Budget 2025 Expectations Highlights: Defence sector expects moderate budget hike amid modernisation needs

Budget 2025 Expectations Live: Last year’s allocation and expectations for FY2025-26

In the FY2024-25 budget, the defence sector was allocated Rs 6.22 lakh crore, a 4.79% increase from the previous year. This included Rs 1.72 lakh crore for capital expenditure. Analysts expect this year’s capital expenditure to rise to Rs 1.9 lakh crore, with a large share likely to be directed towards mobility vehicles and infrastructure for the Navy.

Budget 2025 Expectations Live: Promoting retirement savings and EV adoption

Grant Thornton Bharat’s Akhil Chandna highlighted that increasing the NPS tax deduction limits and relaxing NPS withdrawal rules could encourage greater retirement savings. Additionally, clarity on perquisite taxation for electric vehicle (EV) use and the reinstatement of EV purchase deductions are expected to promote green energy adoption.

Budget 2025 Expectations Live: Flexibility on house property loss set-off

A majority (53%) of respondents want the government to allow the set-off of house property losses under the new tax regime. Meanwhile, 47% call for a hike in the set-off limit or complete removal of the Rs 2 lakh limit under the old tax regime.

Budget 2025 Expectations Live: New vs. old tax regimes

Although 72% of taxpayers have opted for the new income tax regime, the majority (63%) still favor increased incentives under the old regime. To make the new tax structure more appealing, nearly 46% advocate for lowering tax rates, while 26% suggest raising exemption limits.

Budget 2025 Expectations Live: Majority favor lower income tax rates

A significant 57% of individual taxpayers have called for a reduction in taxes in the upcoming Budget, according to Grant Thornton Bharat's pre-budget survey released on Wednesday. Respondents are looking for measures that will increase their disposable income.

Budget 2025 Expectations Live: COAI recommends speedier disposal of appeals

Highlighting delays in appeal resolutions, COAI has recommended:

Introducing statutory timelines for time-bound disposal of appeals by the Commissioner of Income Tax (Appeals) [CIT(A)].

Improving data reconciliation in Form 26AS to include detailed transaction information, such as invoice references and deductor PANs, to streamline income reconciliation for telecom operators.

Budget 2025 Expectations Live: COAI recommends clarifications on service tax

COAI has requested relief from Service Tax liabilities arising from the AGR recalculation mandated by the Supreme Court, highlighting:

The need for exemptions on incremental License Fees (LF) and Spectrum Usage Charges (SUC) to avoid unjust financial strain.

Exemptions for the period from April 2016 to June 2017, when service tax was applicable but GST credits are not admissible.

Streamlining processes for cash refunds under the Reverse Charge Mechanism (RCM).

Budget 2025 Expectations Live: COAI recommends extension of carry forward of business losses

The telecom sector, which has seen consolidation from over 10 operators in 2017 to just three private and one public sector company today, continues to face financial strain due to:

Intense price competition.

The Supreme Court’s 2019 AGR ruling, which imposed additional dues on telecom operators.

To alleviate this, COAI has recommended:

Extending the carry forward period for business losses under Section 72 of the Income Tax Act from 8 years to 16 years.

Introducing a restriction on dividend distribution within five years of utilizing set-off losses, with a proposed additional dividend distribution tax of 25% to prevent misuse.

Budget 2025 Expectations Live: COAI submits budget recommendations to strengthen telecom sector

Abolition of Regulatory Levies

To ease financial burdens on Telecom Service Providers (TSPs), especially amidst significant investments in 5G deployment, COAI has proposed:

Suspension of the Universal Service Obligation Fund (USOF) levy: The current 5% contribution of Adjusted Gross Revenue (AGR) to the USOF should be abolished or suspended until the existing corpus of over ₹86,000 crore is fully utilised.

Reduction in License Fees: COAI recommends reducing the License Fee from 3% to 1%, limiting it to administrative costs incurred by the Department of Telecommunications (DoT).

Clarification on Gross Revenue (GR): COAI has urged a precise definition of GR to exclude revenue from activities not requiring a telecom license, eliminating ambiguity and reducing unnecessary financial burdens.

Additionally, COAI has suggested that Large Traffic Generators (LTGs) contribute to the development of telecom infrastructure by paying into the USO Fund or a similar Digital Bharat Nidhi Fund.

Budget 2025 Expectations Live: Hospitality space seeks relief to address rising challenges

As India’s hospitality sector grapples with rising competition from neighbouring countries and a manpower shortage, industry leaders are urging the government to address key challenges facing the industry in the upcoming Union Budget.

Hoteliers are calling for a reduction in GST, improved access to affordable credit, and recognition of smaller hotel projects for infrastructure benefits to boost competitiveness.

They say slow growth in the supply of rooms and one of the highest goods and services tax (GST) structures is making India less competitive compared to some neighbouring countries.

India is grossly under-roomed in comparison to the competing Asian destinations, said K B Kachru, President, Hotel Association of India (HAI).

Budget 2025 Expectations Live: Focus on infrastructure key to realizing ‘Viksit Bharat’ vision

Infrastructure development is expected to play a central role in driving India’s economic growth amid lower-than-expected GDP growth this fiscal. In the Union Budget 2024-25, the government allocated Rs 11.11 trillion to the sector, reflecting an 11.1% year-on-year increase.

However, challenges persist.

The Economic Survey 2023-24 highlighted delays caused by land acquisition hurdles, limited private sector participation, and insufficient emphasis on sustainability.

Ministry of Statistics and Programme Implementation (MoSPI) data reveals that 63% of over 1,740 ongoing central sector projects have faced delays, with 25% exceeding budget estimates.

The upcoming Union Budget is likely to focus on addressing these issues to streamline project execution, enhance private sector involvement, and incorporate sustainable practices, advancing the vision of a developed India by 2047.

Budget 2025 Expectations Live: Tax relief likely with higher exemptions, new slab

The Union Budget 2025-26 may bring significant relief to taxpayers under the new tax regime. According to a report by Business Standard citing government sources, annual income of up to Rs 10 lakh could be made tax-free.

Additionally, a new 25% tax slab for individuals earning between Rs 15 lakh and Rs 20 lakh annually is under consideration.

These potential changes aim to make the new tax regime more attractive, addressing demands for increased exemptions and simplified tax structures as part of the government’s broader efforts to boost disposable income and consumption.

Budget 2025 Expectations Live: Find out what Moneycontrol Market Poll suggests

Experts suggest that while the government may consider tax measures to stimulate consumption amid sluggish growth, the budget’s impact as a catalyst for reviving broader economic growth or earnings is likely to be limited.

This cautious approach reflects the ongoing focus on balancing fiscal consolidation with measures to support economic momentum.

As stakeholders await the February 1 announcement, expectations remain tempered, with the focus shifting to long-term policy consistency and incremental reforms. Read more.

Budget 2025 Expectations Live: No major surprises expected on Capital Gains Tax, experts say

With the Union Budget 2025 just around the corner, market experts largely anticipate that Finance Minister Nirmala Sitharaman will avoid introducing surprises like last year’s hike in capital gains tax.

According to the latest Moneycontrol Market Poll, which gathered responses from nearly 45 participants, including broking firms, mutual funds, alternative investment funds (AIFs), portfolio management services (PMS), and independent experts, the budget is expected to focus on continuity rather than significant overhauls.

Budget 2025 Expectations Live: Customs reforms - boosting manufacturing and exports

The trade sector anticipates policy measures that ensure stability while addressing challenges ahead. Both domestic and international stakeholders will closely monitor announcements on customs and trade policies.

In recent budgets, customs duties—a relatively small contributor to overall tax revenue—have been streamlined to boost domestic manufacturing, enhance local value addition, improve export competitiveness, and simplify the tax structure. Know more.

Budget 2025 Expectations Live: Simplification of customs framework

The government’s review of the customs structure is focused on addressing issues such as duty inversion, reducing disputes, and making the framework more transparent and business-friendly.

However, flexibility in adjusting rates remains limited for certain tariff lines governed by Free Trade Agreements (FTAs), where fixed rates apply regardless of trade volumes.

The US-India Tax Forum, an important body under the US-India Strategic Partnership Forum (USISPF), has recommended a simplified customs duty structure with just three rates — 0%, 5%, and 10%.

The forum believes this would enhance India’s competitiveness and attract more investments, particularly in sectors like electronics manufacturing. Learn more.