On February 1, 2024, Finance Minister Nirmala Sitharaman is set to present the Union Budget under the current Narendra Modi government. Given that this Budget is ahead of the Lok Sabha elections year.
It is expected to be an Interim Budget or a Vote on Account. The key question looms: will Finance Minister Nirmala Sitharaman unveil significant relief measures for income taxpayers and salaried individuals? Speculations abound regarding potential revisions to income tax slab rates for FY 2025, impacting both the old and the new income tax regimes.
The Union Budget Will Focus To Boost AI Capabilities
- As we approach Budget 2024, the focus is squarely on the digital frontier, with high expectations for a transformative approach to digital transformation and artificial intelligence (AI).
- As we see a future in which technology is a driving force, we expect smart resource allocations to push AI innovation and speed digital efforts.
- Anticipation is high for policies that not only support the growth of digital ecosystems but also prioritize the development of AI capabilities.
Union Budget To Focus On Digital Innovation
- The Union Budget 2024, looking forward to the IT sector, will be focused on the financial perspective.
- The emphasis on financial prudence aligns with our expectations. We expect a budget that highlights the critical role of technology in our economic landscape. from Union Budget.
- Strategic allocations are expected to drive digital innovation, strengthen cybersecurity, and enhance research and development.
18 Percent GST On the Educational Sector
To promote research and development in the education sector, we call for a review of the 18% GST on education services, aiming to alleviate financial burdens. In this budget, emphasis must be placed on skill development, accompanied by a crucial need for the recognition of online degrees.
Union Budget On Home Loans, Housing
- Increasing the tax deduction limit will make home loans more attractive, reducing the net cost of borrowing for home buyers.
- This can lead to a rise in demand for affordable homes, which in turn can spur the construction and real estate sectors, creating a positive economic ripple effect.
- Home loan rates have increased due to factors such as central bank interest rate hikes.
- An average home loan customer is now paying higher interest than a few years ago, in addition to homes becoming more expensive.
This budget is considered ‘interim’ as the government is facing a general election in April-May, making it the final budget of the Narendra Modi government’s second term.