THIS YEAR IS the year of the National Election and there will be a new government. Even if the political composition of that government is the same as the present one, technically, it will be a new government. India is on a trajectory for Amrit Kaal, with an aspirational target of becoming a developed economy (interpreted as high income) in 2047. The year 2024 is roughly midway and is time to take stock and review. Also, the target of a $5-trillion economy will be reached midway—or a few months earlier—into the term of the 2024-29 government. Not to forget Sustainable Development Goals (SDGs), with a terminal goal of 2030; most countries have deviated from this, India less so. Several people will suggest comprehensive reform agendas for the new government. But whatever the case may be, the new government needs to look at the following agendas.
First, there are direct taxes. The ultimate goal of direct tax reform is a simplified system, with removal of exemptions, so that compliance costs and litigation are reduced. For both personal income taxation and corporate taxes, there are two channels, one with fewer exemptions and lower rates. But for both channels, personal and corporate, the fewer-exemption route is not yet attractive enough and needs to be incentivised more. Stated more strongly, one needs a direct tax code with zero exemptions, in the process, unifying personal income rates (which unincorporated enterprises also pay) and corporate taxation. This cannot be accomplished overnight, but the Budget for 202425 can set the tone and timeline.
WITH INDIA BECOMING A MEMBER OF THE UN STATISTICAL COMMISSION IN JANUARY 2024, IT IS TIME TO REVIVE ITS ONCE-RESPECTED STATISTICS SYSTEM
Esta historia es de la edición February 18, 2024 de Business Today India.
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Esta historia es de la edición February 18, 2024 de Business Today India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
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"OFFER MORE SOPS FOR THE NEW TAX REGIME”
Dinesh Kanabar, CEO of Dhruva Advisors, on the tax-related measures expected in the Budget, reforms, and more
IN SEARCH OF A BOOSTER SHOT
TO BOOST GROWTH, THE GOVERNMENT MAY FOCUS ON INCREASING CAPEX AND BOOSTING DOMESTIC CONSUMPTION, PARTICULARLY TARGETING THE MIDDLE CLASS. THIS COULD PROVIDE A FILLIP TO STOCKS IN THOSE SECTORS
HEALTH BOOST
THE HEALTHCARE SECTOR IS EXPECTED TO RECEIVE A SHOT IN THE ARM IN BUDGET 2025-26, WITH A FOCUS ON PRIMARY HEALTHCARE, DIGITAL HEALTH, AND BOOSTING PHARMACEUTICAL MANUFACTURING AND RESEARCH. BUT CHALLENGES LIKE THE SHORTAGE OF HEALTHCARE PROFESSIONALS REMAIN
"Indian aviation to see double-digit growth for the next 30 years"
Vinay Dube, Founder & CEO of Akasa Air, on the country's aviation sector, why the airline was set up, and more
TIME TO BE SMART
This year could be a good time to take home some profits, reduce risk, and shift to large-cap investments
CLOTHES MAKETH A MAN
THE MEN’S LUXURY MARKET IN INDIA, ONCE A NICHE SEGMENT, IS WITNESSING AN EXTRAORDINARY RISE AND IS THRIVING, THANKS TO SOCIAL MEDIA AND RISING DISPOSABLE INCOMES
Front-running Redux
Ketan Parekh has again been accused by Sebi. This time the allegations are of front-running, an unethical practice in financial markets
Triumph of Engineering
The Udhampur-Srinagar-Baramulla Railway Line in J&K is set to expedite trade and tourism
MAKING A MARK
IN A LANDSCAPE DOMINATED BY THE BIG FOUR ACCOUNTING FIRMS, DHRUVA ADVISORS HAS STRUCK IT BIG ON THE BACK OF ITS TAX AND REGULATORY ADVISORY SERVICES, ASSISTING SOME OF THE MARQUEE DEALS OF INDIA INC.
TIME FOR A TAX BREAK?
INDIVIDUAL TAXPAYERS LOOK FORWARD TO THE BUDGET EVERY YEAR HOPING FOR A BIG TAX BREAK. IT HAS ELUDED THEM FOR YEARS, BUT WITH HIGH INFLATION, MODERATING URBAN CONSUMPTION, AND ROBUST TAX COLLECTIONS, WILL THE MIDDLE CLASS GET A TAX BREAK IN FEBRUARY?
