“The mini-budget is just a forerunner to the larger picture that will be shown in the annual budget” say experts on Interim Budget 2024, ET LegalWorld



On Taxes

“On the tax front, the interim budget maintained existing direct and indirect tax rates. While this may disappoint sectors requesting reductions, it offers stability and predictability for businesses in general. There is definitely some positive news for small taxpayers embroiled in long-standing disputes, some even dating back to 1962. The withdrawal of cases, with amounts up to Rs 25,000 ( for pre-2010) and Rs 10,000 (for FY 2010-2014), will significantly reduce litigation burdens on individual assessees,” said Rashmi Deshpande, Founder – Fountainhead Legal


“Barring two changes in direct taxation the budget has not made any changes to the direct tax landscape. Given that this was an interim budget, hopes were not high of ground breaking reform. The end outcome can be said to be confident or cautious depending on the lens that you look at this from.The two key changes have been the extension of lower tax benefits to new start-ups, who will be eligible for the lower rate if they incorporate anytime before 31st March 2025 and the tweaking of TCS on foreign remittances,” said Pallav Pradyumn Narang, Partner, CNK.

“Budget 2024 has ensured that the tax exemptions/tax holidays available vis-à-vis GIFT IFSC continue to be available. Accordingly, the FM has proposed to extend the sunset clause contained in these beneficial provisions to March 31, 2025. This will ensure that non-availability of tax exemption/tax holiday does not throw a spanner in the works and GIFT IFSC continues to attract foreign investment,” said Kunal Savani, Partner, Cyril Amarchand Mangaldas

“While this is an interim budget and used more for announcing achievements than anything else, it is positive that the government continues its commitment to capital expenditure by increasing it by 11% and that there have not been any further reductions on direct taxes. I believe that the budget that will be presented after the elections will have more teeth and will provide us with a lot more to chew on,” said Nihas Basheer, Partner, Wadia Ghandy & Co.

“This is a welcome step and will obviate the requirement of involving the government machinery to look at extremely small and minor tax demands, which would be extremely difficult to recover. More importantly, it will also provide solace to a number of small taxpayers,” said SR Patnaik, Partner, Cyril Amarchand Mangaldas.

“Changes in tax rates and exemptions were expected. Nevertheless, the same tax rate has been retained. Lower tax rates for the start ups and new manufacturing industries will give a boost to the entrepreneurs. Withdrawal of outstanding demand to the extent of 25k and 10k mentioned above will give relief to the small taxpayers. There is no clarity if it includes the accumulated interest on such outstanding demands,” said Alay Razvi, Partner, Accord Juris LLP, Hyderabad.

On EV Announcements

“While in the past years, the Government has announced schemes promoting the EV manufacturing sector, charging infrastructure lacked support. Thankfully, the recent budget announcement addressed this gap. This paves the way for a sustainable and long-term EV ecosystem within the country. This announcement holds the potential to attract new entrants and fresh players along with MSMEs to contribute to the EV revolution. However, it’s necessary to ensure clearly defined eligibility criteria for applicability of such a scheme considering the recent disputes around the FAME subsidy,” said Rashmi Deshpande, Founder – Fountainhead Legal

Infrastructure/ General perception on the Interim Budget 2024

“The budget suggests a substantial rise in infrastructure spending, aiming to boost the country’s economic growth and generate numerous job opportunities. This proactive step is highly appreciated and showcases the government’s commitment to advancing its Governance, Development, and Performance (GDP) agenda,” said Jaideep Singh Khattar, Partner, The Fort Circle.

“The focus on infrastructure continues with impetus on transportation projects which have a catalyst effect on the economy. The railway program, expansion of airports and metro rail projects will help in improving connectivity, ensuring reach of goods and services to different parts of India and decongesting our urban centers. The housing scheme for the middle class should give impetus to the real estate industry. Focus on tourism will help in the development of the tourism industry and create economic impact,” said Vishwanathan.

“Being an interim budget, nothing much was expected from this budget. Nothing much has been given. The budget speech has highlighted the growth the country has seen over the years. Of course, one needs to read the finance bill in detail and see what has actually been done. But overall a neutral budget explaining India’s growth and further expected growth with focus on msme, funding, women and youth,” said Ashish Ahuja, Joint Managing Partner, Wadia Ghandy & Co.

On Renewable energy

“Household rooftop solar programs will help drive both renewable energy and electric mobility transitions. One crore households can potentially avoid nearly 25 million tons of CO2 every year.The most significant announcement in the green energy space is the viability gap funding for 1 GW of offshore wind power capacity. This is a much needed push to exploit the extensive offshore wind potential India has,” said Bose Verghese, senior director, Cyril Amarchand Mangaldas.

On Education

“The interim budget continues to keep focus on education, which is imperative to realizing the dreams of ‘Viksit Bharat ‘. Announcements were made of the government’s plan to set up more medical colleges. The speech also had a clear focus on encouraging research, innovation and technological advancements to propel India’s growth. These will be possible with a strong foundation in education – which is supported by the government via NEP and many other light touch regulatory reforms,” said Aarushi Jain, Partner, Cyril Amarchand Mangaldas

“The budget builds on the performance of the government over the last several years. The key focus areas are green energy transition, reinforcement of Net Zero commitment, helping sustainable development of solar power through off-grid installation to support households and the distribution system, augmenting the usage of e-buses for public transport and development of supporting infrastructure. These initiatives will see a significant amount of capex and accordingly spur domestic investment,” said L Viswanathan, Partner and Chair – Finance, Projects & Insolvency, Cyril Amarchand Mangaldas.

“ The recently released World Economic Outlook report of the IMF, calls India a bright spot and has increased our growth estimates. The Budget speech reaffirms and consolidates this growth trajectory. In keeping with constitutional and legal convention, the Budget did not make significant changes to tax or the policy regime. However, it had an important signaling impact. The references to next generation of reforms, continued focus on trade and investment and attention to sunrise sectors such as technology and the energy transition set the path for higher as well as better quality growth for the coming year. The decision to continue tax incentives for investments by sovereign wealth funds and pension funds and those available to startups provides certainty and predictability. The procedural changes to the tax regime also facilitate streamlining and will have a multiplier impact. The withdrawal of older disputed tax demands similarly affords clarity to taxpayers and will give a more real picture of public accounts. Within the constraints of the present budget, the finance minister has hit all the notes of growth, policy and tax certainty and is poised for continued reform,” said Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas.

On Amrit Kaal

The Union Budget charts a visionary course for Amrit Kaal, emphasizing an empowered and inclusive economy grounded in ‘Sabka Saath Sabka Vikas.’ Prioritizing technology-driven growth, resilient finances, and transformative opportunities, the budget focuses on women’s economic empowerment, support for artisans, mission-mode tourism, and a robust commitment to green growth. This financial roadmap transcends numbers, becoming a narrative of inclusive progress, addressing regional disparities and uplifting diverse segments, from women to artisans, across regions like Jammu & Kashmir, Ladakh, and the North-East. Beyond fiscal allocations, the budget paints a canvas where technology, knowledge, and inclusivity converge to shape a future resonant with the aspirations of every citizen. It embodies a commitment to create an Amrit Kaal that fosters prosperity and progress for all, echoing the government’s dedication to inclusive development and regional upliftment,” said Rajesh Rai, Managing Partner, RR Legal Partners LLP.

  • Published On Feb 12, 2024 at 07:04 PM IST

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