As we approach the Union Budget 2024, there is anticipation among corporates, MSMEs, and the salaried class. The budget is expected to bring significant changes in GST compliance, income tax reforms, and support for startups and innovation.
Corporate Expectations: Corporates hope for revisions in GST rates to reduce compliance burdens and stricter enforcement of anti-profiteering measures. MSMEs look forward to a simplified return filing process. On the income tax front, there is an expectation for a reduction in corporate tax rates for MSMEs and relief in capital gains tax.
Long-Standing Demands of the Salaried Class: The salaried class hopes for higher exemption limits for income tax, an increase in the standard deduction, and simplified tax filing processes. Improved social security benefits, including better retirement and healthcare provisions, are also key demands.
Support for Startups and Innovation: The budget can boost startups through measures like establishing funds for R&D, providing venture capital, and offering tax holidays. Simplifying registration and compliance processes, supporting deep tech ventures, and providing R&D incentives are also anticipated. Innovation hubs and training programs for entrepreneurs can create a supportive ecosystem.
Changes to the GST Ecosystem: The budget is expected to bring significant changes to the GST ecosystem, including the waiver of interest and penalties, extension of the time limit to avail ITC, waiver of interest on delayed filing, humanizing GST practices, addressing corporate guarantees, and curtailing IGST refunds. These changes aim to streamline the GST ecosystem and support businesses.
In conclusion, the upcoming budget has the potential to address the concerns of various stakeholders and pave the way for a more prosperous future. By focusing on economic growth, compliance simplification, and social welfare, the budget can create a balanced approach that benefits corporates, MSMEs, startups, and the salaried class alike.