2023 Budget Expectations Highlights: Expect Budget to focus on impact of global economic slowdown, says Chidambaram

India Union Budget 2023 Expectations: Reduce personal tax rates, says expert

Speaking about income tax relief for salary earnersVivekJalan, Partner, Tax Connect Advisory said that the personal tax rates for individuals should be reduced so that there is a degree of equity and fairness in relation to structuring decisions as well as being competitive with other countries.

India Union Budget 2023: Budget will be exercise of managing several objectives, says economist

Madan Sabnavis, Chief Economist at Bank of Baroda, said the 2023 Union Budget will be an exercise of managing several objectives. This will include movement to fiscal prudence, stimulating growth without accompanying inflation, garnering more resources through non-tax measures, and providing sops where necessary.

He added: “As all these objectives would run in different directions, Finance Minister Nirmala Sitharaman will exercise considerable dexterity to move ahead decisively on all counts.”

Live Budget 2023 Expectations updates: Expect Budget to focus on impact of global economic slowdown, says Congress leader P Chidambaram

Senior Congress leader P Chidambaram has said that in the upcoming Budget 2023, the Union Government must focus on addressing issues like the impact of the global slowdown on economic growth, falling exports, and the increase in India’s current account deficit, among other issues.

The former finance minister also said that the 2023 Union Budget should focus on the danger of falling consumption which could lead to lower standards of living given the high unemployment rate and inflation.

2023 Budget Expectations for Real Estate Sector: How can ‘housing for all’ be accomplished

- To encourage consumers to buy affordable homes the Credit Linked Subsidy Scheme (CLSS), which has benefited 2.54 million, should be maintained, said Neeraj Bansal, co-head and COO-India Global, KPMG India.

- Bansal also said the price cap of affordable housing requires a revision to further attract a broader spectrum of homebuyers.

- More tax breaks are specifically required from the perspective of the buyer, he said.

- The government should think about reintroducing the Section 80IBA registration deadline for affordable housing projects, benefiting builders, he added.

- He further suggested that the overall size of the Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH) fund, established under the Special Window for Affordable and Mid-Income Housing, be increased to Rs 50,000 crore.

Live Budget 2023 Expectations Updates: Opposition wants centre to address Adani-Hindenburg row among other issues

Parliamentary Affairs Minister Pralhad Joshi said several regional parties have signalled their intent to also raise issues related to unemployment, price hikes, and the Centre's alleged bias when sharing revenue with states, but he maintained that discussion should follow the rules and be permitted by the Chair.

Budget 2023 Expectations Live Updates: Govt may announce key aspects of its policy framework for pumped storage plants

Union Budget 2023 is likely to announcekey aspects of its policy framework for pumped storage plants (PSP) after a gap of nearly two years. To accomplish this, the government may exempt PSPs off-river or off-stream from environmental impact assessments, which are currently mandatory.

Alok Kumar, Secretary, Ministry of Power, told Moneycontrol that they have proposed that PSPs that are off-river should get faster clearances.

Budget 2023 Telecom Sector Expectations: Telcos want FM to reduce license fees, abolish USOF

India’s telecom sector wants Finance Minister Nirmala Sitharaman to reduce license fees from three percent to one percent as the capital-intensive sector seeks to upgrade technology and expand its network amid nationwide commercial deployment of 5G services.Telecom service providers have also sought the abolition of the Universal Service Obligation Fund (USOF).

Budget 2023 Expectations Live Updates: Investors lower position on long-duration bonds ahead on Budget

Debt market participants have lowered their position in longer-duration bonds ahead of the tabling of the 2023 Union Budget on February 1. They, however, remain invested in the shorter end of the curve on expectations of another year of elevated government borrowings, investors and traders said.

"Looking at the current levels, it seems the markets are light, especially on the long end, and are expecting a heavy borrowing calendar. Chances of any positive surprise are more as major negatives are already factored in at current levels,” said Vijay Sharma, senior executive vice president at PNB Gilts.

Live Budget 2023 Expectations updates: Here’s what the fintech sector wants from Budget 2023

Tax incentives, regulatory clarity regarding acceptable business models in Web3 platform, and loosening of restrictions on merchant discount rates.

- Tax incentives for businesses that support the digitization of financial services.

- Tax incentives associated to mergers and acquisitions (M&A) might result in the consolidation of a highly fragmented industry.

- Relaxed rules around Merchant Discount Rate (MDR)

- Tax benefits for Web3 based platforms would prevent the brain and capital drain that has recently been observed in digital assets, non-fungible tokens, and the Web3space.

- Synchronising legal framework for data privacy across different regulatory authorities to support efficient compliance

Budget Expectations 2023: Finance Minister likely to announce measures for boosting pumped storage hydropower projects

The Union Government is likely to boost pumped storage hydropower projects by exempting off-river PSPs from conducting environmental impact assessment.

The Finance Minister is expected to announce key aspects of the government’s policy framework for pumped storage plants (PSP) in the 2023 Union Budget that will be presented on February 1.

According to senior power ministry officials, the government is likely to exempt off-river or off-stream PSPs from environmental impact assessment in order to boost pumped storage hydropower projects.

2023 Budget Expectations LIVE Updates: This Mumbaikar’s main concern is price of LPG cylinders

Anita Redekar, a canteen worker from Mumbai, wishes the FM Sitharaman would announce a cut on prices of LPG gas cylinders during Budget 2023. She says: "Price of LPG cylinders is very high. Paying Rs 1100 p/m for a cylinder is steep. Being a working mother with two children who earns Rs 11,000 per month, it gets difficult to manage expenses amid rising inflation.”

2023 Budget Session LIVE Updates:

At Pre-Budget all-party meeting, Opposition parties highlight issues such as Adani stocks and BBC documentary ban, among others

2023 Budget Session LIVE Updates: Budget session to begin with President Murmu’s maiden address. Here’s what you need to do

-- The Budget session of Parliament will begin on Tuesday with PresidentDroupadiMurmu’smaiden address to the joint sitting of both Houses.

-- The Economic Survey will be tabled on January 31 after her address, while the last full-fledged Union Budget of theModigovernment before the 2024LokSabhaelections will be presented by Finance MinisterNirmalaSitharamanon February 1.

-- The PMModigovernment is reportedly planning to introduce around 36 bills.

-- There will be 27 sittings of the Budget session

-- It will continue till April 6, but there will be a month’s recess to examine the Budget papers.

Budget 2023 Expectations Live: SEBI proposes changes to share buyback regulations

-- Market regulator SEBI has proposed a change in the share buyback regulations on the basis of an analysis of buybacks conducted by 68 listed companies in FY 2020.

-- The promoters of 19 out of the 68 companies had tendered more shares than their pre-buyback holdings, due to which they paid buyback taxes on the shares tendered by the promoters from their pre-buyback holdings and on the additional shares tendered by them.

-- The taxes had to be paid from the company’s free reserves on behalf of the existing shareholders and promoters at the expense of continuing shareholders.

-- Therefore, SEBI wants changes to be made to the tax responsibility for buybacks from the company to the shareholders.

-- Not only would this change address the tax burden but also make the tax treatment of buybacks more equitable.

Budget Expectations in real estate sector: Affordable housing needs boost, shows ANAROCK survey

ANAROCK's Consumer Sentiment Survey finds that in 2022, demand for affordable housing has sunk precariously. "This demand shrunk to its lowest levels in 2022, with just 26% property seekers looking to buy in this budget segment," it added.

"Budget 2023-24 can push the government's affordable rental housing scheme that was launched post the pandemic. Covid-19 put serious constraints on the lower income groups, causing many to step away from homebuying aspirations altogether. To add momentum to its Housing for All vision, the govt can use the Budget to incentivize ARHCs (Affordable Rental Housing Complexes) which can fill the gap until homebuying capacity in the lower income groups improves," stated Anuj Puri, Chairman, ANAROCK Group.

Union budget 2023: CEA V Anantha Nageswaran and team to author Economic Survey 2023

-- The 2023 Economic Survey is being authored by Chief Economic Adviser (CEA) V Anantha Nageswaran and his team.

-- Nageswaran spearheading the drafting of the Economic Survey for 2022-23.

-- The CEA is also a key player in the making of the Union Budget 2023-24

-- He has a PhD in finance from the University of Massachusetts Amherst and an MBA from IIM, Ahmedabad.

India Union Budget 2023: BRS MPs plan to raise Adani issues in Budget session

BRS President and Chief Minister K Chandrashekhar Rao has directed party MPs to expose the Prime Minister Narendra Modi-led Bharatiya Janata Party government at the Centre, which is allegedly pursuing “anti-people policies”.

They have also been directed to raise the ongoing issue concerning the Adanis at the upcoming Budget session.

Union budget 2023: When will the Budget session commence and other questions answered

-- The Budget Session of Parliament will start at 11 am on February 1

-- The Budget session will commence with President Droupadi Murmu addressing a joint session of both Houses

-- The Budget Session will be held in two parts.

-- The first half of Budget session will be held from January 31 and end on February 13.

Budget 2023 Expectations Live Updates: Will FM offer liquidity booster to push financial inclusion?

Fintech industry experts and NBFCs are hopeful the government would propose measures to increase financial inclusion. They also include enhanced liquidity infusion along with initiatives to improve partnerships between banks and NBFCs.

Budget 2023 Expectations Live Updates: What is Economic Survey?

-- The Economic Survey is the official report card of the country’s economy. It is tabled by the Union Finance Minister a day ahead of the Union Budget.

-- The document comes with details of the state of the country’s economy, its prospects, etc.

-- It also contains sectoral overviews of the reforms required.

Budget 2023 Expectations Live Updates: Insurance sector expects Budget to outline policy measures to support aim of ‘Insurance for all’ by 2047’: Vivek Nath

The risk and insurance sector in India is now moving from a phase of evolution to a phase of revolution as it aims for ‘Insurance for all’ by 2047’ and the industry expects the 2023 Budget to outline policy measures that move the country in that direction while increasing insurance penetration and safeguarding consumer interest, said Vivek Nath, Head of India, Willis Towers Watson consulting firm.

“Some of these measures include the relaxation of the minimum entry capital requirement in order to bring in FDI, cutting edge technology and best practices in a way that safeguards policyholder interest. Considering the medical inflation, the Budget should consider reduction of the GST applicable on retail insurance to improve insurance coverage,” he further said.

Nath added: “While there is significant focus on solar and renewable energy, industry in general, is prioritising actions towards a low carbon economy and the budget should outline policy measures that will improve assessment, measurement, mitigation and transfer of climate or climate-related risks including via insurance.”

Union budget 2023: Economic Survey 2023 to be tabled tomorrow

-- Union Finance Minister Nirmala Sitharaman will be tabling the 2023 Economic Survey in Parliament on January 31, a day ahead of presenting the Union Budget.

-- The pre-budget Economic Survey will contain projections for economic growth for FY22 and FY23.

-- Chief Economic Advisor V Anantha Nageswaran will present the survey to the public later at a press conference

Budget 2023 Expectations Live: FM should incentivise co-living segment, says Deepak Anand of Housr

- Co-founder and CEO of Housr, Deepak Anand, said the co-living market in India is growing by leaps and bounds and as per a report published by Makreo Research and Consulting, it is expected to cross USD 1.0 billion Mark by 2025.

- “Considering the promising future of co-living, the incentives for the segment will further fuel its contribution to the economy. In the new budget, we would request the government for easier credit to encourage the growth of the co-living sector along with reducing corporate tax to spur economic growth,” he said.

Union budget 2023: BRS MPs may boycott President’s address during Budget session

BRS MP K Keshava Rao has said a decision will soon be taken on whether they will be boycotting the President's address during the Budget session of Parliament.

Income tax slab changes: Households looking for relief in Budget as dip in income expected: LocalCircles survey

Over half of the households surveyed by online platform LocalCircles across 309 districts expect their income to decline by up to 25 percent resulting in a dip in savings; they are looking for relief in the upcoming Union Budget 2023.

“Our survey indicates that the majority of households in the country are facing the squeeze and in community discussions thousands of inputs were received by LocalCircles about lowering income tax rates or increasing deductions and exemptions,” LocalCircles founder Sachin Taparia said.

Budget 2023 Live Updates For Homebuyers:

"In order to curtail inflation and promote growth, the Reserve Bank of India went on a repo-rate hiking spree in the year 2022. It has hiked the policy rate by 225 basis points since May 2022 and we may expect the central bank to increase the policy rates a few times in 2023 as well," saidV Swaminathan, executive chairman, Andromeda Loans and Apnapaisa.

"With the Union Budget 2023 around the corner, the government may introduce conducive measures to provide relief to borrowers. Hopefully the government will consider the long-pending demand to enhance the deduction limit against home loan interest from Rs 2 lakh to Rs 3 lakh," he added.

Budget 2023 Live Updates: HSBC expects Union Budget to choose macro stability over growth

Budget 2023 is expected to prioritize macro-economic challenges over growth and focus on providing a credible fiscal consolidation roadmap, according to Pranjul Bhandari, chief India economist at HSBC Holding Plc.
High inflation and widening trade deficit that posed macroeconomic stability challenges last year will lessen in severity, but growth will taper off too, Bhandari said in an interview Monday with Bloomberg Television’s Rishaad Salamat. “It’s hard for the two to co-exist.”
The upcoming Union Budget on February 1 will be the final-full year Finance Bill before Lok Sabha elections in 2024, and comes as high interest rates temper demand globally and at home.
In such a scenario, the government will look to bring down fiscal deficit to a “more sustainable” level, Bhandari said, pegging the gap at 5.8% of the gross domestic product for the financial year starting April 1, from 6.4% in the current year. The restructured food subsidy bill and improved expenditure efficiency will help, she added.
The manufacturing sector may see some more incentives, especially in the electronics and small scale industry, but the government “would not be extremely profligate,” Bhandari said.
The Reserve Bank of India may increase its benchmark rate by 25 basis points in Feb 8. monetary policy announcement, “but we also think this is perhaps the last rate hike for now,” she said, as softening food prices bring down the overall headline inflation within the target 2%-6% range.

Budget 2023 Live: YSR Congress demands caste-based eco census at all-party meet ahead of Budget 

The YSR Congress on January 30 demanded a nationwide caste-based economic census at an all-party meet convened by the government ahead of the Budget session of Parliament.

The party said that it is necessary to know the economic status of the backward castes who are "lagging behind" on social and development indicators. Backward castes account for over 50 per cent of the total population and the census will help find their economic status, YSR Congress leader Vijaysai Reddy said. The ruling party in Andhra Pradesh has joined the likes of the JD(U) and the RJD, both of which have demanded a caste census.

Budget 2023 Live Updates: Various deductions limits should be enhanced

Given the sluggish growth in the housing sector, the exemption limit of Rs 2 lakh on home loan interest payment should be raised to Rs 3 lakhs. Two-fold benefits will be a relief to salaried-voters in the next 16 months election season & also a push to dawdling the real estate sector which accounts for 8 per cent of GDP, saidShailendra Kumar, Chairman, TIOL Knowledge Foundation, a fiscal think tank.

"Given the precipitous drop in the national gross savings from 37 percent to 27 per cent, the perimeter of Sec 80C needs to be expanded to RS 2.5 lakh. This will put more money in the hands of the government to bankroll the infrastructure sector or higher capex."

A complete recast of capital gains regime is overdue. The I-T Act needs to be decluttered and level-playing is required in the treatment of different assets.Given the exigency of health expenditure, and the risk of fourth Covid wave, Sec 80D limit should be hiked to Rs 40,000,he said.

Budget 2023 Income Tax Expectations: Personal tax rates should be rationalized and brought in line with the corporate tax rates

It has become an urgent necessity to reduce the personal tax rates for individuals so that there is a degree of equity and fairness in relation to structuring decisions as well as being competitive with other countries. Because, after the reduction of corporate tax rates a few years back, the differential between personal and corporate tax has widened.

"The highest marginal rate for individuals has now gone up to 42.74% (highest slab) against the normal Corporate Tax Rate of 25.17%. The high personal tax rate for individuals in India stands out as an exceptionally high rate as compared to other countries. For example, the maximum rates of personal income in Hongkong are 15%, Sri Lanka – 18%, Bangladesh – 25% & Singapore – 22%. Further, the huge gap in the tax rates as mentioned between individual and corporate tax rates is leading to several structuring decisions being adopted in favour of the corporate model (for example, proprietorship business moving to company format)," said Vivek Jalan, Partner, Tax Connect Advisory, a multi-disciplinary tax consultancy firm.

"Further, The Finance (No.2) Act, 2014 had fixed an overall limit to Rs.1.5 lakhs in respect of deduction under section 80C of the Act. Even if we consider an inflation of 6% per annum, the deduction Needs to increase to at least Rs.2.5 Lakhs. This would act as a fillip to investments and also generate greater savings for the taxpayer," he added.

Budget 2023 Live Updates: Deductions limit should be raised in line with inflation

"80C is the only general Income Tax section available to everybody for saving some tax. This section covers a huge canvas from PPF/EPF, ELSS, NSC, NPS and SSY to Life Insurance policies, tuition fee and principal part of home loan. Even after increasing it to 3 Lakhs, a major part of one’s investments in these instruments for a middle-income person remain taxable," said Col. Sanjeev Govila, CEO, Hum Fauji Initiatives, a financial planning firm

"The 80C limit was last revised from Rs 1 Lakh to 1.5 Lakhs in FY 2014-15, 8 years back, when the Cost Inflation Index (CII) was 240. It is 331 now and considering current inflation only at 6%, it comes out to about 351 for the next FY for which this increase is being discussed. With that, the current limit should be about Rs 2.19 Lakhs.However, also considering that the Govt takes an unduly long time to revise this limit, it should go to at least Rs 2.5 Lakhs, and preferably to Rs 3 Lakhs," Govila added.

Budget 2023 Live Updates: B Gopkumar, MD & CEO, Axis Securities on economic growth

As this is the last full-year Budget before the Union Election in 2024, we expect it to be growth-oriented. The primary focus of the Budget is likely to be on job creation and investment-driven growth. The real estate sector may get a boost with some announcements to expand the current income tax benefit for housing. Measures to stimulate rural spending and infrastructure development would be the highlight in the Budget. Any roadmap to build and bolster the entrepreneurship culture can promote self-reliance and go a long way in employment generation. Overall, with its focus on growth and development, this Budget may have something for everyone. FMCG, Manufacturing, MSME, and Banking are a few sectors that may see action.

Budget 2023 Live Updates: Government likely to continue to ramp up capital expenditure

Finance minister Nirmala Sitharaman could unveil big spending plans in the Modi government’s last full-year Budget as the Indian economy tries to ward off dangers emanating from the global economic slowdown.

The spending push is critical for crowding in private investments, which could see some hesitancy as pent-up demand slows in the next fiscal.

The government is expected to continue its plan to ramp up capital expenditure in Budget 2023-24, with a special focus on states’ spending on capital assets.

This is in line with the previous budget that saw a bumper hike in the Centre’s capex plans, aimed at pump-priming the economy, reeling under the COVID shock.

Budget 2023 Live: Ease of doing biz, tax relief expected from Finance Minister

"Last year, the budget was predominantly inclined towards the masses and promoted a lot of serious aspects starting from prioritising mental health to encouraging the start-up ecosystem. One of the initiatives that we sincerely applaud is the National Education Policy, introduction to new courses & online learning. This year, we hope the new policies drive the Government’s agenda on Ease of Doing Business across the country and encouraging new startup brands. We could therefore expect some tax relaxations for start-up brands by simplifying the tax laws. This is also for lower income individuals so that they have more cash in hand if the standard deduction limit is increased," saidSneh Jain, Co-founder and Managing Director, The Baker's Dozen.

Budget 2023 Live Expectations: WHat Startups want from FM Sitharaman

"Union Budget 2023-24 is a crucial one, in supporting India’s sustainable growth. It is essential that the budget heeds to the progress of the startup ecosystem. Policy measures towards developing startup-clusters, which promote easy access to capital, incubator programs, federally funded R&D activities, among others will surely assist startups. The growth of the startup sector also depends upon clearer regulations and streamlining the process of obtaining licenses. There are certain benefits which are extended to the Inter-Ministerial Board (IMB) certified startups and not the DPIIT-recognised start-ups. The IMB certifications are difficult to get as 99% of Indian start-ups are not recognised by IMB." saidMadhusudan Ekambaram, Co-Founder & CEO, KreditBee.

"Also, we hope that the government broadens the criteria for tax relief to startup employees to reduce the burden on taxation of ESOP sales. Measures towards incentivising ESOPs with simpler and appropriate tax structures would help provide startups with significant wealth creation opportunities while also helping them attract and retain talent. Also, providing the requisite parity for capital gains tax treatment between unlisted and listed shares as investors in unlisted companies bear higher risk, will remove the complications with respect to classes of assets, tax rates and period of holding and indexation benefits. It will render the investments attractive for investors," he added.

Ahead of Lok Sabha polls, Budget 2023 to test PM Modi’s fiscal resolve 

India will unveil its Union Budget on February 1, testing Prime Minister Narendra Modi’s fiscal mettle seen as key to boosting investor sentiment even as it will likely leave less room for handouts a year before he seeks a third term.

India recently restructured the world’s biggest food program and trimmed energy subsidies to enable about Rs 1 lakh crore ($12.3 billion) in government savings. A Bloomberg survey this month of more than 20 economists showed that the majority expects the budget from the fiscal year starting April to steer clear of populist measures and focus on strengthening manufacturing and creating jobs.

Shunning wasteful expenditure is crucial for India’s robust, long-term growth as it frees up funds to build more roads and ports, enhance logistics linkages that will support Modi’s ambition to make India the new global powerhouse, without bloating the deficit capped at 6.4% of GDP in the year ending March.

Fiscal consolidation is in keeping with Modi’s first budget in 2014. He’s expected to further burnish those credentials as he becomes the first to lead what is likely now the world’s most-populous nation.

Budget 2023: What the fintech space expects from the FM Nirmala Sitharaman

Fintech in India has witnessed rapid growth in recent years, driven by a combination of factors including a large and young population, increased access to technology, and supportive government policies. Some key areas of growth in the Indian fintech industry include digital payments, digital lending, and insurance technology.

Increase spending on Digital skilling: The only way, apart from building digital infrastructure, to rapidly propel fintech growth is in terms of its human assets.

Improved clarity in regulations: To allow robust growth of well-regulated and compliant fintechs, regulatory clarity is needed in multiple aspects. An arrangement where the regulation of non-bank fintechs is not aligned with the regulation of banks (or their subsidiaries) offering similar services will create inefficiencies and risks associated with regulatory arbitrage.

Tax incentives: Provide tax incentives, specifically for companies establishing technology clusters in non-tier 1 cities. Tax benefits on the total expenditure incurred by fintechs involved in the financial inclusion mission are needed.

Budget 2023 Live Expectations: Three things homebuyers want from FM Sitharaman

The real estate sector will be driven by rapid urbanisation as Indian cities grow over the decade. However, the surge in global commodity prices has increased the cost of construction substantially. Besides, rising inflation and interest rates on home loans has further curtailed the affordability of consumers. Experts feel these 3 proposals, if anmounced by FM Nirmala Sitharaman, can relieve the stress on the pockets of homebuyers:

Personal tax relief: The deduction of interest on housing loans may be increased from Rs 2 lakh to Rs 4 lakh, in sync with the market realities considering the ticket size of loans vis-à-vis property cost and the rising interest rates on home loans due to gradual tightening of monetary policy by the RBI.

Capital gains: Presently, gain on property held for more than 2 years prior to the date of sale is considered long-term and is taxable at the rate of 20 percent. However, in the case of the sale of listed shares, the prescribed holding period for long-term capital gain is 1 year and the applicable tax rate is 10 percent. The government may consider providing relief to sellers by bringing taxability of gain on the sale of property at par with that of listed shares.

GST relief: The time-limit to issue credit notes should be linked with cancellations of units instead of the original invoice date. Presently, in most cases, credit note cannot be issued in case of cancellation of units due to a lapse of time-limit and the developers refuse to apply for refund as claiming refund from the department is always a hectic task, which results in increased cost in the hands of the customer.

Budget 2023 Expectations Live: Affordable housing needs boost

India's residential real estate sector looks hopefully to Budget 2023-24 to boost the country's flagging affordable housing segment. The segment had revived after the government began to roll out incentives from 2015. However, the pandemic seriously impacted the affordable housing segment, with both demand and supply shrinking to their lowest levels.

ANAROCK's Consumer Sentiment Survey finds that in 2022, demand for affordable housing has sunk precariously. In 2018, approx. 39% property seekers in the top 7 Indian cities were keen on affordable homes priced within INR 40 lakh. This demand shrunk to its lowest levels in 2022, with just 26% property seekers looking to buy in this budget segment. The upcoming budget presents an opportunity torevitalise the demand.

“One possible way the Budget can intervene is by revising the price bandwidths for homes that qualify as affordable housing, as per the specific market dynamics of different cities,” says Anuj Puri, Chairman – ANAROCK Group. “The size of units that qualify for various affordable housing benefits is currently 60 sq. m. on carpet area. While this is appropriate, the uniform price band of up to INR 45 lakh for affordable housing is not aligned with the market realities of most major cities.”

“More tax sops for housing end-users and investors for affordable housing would also boost demand,” says Puri. “The current tax rebate of INR 2 lakh on housing loan interest under Section 24 of the Income Tax Act must be increased to at least INR 5 lakh. This will add momentum to housing demand, particularly in the cost-sensitive affordable segment.”

“Budget 2023-24 can also push the government’s affordable rental housing scheme that was launched post the pandemic. Covid-19 put serious constraints on the lower income groups, causing many to step away from homebuying aspirations altogether. To add momentum to its Housing for All vision, the government can use the Budget to incentivize ARHCs (Affordable Rental Housing Complexes) which can fill the gap until homebuying capacity in the lower income groups improves.”

Budget 2023 Expectations Live: Despite bad year for RBI's foreign investments, govt may get big dividend

The Centre can expect a hefty dividend from the Reserve Bank of India (RBI) in the 2023-24 Budget even though the current financial year was bad for the central bank's foreign investments.

The RBI keeps its foreign exchange reserves in the form of assets such as gold, foreign currency, deposits in overseas banks, and bonds of foreign governments. Over $200 billion is invested in US government bonds.

But with US interest rates rising sharply in 2022-23, the RBI may have to make record provisions against losses on these investments. The price of a security – for instance, a US government bond – falls as the yield on it rises.

Budget 2023 Expectations Live: Real estate sector wants extension of CLSS

To incentivise first-time homebuyers, the government should extend the Credit Linked Subsidy Scheme (CLSS) for at least three more years until 2027 in Budget 2023, says Pradeep Aggarwal, founder and chairman of Signature Global Group.

CLSS for the Middle Income Group (CLSS for MIG) was announced by Prime Minister Narendra Modi on December 31, 2016. It was initially launched for 12 months until December 2017 and later extended until 2022. It has been granted a two-year extension until 2024.

“The CLSS has been extended until 2024 and should remain the focus of the government for at least another three years. It should be extended until 2027,” said Aggarwal, whose housing company is active in the Delhi-National Capital Region building affordable housing.

“Along with this, the government should consider increasing the definition of affordable housing to homes in the price range of Rs 75 lakh to Rs 1 crore for the segment to remain viable,” he said.

Live Budget 2023 Expectations updates: Here's what pharma sector wants

Leaders of the pharmaceuticals industry have urged the government to give priority to schemes that enhance innovation and research along with tax incentives, in Budget 2023.

Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance, the body representing Indian drug manufacturers, told Moneycontrol that the budget should help fuel innovation and research and development (R&D).

“The budget should outline supportive policies, simplified regulations, and simple GST (goods and services tax) norms to aid in the development of the pharmaceutical industry. Measures to facilitate the ease of doing business will increase investment and contribute to the industry's long-term growth. We are looking forward to the government's support in this,” Jain said.

Budget 2023 Expectations Live: What Real Estate sector wants 

The real estate sector in India has achieved a notable recovery post-pandemic. The Union Budget is expected to provide a boost to sustain the momentum in 2023. The industry and stakeholders at large will be looking at the steps taken by the Government to facilitate overall growt, says Aryaman Vir, Founder & CEO, MYRE Capital. Some key expectations would include:

Increasing HRA for metro cities: The government should consider increasing the percentage of House Rent Allowance (HRA) that employees can claim as tax deductions for those living in metro cities. This will help to offset the higher cost of living in these areas and make it more affordable for people to rent a home.

Increasing max loss cap for income under house property: The government should consider increasing the maximum loss that can be claimed as a deduction for income under house property. This will provide more financial relief for individuals who own multiple properties and are facing losses due to factors such as vacancy or rental income being less than the mortgage interest payments.

Home loan principal repayment deduction: The government should consider creating a separate section for housing loan principal repayment deduction in the Income Tax Act. This will help to make it easier for taxpayers to claim this deduction and will also provide an additional incentive for people to invest in property.

Transparency: The Indian real estate market has been plagued by lack of transparency and standardisation in property transactions, resulting in confusion and mistrust among buyers and sellers. The budget could introduce measures to improve transparency and standardisation, such as mandatory registration of all property transactions and strict penalties for non-compliance.

Budget Session Updates: Economic Survey 2023: Date, time, when, and where to watch

The Economic Survey 2023 will be tabled by Finance Minister Nirmala Sitharaman in Parliament on January 31. After the presentation, a press conference will be held by the Chief Economic Adviser (CEA).

The press conference will be streamed live on Moneycontrol and other official govt handles on Youtube and Twitter.

The document can be downloaded from ‘www.indiabudget.gov.in/economicsurvey‘ after its presentation in Parliament.

Moneycontrol will also cover the Economic Survey 2023 with minute-by-minute updates and expert commentary.

Budget 2023 Expectations Live: On February 1, power stocks will be in focus; here's why

Power sector has become one of the best stock market performers in 2022, thanks to the continuous growth in domestic power demand, momentum in energy transition, and government policy initiatives. In the past one year, the BSE Power index has advanced over 13 percent as against the 5 percent rise in the benchmark BSE Sensex.

Last year, the Nifty Energy index was up over 16 percent as compared to the NSE 500 or the NSE 200 which were up around 4.5 percent. In fact on one, three, or five year basis as well, the energy index has outperformed broader NSE 200 or NSE 500 by over 200-500 basis points, highlighted Azeem Ahmad, Head PMS & Principal Officer, LIC MF.

The year-to-date power demand in India is up 11 percent due to low base and normalisation after Covid-19, IIFL Securities highlighted. Though over the next 12 months, growth should normalise to 5-7 percent on-year, led by states such as Maharashtra, Gujarat, Uttar Pradesh, Tamil Nadu, Rajasthan, it said.

Budget 2023 Income Tax Updates

FM Sitharaman may announce tax sops in the upcoming Budget that could benefit a larger section of the middle class, which is battling inflation rise and job cuts.

Reportedly, the finance ministry is reviewing proposals sent by various government departments on specific steps which may be announced in the Budget, benefitting a large section of the middle class.

The government has not raised income tax exemption limit from Rs 2.5 lakh which was fixed in 2014 by the then Finance Minister Arun Jaitley in his first Budget. Also the standard deduction has remained at Rs 50,000 since 2019.

Several experts are of the opinion that the exemption limit as well as standard deduction need to be increased to compensate salaried middle class for elevated level of inflation.

Budget 2023 For Startups: US venture capitalists hope for a big boost

US venture capital firms investing in India are expecting the Union Budget 2023 to support the growth and development of the startup ecosystem in the Asia's third largest economy.

Finance Minister Nirmala Sitharaman is scheduled to table the Union Budget for the financial year 2023-24 before parliament on February 1. This will be the last full budget of the current government ahead of Lok Sabha elections in 2024. The venture capitalist community in the United States has high hopes from the FM given the large number of unicorns emerging out of India in recent years.

Arun Kumar, managing partner of Celesta Capital, believes that the venture capitalists want to capitalise on Indian talent and invest in them. As a US-based venture capital firm investing in India, we are keenly interested in policies and initiatives that will support the growth and development of the startup ecosystem in the country, Kumar said.

Budget 2023 Expectations from MSME sector:  Simplification of tax structure, easy access to credit

Dinesh Agarwal, Founder & Chief Executive Officer, IndiaMART wants the government to simplify the tax structure. "My expectation from Budget for MSMEs has always been the same, which is the simplification of Tax regulations and other compliance. Usually, small businesses are a one-man army, or at best, functions with limited manpower. Hence, getting the compliancedone is costly and time-consuming. Its simplification will help MSMEs to devote more time to their business and innovation," he said.

Agarwal also feels, GST needs to be simplified. "Implementation of GST has simplified the tax regime as in the erstwhile vat regime, it was quite complicated. Although, it still needs further simplification," he explained.

Union Budget live updates: Why buybacks should be taxable in the hands of existing shareholders

When a domestic organisation buys back its shares from the public, it has to pay about 23.3 percent tax on the distributed income. The distributed income is the difference between the amount paid by the organisation to buy back the shares and the amount it received when the shares were originally issued.

While a lower number of shareholders tender their shares and exit the company (partially or fully), it adversely hits the interest of other shareholders. The company will have to use its own funds to pay taxes on the distributed income, reducing the overall value of the remaining shareholders’ investments.

When a company conducts a buyback, it can improve its future earnings per share (EPS) by reducing the number of shares outstanding. However, if the company is required to pay taxes on the distributed income, it will have less funds available to reinvest. As a result, the EPS may not reach the same level if the shareholders had paid the taxes on the distributed income.

Budget 2023 Live Expectations: Experts feel capital gains tax should be rationalised

Experts feel that the Union Budget must bring in a simpler income tax return form for assesses having only capital gains or dividend or interest income, along with simplification of the capital gains tax regime.Under the income tax law, gains arising on the transfer of capital assets — both movable and immovable — are charged to tax under the head 'Capital Gains'. The tax rate is different for different asset classes.

Deloitte India Partner Rohinton Sidhwa said the holding periods for different types of assets and the number of tax rates for different types of capital assets should be reduced to a maximum of 1-2 periods or rates (along with related surcharges). "Economic and commercial rationale dictates that the set-off of all capital losses (particularly long-term capital loss against short-term capital gains) be allowed seamlessly. Finally, the introduction of a single and simpler tax return for assessees (resident & non-residents) earning only capital gains/ dividend/ interest income would go a long way in easing filing challenges," Sidhwa said. The Finance Ministry is already working on a user-friendly common income tax return form for all taxpayers and an announcement to this effect is expected in the 2023-24 Budget to be unveiled on February 1.