Budget 2025 Expectations LIVE Updates: Tax cuts, tourism, jobs, consumption boost among key expectat
Budget 2025 Expectations LIVE Updates: Tax cuts, tourism, jobs, consumption boost among key expectat
Union Finance Minister Nirmala Sitharaman is all set to present her eighth budget on February 1. Tax simplification, increased capital spending, and steps to boost consumption are likely on the table as India navigates slowing domestic growth and global uncertainties.
The Finance Ministry wrapped up consultations with stakeholders on January 6. These discussions spanned key areas like agriculture, MSMEs, education, healthcare, infrastructure, energy, and markets, offering valuable inputs to shape policy decisions.
Both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will remain open for trading on budget day, even though it’s a Saturday.
Niranjan Govindekar, Partner, Corporate Tax at BDO India, highlighted concerns over recent changes in the capital gains tax framework and suggested several reforms to ease investor burdens.
“The hike in short-term rates from 15% to 20% and long-term rates from 10% to 12.5% has significantly raised investor tax liabilities. Since LTCG tax on securities is now on par with other assets, the Securities Transaction Tax (STT) should be abolished,” he stated.
He also called for reinstating indexation benefits for debt fund investments made up to 31 March 2023, as per earlier provisions. On the taxation of share buybacks, he noted, “Under amended provisions, the entire consideration is taxed as dividends. The government should allow the cost of acquisition to be deducted and tax only the net amount as dividends.”
Govindekar further recommended aligning tax rates and holding periods across sub-asset classes, such as treating international equities like domestic equities and harmonising taxes on debt funds, gold funds, and ETFs.
Source:- CNBC