Interim Budget based on long-term vision: FTCCI

Hyderabad: Telangana industry leaders on Thursday welcomed the Interim Budget 2024-25 presented by Finance Minister Nirmala Sitharaman, saying the measures announced support the total growth of India’s economy. Federation of Telangana Chambers of Commerce and Industry (FTCCI) said the Budget is based on long-term vision with no populist measures. The tax committee of the industry body, though not looking forward for major tax proposals, expected an Amnesty scheme for small traders, and MSME’s facing penalties under Goods and Service Tax.

Speaking about the Amnesty scheme for GST, Mohd Irshad Ahmed, Chairman, GST Committee-FTCCI, said that small traders and MSME’s are being repeatedly chased by tax officers and asked to pay up penalties. So, the tax waver scheme would have benefitted these traders. “We are talking about the real issue in GST that traders are facing now. The small traders and MSME’s, because of lack of knowledge about the new GST rules, have committed so many errors during those initial two fiscal years, (FY 2017-19) the effect of which they are seeing now, in terms of tax demand, interest and penalties. We were expecting Amnesty scheme for these small players for the initial first two FY’s.”

The Finance Minister Nirmala Sitharaman on Thursday said there are no changes in tax rates for direct and indirect taxes. Meela Jayadev, president, FTCCI said that as it is an Interim Budget there has not been any announcement regarding relief concerning the income tax slabs.

The government has also proposed to withdraw old disputed direct tax demands of up to Rs 25,000 till FY10 and Rs 10,000 for 2010-11 to 2014-15. “Only after the full-fledged budget is presented we can expect any relief from income tax point of view. Right now, the two proposals announced is write-off of old disputed direct tax demands and extension of I-T exemption for IFSC related startups. The write-off is not for all but for the one’s facing tax dispute. It is more for procedural ease which they wanted to give. Secondly, IFSC related there are many startups that have income tax exemption but as it ended on January 1, 2024, it has been extended by a year to promote the ongoing project and not disturb them,” said Sudheer, Chairman, Direct Tax Committee-FTCCI.

The full-fledged budget that will be announced in July 2024 will give better clarity on the financials which is not clear in this interim budget, said Senior vice president, Suresh Kumar Singhal, FTCCI.