Budget 2024: Major Income Tax Relief for Taxpayers? Industry’s Big Recommendations to Finance Minister

Income tax payers could get relief in this budget


In the Union Budget for FY 2024-25, there should be a focus on providing relief to taxpayers, especially those in the lower-income brackets, to boost consumption. Industry leaders have suggested this to Finance Minister Nirmala Sitharaman, who is set to present the full budget for 2024-25 on July 23, marking the new government’s first major policy document. The industry has also urged the Finance Minister to reduce corporate taxes, phase out tax exemptions, and broaden the tax base to spur economic growth.

Make the Tax System Equitable


The industry body ASSOCHAM stated, “To improve compliance and promote investment, the tax system should be streamlined and simplified. Measures such as reducing corporate tax rates, phasing out tax exemptions, and broadening the tax base should be considered to make the tax regime more efficient and equitable.”

Fiscal Deficit Could Reach Up to 5%

Rating agency ICRA mentioned that the government could set the fiscal deficit target for 2024-25 at 4.9-5 percent without compromising the capital expenditure target of ₹11.1 lakh crore. In the interim budget presented on February 1, the government had estimated it to be around 5.1 percent.

ICRA further noted, “Favorable developments on the revenue front present positive signs for fiscal health in FY 2024-25. However, fiscal consolidation will become significantly challenging after the current fiscal year.”

Relief for Lower-Income Brackets?

Mayank Gupta, co-founder and COO of Jopper Insurtech, expressed hope that the budget would focus on policies promoting economic growth and providing relief to lower-income groups to stimulate consumption.

He suggested amending Section 80C of the Income Tax Act to encourage more individuals to purchase insurance products. Additionally, there should be exemptions for term life insurance under the new tax regime.

Also read: Budget 2024: Massive Boost for Women’s Empowerment Programs Expected!

Expanding PLI Schemes

Rumki Majumdar, an economist at Deloitte India, recommended expanding the scope of Production Linked Incentive (PLI) schemes, particularly for sectors that can generate more employment, such as textiles, handicrafts, and leather. She also advocated continuing the schemes for successful sectors like electronics, automotive, and semiconductors.

Pankaj Sharma, CEO of Religare Finvest, anticipated that policy measures are needed to reduce financing costs through interest rate subsidies and to improve access to credit. ASSOCHAM also suggested structural reforms in the agriculture sector to enhance productivity, market access, and income opportunities for farmers.


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