19, 2024, 12:32 pm IST
Budget Live Updates: How Govt Initiatives Will Integrate Cybersecurity?
Kumar Ritesh, Founder CEO, Cyfirma: There is a critical need for adequate funding for a robust incident reporting policy, as that would facilitate timely and transparent reporting of cyber incidents, allowing minimising the damage and help in building a resilient cybersecurity infrastructure. For all these, the budget should include co-innovation funding for cybersecurity startups that would facilitate the development of new security solutions. By doing so, India can accelerate the development and deployment of advanced cybersecurity technologies. It is crucial that the government take initiatives to integrate cybersecurity startups into federal and enterprise sectors. As collaborating with the government and cybersecurity firms can help these startups scale their solutions, offering larger entities innovative and agile security approaches. These collaborations can combine expertise and resources to advance cybersecurity measures and bolster defence against cyber threats. And finally the Budget should prioritise funding framework and guidelines to address the AI’s cybersecurity challenges while fostering innovation.
Jul 19, 2024, 11:53 am IST
Budget 2024 Live Updates: Govt To Stay On 5.1% Fiscal Deficit Target?
Arvinder Singh Nanda, Senior Vice President, of Master Capital Services: The fiscal deficit target for FY25 is likely to stay at 5.1% of GDP as per the interim budget. Emphasis will be on job creation through capital expenditure and targeted social spending, along with the 'Viksit Bharat' initiative. The budget may also outline a roadmap for fiscal consolidation beyond FY26. While no reduction in personal income tax rates is expected, there could be tax relief for middle-income taxpayers. Key sectors to watch include agriculture, start-ups, housing, railways, defense, electronics, and renewables. Changes in short-term capital gains tax rates are anticipated, but significant hikes in long-term capital gains tax rates are not expected.
Jul 19, 2024, 11:51 am IST
Budget Live Updates: FY25 Budget Expected To Bolster MSME Sector
Ritesh Saraf, Co-Founder & CEO of Promilo: Ritesh Saraf, Co-Founder & CEO of Promilo, anticipates a pivotal budget session that can bolster India's MSME sector. With expectations aligned towards incentivizing digital adoption and promoting tech-driven marketing solutions, Promilo seeks supportive policies that encourage economic resurgence post-pandemic. Saraf emphasizes the need for targeted reforms that enhance digital infrastructure and reduce marketing overheads, crucial for sustaining growth momentum across sectors. As Promilo continues to innovate in B2B and B2C sales appointments, Saraf looks forward to policies that foster a conducive environment for entrepreneurial ventures, ultimately contributing to India's digital economy evolution.
Jul 19, 2024, 11:48 am IST
Budget 2024 Live Updates: Insurance Sector Expectations
Dhirendra Mahyavanshi, Co founder and CEO of Turtlemint: Anticipating the upcoming Union Budget, we eagerly await initiatives set to propel the insurance sector towards inclusive growth. With amendments aimed at achieving 'Insurance for All by 2047', we envision a transformative era. We anticipate provisions such as composite licenses, enhanced capital frameworks, and streamlined regulations that foster innovation while ensuring policyholders' interests are safeguarded. These reforms are poised to unlock new opportunities in micro-insurance, agriculture coverage, and regional initiatives, reinforcing the industry’s commitment to customer-centric innovations.
Jul 19, 2024, 10:34 am IST
Sensex, Nifty Hit New Lifetime High
Ahead of the Union Budget announcement next week, Sensex and Nifty 50 touched an all-time high in the early trade of Friday, July 19, 2024. The 30-scrip benchmark touched its new lifetime high of 81,587.76, while the Nifty 50 clocked a fresh record high of 24,854.80. However, soon after hitting new highs, Sensex and Nifty corrected and traded on a bearish tone as investors booked profits.
Jul 19, 2024, 9:44 am IST
Budget Live Updates: Real Estate Expects Budget FY25 To Improve Liquidity
Pradeep Misra, CMD, Rudrabhishek Enterprises Limited:The Indian real estate sector is expecting the Union Budget 2024–25 to improve liquidity, such as enhanced funding for the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, which has been crucial in reviving stalled projects. Raising the home loan interest deduction limit from INR 2 lakh to INR 5 lakh would significantly benefit middle-income homebuyers. Either allow input credit in GST for all type of construction activities or, reducing GST on under-construction properties from 5% to 1%, aligning it with ready-to-move-in properties, could stimulate demand. We also expect the government to revive the Credit-Linked Subsidy Scheme (CLSS) under PMAY, which expired in 2022. This scheme previously benefited EWS/LIG homebuyers and supported the conversion of 'kaccha' homes into 'pucca' ones under PMAY (Rural). Reintroducing a 100% tax holiday for affordable housing developers under Section 80-IBA and updating the definition of affordable housing to reflect current market dynamics are crucial. To promote SM REITs, long term capital gain on SM REITs should be exempted for the investment made in the year.
Jul 19, 2024, 9:06 am IST
Budget Live Updates: Schemes That Provide Fiscal Incentives To Drive Pharma Exports
Nandini Piramal, Chairperson, Piramal Pharma: As we approach the upcoming budget, we’d like to underscore how strengthening regulatory frameworks and fostering strategic public-private partnerships can go a long way in enhancing India's competitiveness on the global pharmaceutical landscape.Recognizing the pharmaceutical industry’s substantial contribution to India’s exports, we eagerly anticipate schemes that provide fiscal incentives to encourage such exports. These measures will empower pharmaceutical companies to further invest in creating/maintaining world class facilities, thereby significantly contributing to the nation’s economic growth. By streamlining regulatory processes and encouraging collaborative initiatives, we can accelerate the delivery of high-quality, affordable healthcare solutions worldwide. As we look forward, Pharma companies need to remain committed to advancing healthcare innovation on a global scale. The upcoming budget presents an opportunity to bolster our nation's capabilities in driving transformative healthcare solutions, reinforcing our position as a preferred partner for global pharma collaborations.
Jul 19, 2024, 8:26 am IST
Budget 2024 Live Updates: What Will Drive Ease Of Doing Business?
Mahesh Fogla, Executive Director, Patel Integrated Logistics Limited: To promote ease of doing business, it is essential to alleviate tax pressure and compliance, whether it is company law, income tax, or GST. Currently, GST notices are issued nationwide by just seeing them in the portal and without any application of mind. The IATA president already mentioned in the public domain that foreign carriers may quit India due to tax (GST) issues. As GST is a relatively new law, it is suggested that no penalties be imposed for the initial three years of the new business, allowing citizens sufficient time to comprehend the law. Notably, the World Bank has acknowledged GST as the most complex law globally. We also must understand that due to COVID-19 for almost 3 years, it is important to consider that period with relaxation while doing tax assessments. Within TDS, streamlining more than 36 rates is necessary to improve the business environment. Also, it is imperative to support MSMEs by considering a 20% increase in the GST threshold limit for services (from 20 lakhs) and goods (from 40 lakhs), factoring in inflation.
Jul 19, 2024, 8:26 am IST
Budget 2024 Live Updates: Pharma Expects Prioritization On R&D
Srivardhan Khemka, Director, Sanjivani Paranteral:To achieve a 0 billion industry by 2030, the budget should prioritize research and development, following the example of last year's Promotion of Research & Innovation Program (PRIP) Scheme. This goal can be met by investing more in integrating technology and AI to enhance speed and accuracy, we must look at overall health care while developing the infrastructure with a focus on medical colleges, nursing colleges and reforming health insurance thereby ensuring universal health care. Further the budget must also look at increasing budget allocations to public health insurance programs to expand coverage, ensuring more people have access to necessary medications. We anticipate policies that assist the pharmaceutical sector with tax relief, such as lower or nil GST rates, to facilitate business operations. Additionally, considering the pharmaceutical sector's reliance on exports, we expect credit schemes and policies to support international trade. Simplifying access to international markets will strengthen India's role in the global pharmaceutical industry. Lastly, to promote the "Make in India" initiative, the budget should include low-interest rates and grants to boost domestic manufacturing setups, particularly for domestic API manufacturers.
Jul 19, 2024, 8:26 am IST
Budget Live Updates: FM To Bridge Gap Between Traditional Banks And Fintechs
Raj P Narayanam, Founder and Executive Chairman of Zaggle Prepaid Ocean Services Limited:In the upcoming Budget, we anticipate that Digital Banks in India will play a crucial role in bridging the gap between traditional banks and FinTechs. They have the potential to offer a blend of innovative financial products, a seamless user experience, and the regulatory backing of a licensed bank. Addressing potential challenges through a well-defined regulatory framework and a phased approach can pave the way for a more inclusive and dynamic financial ecosystem in India. This strategic approach aims to serve as a mid-gap solution between traditional banks and fintech companies, meeting the evolving needs of digital-savvy consumers. It will empower consumers with secure, convenient, and affordable banking services tailored to the demands of the digital era.
Jul 19, 2024, 7:53 am IST
Budget Live Updates: FM To Introduce Imperatives & Incentives For Banks?
Ramki Gaddipati, CEO APAC and Global CTO, Zeta: India already boasts of some of the most impressive Digital Public Infrastructure (DPI) and payment rails today including ground-breaking new protocols such as Credit Line on UPI. As a provider of next-generation banking solutions to large financial institutions, we hope that the Union Budget 24-25 will introduce further imperatives and incentives for banks and the associated technology ecosystem to create even more financial inclusion for the underserved Indians.
Jul 19, 2024, 7:51 am IST
Budget 2024 Live Updates: FM To Strengthen Deep Tech Startups?
Manoj Agarwal, Co- founder and Managing Partner, Seafund: I have high hopes for the upcoming budget to strengthen the deep tech ecosystem in India. The government has made encouraging statements about supporting this sector, and I believe it is crucial to provide more backing at the seed stage. Deep tech startups often require significant research and development, which may not attract early-stage investment from the private sector. A dedicated fund of funds to support investors who are willing to take the plunge into deep tech is vital. Additionally, simplifying the taxation framework for startups, ESOPs,and investors is essential. In many European countries, investors receive tax benefits for investing in startups, either directly or through funds. Similar provisions in India could stimulate more domestic investment. Moreover, we need to address the issue of 'reverse flipping' for businesses built in India but headquartered abroad. Facilitating an efficient and tax-effective way for these businesses to return to India could significantly benefit our economy and the government’s revenue in the long run. As we address these concerns, a simplified GST tax regime for the funds and doing away with angel tax will free up a lot of domestic capital towards early stage funding, which is needed today more than ever as we see funding winter thawing at a snail’s pace.
Jul 19, 2024, 7:49 am IST
Budget 2024 Live Updates: Venture Capital Expectation From FM
Anil Joshi, Managing Partner, Unicorn India Ventures: The venture capital industry is very young and has certain expectations from the Honourable Financial Minister. Removal of Angel Tax has been a long standing demand of the industry. Stakeholders of the ecosystem have made representation to the Govt with an aim to find a solution for the same. In most cases, the investments at early stages are made to young companies and with limited resources. It becomes tedious and non productive for everyone, more so it also discourages potential investors to invest because of fear of coming under tax authorities scrutiny. It's a long pending demand and we wish Hon. FM takes it up in the upcoming Budget. The solution will encourage many potential tax payers to open up to the investment of this asset class. Additionally some of the demands are long pending like favourable consideration to GST on management fee and adjustment of management fee toward expenses while calculating income or gains. The industry also demands in the current budget bringing long term gain at par with listed entities. The VC community would prefer speedier approval on overseas investment as the current process takes too long.
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