Union Budget 2025 expectations highlights: Finance sector calls for reduction in loan limits

Union Budget 2025 Latest Updates: Catch all the latest developments related to Union Budget 2025 here

3:15 PM

Foreign investors hope for binding rulings, speedier appeals in Budget 2025

Prashant Bhojwani, partner, Corporate Tax, Tax & Regulatory Services, BDO India, said, "Two of the biggest asks of foreign investors in India are tax certainty and a reduced timeline for litigation. Earlier, the Authority for Advance Rulings (AAR) provided binding rulings that offered clarity and assurance to taxpayers and the tax department alike. It is time to strengthen the framework of the Board for Advance Rulings and re-introduce the binding nature to provide much-needed certainty from a tax perspective to foreign investors."

 

Bhojwani added, "Currently, the maximum appeals are pending at the Commissioner (Appeals), the first appellate authority, with approximately 549,000 appeals pending on April 1, 2024 (out of which 301,000 appeals were filed before April 1, 2022) which does not read very well on India’s scorecard."

2:24 PM

Office market sector expects GST cuts, incentives for energy-efficient businesses: Incuspaze

Sanjay Chatrath, co-founder and managing partner, Incuspaze, said, "The office market saw record leasing of workspaces this year with foreign companies increasingly setting up global capability centres (GCCs). It is essential for the government to support this momentum. We anticipate a reduction in the goods and services tax (GST) rates, which are currently at 18 per cent, and hope for further reductions to 13 per cent. This would help MSMEs, and startups thrive."

 

Chatrath added, "Additionally, offering input tax credits and incentives for businesses adopting energy-efficient practices would be crucial. Furthermore, establishing a unified platform for regulatory approvals and enhancing infrastructure to increase Grade A buildings will further propel growth in this sector."

2:01 PM

Insurance sector seeks FDI increase, GST cuts in Budget 2025: SNG & Partners

Ravi Bhadani, Partner at SNG & Partner Advocates & Solicitors, said, "IRDAI has ushered in significant regulatory reforms for the insurance sector as part of the vision of “Insurance for all by 2047”. The Union Budget 2025 presents an opportunity to transform the insurance sector. Policy measures like increasing the FDI limit to 100 per cent, reducing the NOF (Net Owned Fund) requirement to Rs 50 crore, introducing composite licences for insurers, and enabling an open architecture for individual agents can foster greater competition, innovation, and efficiency in the sector."

 

Bhadani added, "On the taxation front, we hope to see rationalisation of GST rates on health and life insurance which will make insurance products more affordable and accessible for all."

1:27 PM

Retirees seek exemption on debt fund tax to beat inflation: Capital League

Rajul Kothari, partner at Capital League, said, "The recent tax changes for debt funds have severely impacted retirees seeking safe, non-volatile investments to beat inflation on a post-tax basis. With long-term capital gains tax on pure debt funds now equivalent to fixed deposits at a marginal rate of tax, retirees are forced to consider hybrid funds with a minimum 15-20 per cent equity component to achieve tax-efficient returns."

 

Kothari added, "This exposes them to unnecessary risk. To address this, I urge the government to exempt long-term capital gains tax for investors above 60-65 years at the time of redemption. This would encourage the use of pure debt funds and products, providing retirees with a stable and low-risk investment option, uncorrelated with the volatility of equity markets."

12:58 PM

Call for strong policies to boost renewables and electric vehicles: Recyclekaro founder

Rajesh Gupta, founder and director, Recyclekaro, said, "As India moves towards a more sustainable future, the Union Budget 2025 is a key moment to boost the country's renewable energy and electric mobility sectors. We hope to see strong policy support and tax incentives that encourage innovation in clean energy solutions like solar, wind, and energy storage, while also prioritising the growth of domestic manufacturing for green technologies."

Gupta further said, "Simplifying regulations, alongside increased funding for renewable energy R&D and grid integration, can help India maintain its position as a global leader in sustainable energy."

12:53 PM

Mining sector pushes for monetary support, mineral law reforms: JSA Advocates & Solicitors

Vishnu Sudarsan, Partner, JSA Advocates & Solicitors, said, "Since the ushering in of the auction regime in 2015, the mining sector has grown from strength to strength, with hundreds of blocks across states having been auctioned so far. Notably, the Centre’s focus on critical minerals (and the new regime to auction mineral concessions) are welcome from the perspective of increasing mining of sustainable minerals that are vital to ushering in the green transition and national security."

 

Sudarsan added, "Another area that merits active consideration is enhancing and sustaining monetary support schemes for mineral exploration (in tandem with and to complement the new exploration licence regime for identified critical minerals), given that India remains relatively under-explored, and with recent years having witnessed a downtick in private participation."

 

“Lastly, the introduction and passage of the new mineral law amendment bill may be fast-tracked, particularly having regard to the long-gestating issue of mining deep-seated minerals in contiguous blocks by existing lessees," he added.