Union finance minister Nirmala Seetharaman on Tuesday presented the first budget of Modi government 3.0, to which the MSME sector gave thumbs down. Echoing similar views the tax professionals too have expressed their dissatisfaction over the Budget 2024, though praising the continuation of some old schemes along with roll out of minute reliefs.

According to city based tax expert, CA MK Gupta of Mantosh Kumar & Associates, "This was the first Budget of the Modi 3.0 Government, however, the government had tried to come up with the certain reforms & tough decisions as well. From the perspective of the common man enhancement in standard deduction from Rs. 50000 to Rs. 75000 & change in the tax slabs will result in tax benefit of Rs. 17500 to salaried employees, Higher Education Loans upto Rs. 10 lakh for study in domestic institutions are good steps. But increase in STCG rates from 15% to 20% and increase in LTCG from 10% to 12.50%, no change in old regime, nothing special for senior citizens, super senior citizens, abolishment of Indexation benefit for Long Term capital Gain, not appreciable steps. The saving was important habit of Indians, which helped a lot in tough times, but now the new tax regime will demotivate all these”

Gupta also added, “Continuation of bank credit to MSMEs during their stress period, Mudra loans increase from ₹10 lakh to ₹20 lakh, financial support for 50 multi-product food irradiation units in MSME sector, E-Commerce Export Hubs to be set up in PPP mode, Employment Linked Incentive, working women's hostels and creches, Model Skill Loan Scheme are welcome steps. Further infrastructure spending upto 11.11 Lakh crore will boost spending and economy in long run. But no announcement on income rate reduction, TDS on Partnership forms for Payment to Partner above Rs. 20,000/-, GST rate rationalisation, simplification as well as digitalisation of the schemes for the MSME, 43B amendment etc were much expected, but not given to the industry”

When asked about how the budget could have been better, Gupta opined that , “Focus should be given on the Faceless system, compliance simplifications etc to promote ease of doing business in all acts. Personal visits, inspections, surveys etc should be minimized. Further Lowering tax rates would promote Industry to pay taxes at their own”

Chartered Accountant CA Budget Budget 2024 Nirmala Seetharaman Finance Minister Union Budget 2024 Modi 3 0 Msme Finance Banks Middle Class Standard Deduction Long Term Capital Gain Ltcg Short Term Capital Gain Stcg