Tag: Union Budget 2024

This Budget Burdens Honest Taxpayers & Small Businessmen

‘This Budget Puts More Burden On Honest Taxpayers, Small Businessmen’

By LokMarg

Suresh Singh Chauhan, a businessman from Lucknow, says the taxation structure needs to be given a second thought to help small businessmen. His views:

In this Union Budget, the government has tried to paint a rosy picture to the tax-paying population i.e. the middle and the upper middle class by bringing those under the ₹5 lakh slot along with the ₹3 Lakh slab. This is merely dangling a carrot in front of the already burdened class and, in a way, will further drain its earning. Ideally, if the government wanted to reward the taxpayer, it should not have at all disturbed the lower limit and created more slots between the existing tax slabs.

Such a move would not only have increased the revenue of the government but also encouraged the earning class to honestly pay taxes as they could have had more slab options. For the business class too, the budget provisions are putting an extra burden. For example, in my business of furnishings and modular kitchen, I am now supposed to pay a tax of 30 per cent if my establishment generates a business of ₹30 lakh. In addition to this, I am also liable to file my Income Tax Return on my profits and that too will be attracting taxes because of the Income Tax slab! The government should have given a thought on this double taxation but alas!

Similarly, the government increased the STCG (short-term capital gains tax) and the LTCG (long-term capital gains tax) by 5 per cent at the existing 15 per cent. As far as I remember, the government, while introducing the Security Transaction Tax (STT) claimed that it was introduced to eliminate STCG and LTCG. But surprisingly, both have increased without a genuine reason.

ALSO READ: ‘Middle-class Housewives Feel Cheated By This Budget’

Another aspect that the government missed was the provisions of taxations on imports. Whatever minimum ‘corrections’ that have been made in the imports structure will definitely increase the prices of goods in the furnishing and modular home designing sector by five to six per cent. Our trade is at present covered under the GST and duty and what I would suggest is that the government should have followed a ‘One Country One Tax’ structure that will help India prosper in each and every aspect.

There should have been more incentives and relaxations on in house manufacturing so as to give its own idea of ‘Make In India’ a push. If the government opens up its market and offers more lucrative incentives for manufacturing in India, I can bet that we can easily break the monopoly of China in not more than a decade.

However, there are also a majority of decisions that could well be praised like the credit guarantee scheme for the MSMEs, abolition of the Angle Tax, allocations for affordable housing schemes, rural development for upgradation of rural infrastructure, health care, etc.

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As told to Rajat Rai

Budget Puts More Money In Common Man’s Pocket

‘This Budget Puts More Money In the Common Man’s Pocket’

By LokMarg

Mitali Chopra, a certified etiquette and protocol consultant, says the 2024 Budget will have positive impact on middle-income households. Her views:

Before I list the key takeaways for of the Union Budget 2024 for the common man, I would like to applaud our Finance Minister Nirmala Sitharaman for presenting her seventh Financial Budget in a row, which is a record in itself. On a cursory glance, the budget seems to be more macro-oriented but a closer look at the fiscal aspect reveals that it has something for everyone, including the housewives charged with budgeting of a household.

While surfing through the net, I chanced upon an article which indicates that the total contribution of non-working women to the economy, just through efficient management of their households, is around 22.7 lakh crore which is almost 7.5 percent of the GDP. So, let’s have a closer look at what the government has provided for this large segment in the recent budget.

First things first. With the lowering of customs duty on gold, the price of the yellow metal has gone down. And it was time to harness it, what with skyrocket prices each year. This is the right time to buy jewellery.

ALSO READ: ‘Budget Seeks To Balance Development and Coalition Compulsion’

Second, with the changes in the tax bracket, many households will benefit with some surplus cash in hand. This is important especially for the middle class that is always trying to make ends meet while trying to raise their social status.

Thirdly, and I feel most importantly, the government has created a great push towards empowering women by charging lower stamp duty on property bought in the name of a lady. It is a big step towards consolidating a woman’s position in the family unit. And this was long awaited.

Fourthly, education loans for higher education will be more easily available. This too comes as a respite for middle class household. Housewives had to constantly worry about their kids’ education. At least one stress less!

On the hindsight, capital gain on equity, especially short-term investment has gone up. So, this might prove detrimental for housewives who could have been investing small amount of their savings in the share market. But again, that would be a very small number. Not everyone has interest in the share market.

To sum it up, there is a clear indication in the budget to leave money in the hands of individuals to spend on consumables while discouraging savings. It’s time to shop!

I would like to end by saying that it seems to be a moderately good budget for a common man.

In the forthcoming budgets, perhaps we will see more concrete efforts being made in terms of creating work from home opportunities for housewives in various government sectors to empower this vast intelligent, efficient segment while ensuring more contribution towards the GDP from their end.

The narrator is the founder of Manners Matter in India. Her industry experience spans over 25 years and enlists a Crème de la crème clientele

As told to Deepa Gupta

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Middle-Class Homemakers Feel Cheated By This Budget

‘Middle-Class Homemakers Feel Cheated, Neglected By This Budget’

By LokMarg

Shalini Bana, a housewife living in Noida Extension, says she will not have to run her household on an even tighter budget as the relentless rise in grocery prices go unchecked. Her views:

The recent announcements in the Union Budget has left me, a middle-class housewife in my 40s, with a deep sense of disappointment and frustration. As someone who meticulously manages my family’s finances, I was eagerly awaiting the budget, hoping for some relief or measures that would ease the financial burden we carry daily. However, what I found instead was a series of decisions that seemed to widen the gap between hope and reality for families like mine.

For years, the middle class has borne the brunt of heavy taxation, and this budget is no exception. While the government tom-toms about its focus on infrastructure and other big-ticket projects, there is a glaring absence of tangible benefits for middle-class households. Our income bracket often feels like the forgotten child of the economy—too wealthy for subsidies and too poor to enjoy luxuries without consequence. The tax relief measures, if any, were negligible, failing to account for the ever-increasing cost of living that erodes our purchasing power.

One of the most pressing issues is the relentless rise in grocery prices. As someone who manages household expenses, I see the direct impact of these price hikes every time I step into a supermarket. The cost of daily essentials like fruits, vegetables, and grains has skyrocketed, forcing me to make tough decisions about what goes into our shopping cart. It’s not just the food items; even basic household necessities such as cleaning supplies and personal care products have become more expensive. Despite all the budgeting and planning, I find myself struggling to make ends meet, and this budget offers little to alleviate that burden.

Bana says middle-class incomes do not match with rising inflation

Moreover, the surge in gold prices is another blow to the middle-class family. Traditionally, gold has been a safety net and a reliable form of investment for us. It’s something we have relied on for generations, whether for weddings, cultural ceremonies, or as a hedge against inflation. However, with prices at an all-time high, even the thought of buying gold is daunting. This budget does nothing to address this issue, further alienating middle-class savers like us.

ALSO READ: ‘Budget Seeks to Balance Development & Coalition Compulsion’

The irony lies in the fact that while the economy is touted as growing, the benefits of this growth are not trickling down to families like mine. Our expenses continue to climb, and our incomes do not match this rate of inflation. Education costs for our children are increasing, healthcare is becoming more expensive, and our savings are dwindling. The promise of better infrastructure or digital advancements holds little weight when the daily realities of making ends meet feel like a never-ending struggle.

The lack of focus on financially relieving the middle class in this budget is disheartening. We need policies that understand and address the challenges faced by families like mine—policies that provide tax relief, control inflation, and make essential goods affordable. We need a budget that prioritizes the needs of the middle class, recognizing our role as the backbone of the economy.

In all this budget has left me with a sense of despair and a feeling of being unheard. As a middle-class home budget maker, I hoped for measures that would offer some respite from our financial challenges. Instead, I am left to navigate the same struggles with an even tighter budget, hoping for a future where our needs and contributions are acknowledged and valued.

As told to Deepti Sharma

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Viksit Bharat Goal & Coalition Compulsions

‘Budget Seeks To Balance Viksit Bharat Goal & Coalition Compulsions’

By LokMarg

Prof. Dinesh Yadav, who teaches Economics in Lucknow University, says the government has kept its focus on creating more jobs for youth while also practising its coalition dharma. His views:

If one reads the fine print of the Union Budget 2024, you can clearly see it is primarily aimed at the youth. The financial plan of the Budget underlines its strong focus on upskilling initiatives with a strategic allocation of ₹2 lakh crores for schemes dedicated to enhancing both employability and employment in various sectors. Though late it is heartening that the Union government has understood the long term impact of creating more jobs for professionals and students.

Take for example, the move to scrap the Angel Tax. This welcome step will benefit the education and technology sector by encouraging opportunities for investment, scalability and growth. This will not only provide tax certainty but will also prevent unintended consequences on foreign investments.

Since 2014, the Central government has consistently focused on skill development by opening various training units at district level. The provisions in this Budget for skill development breathes new life in the initiative and will definitely be a booster for supporting the youth over the next five years. However, implementation will as always remain a key factor towards its success.

Now let’s see the contentious part: allocating monetary largesse to Bihar and Andhra Pradesh. Clearly, the government opened its treasury for the two states due to coalition compulsions. This is not a hidden fact that the stability of this government depends on the support from the ruling parties of these two state. Simply put, this is the political component of the financial document.

ALSO READ: ‘Skill India Course Better Than A Graduate Degree’

The government gave a sigh of relief to the working class regarding personal income tax by increasing the standard deduction for salaried people, choosing the new tax regime to ₹75,000, which was earlier ₹50,000. Increasing the lowest income slab from ₹2.5 lakh to ₹3 lakh is another populist addition to the budget.

Reengineering the skill loan scheme, that now offers loans up to ₹7.5 lakh and the comprehensive education loan scheme of up to ₹10 lakh for higher studies are also laudable steps taken by the government as both these initiatives will create a foundation for educational growth from early childhood through higher education.

As expected, the government has given ₹1.52 lakh crore for agriculture and related sectors as against last year’s allocation of ₹1.25 lakh increasing the budget by 21.6%. However, despite the continuous demand of farmers, no announcement has been made in the budget regarding Minimum Support Price and the amount of Kisan Samman Nidhi has also not been increased – it remains only ₹6,000 at the previous year.

This budget seems to be in line with the government’s vision of a developed India – Viksit Bharat, as they call it – by 2047. However, instead of meeting the expectations of taxpayers, businessmen, students and youth, the Modi government appears to be delivering a positive financial environment while fulfilling the commitments of the coalition dharma. Despite the expectations of farmers’ loan waivers, more and more employment generation for youths, extra tax exemption to salaried employees and businessmen and multi-developmental budget to backward areas, the budget simply followed its corrective path.

As told to Rajat Rai

For more details visit us: https://lokmarg.com/