The much-anticipated full-time Budget for the fiscal year 2024-25 is set to be presented on July 18, 2024, by Finance Minister Smt. Nirmala Sitharaman of Prime Minister Modi’s 3.0 Government. As the nation waits eagerly, there is a palpable curiosity about whether the new Budget will endorse the interim budget or introduce new tax changes. Let’s delve into the key expectations and proposals that could shape India’s economic landscape.

Pre-Budget Discussions and Aspirations
Starting June 20, 2024, discussions with various business federations, associations, and other stakeholders will commence. These discussions aim to address the pressing question: What will the new Budget deliver for both the citizens and the nation? Total Solutions, along with internal and senior advisors, has compiled several financial expectations for the Finance Minister to consider.

Tax Proposals for the Unorganized Sector
Purohits, Astrologers, and Vaastu Consultants
Currently, purohits who perform marriage and other rituals outside temple premises, as well as astrologers and vaastu consultants, often have unrecorded incomes. A proposed system suggests:
*Income Exemption: * Gross receipts up to ₹10 lakhs with nil returns.
*Tax Rates: *
₹10 lakhs to ₹50 lakhs: 0.1%
₹50 lakhs to ₹1 crore: 0.2%

Digital Payments
Digital payments have revolutionized the unorganized sector, with over 90% of vendors now using digital transactions. This shift has led to increased tax collection as all transactions are recorded. The government should:
Clarify intentions to integrate these vendors into the mainstream economy.
Implement voluntary declaration of digital gross receipts, certified by banks, to build trust and ensure minimal tax rates.

Agricultural Income
Agricultural income remains largely untaxed due to its complexity. A proposed distinction between fertile and unfertile land aims to address this:
*Fertile Land: * Up to 5 acres exempt; above 5 acres, ₹2000 per acre.
*Unfertile Land: * Up to 10 acres exempt; above 10 acres, ₹500 per acre if productive.

Tax on Politicians
A bold proposal suggests verifying politicians’ declared assets and income tax filings to ensure transparency and accountability. This move could bring significant tax revenue and build public trust.

Recommendations for Various Sectors
Salaried Class
The salaried class consistently contributes through TDS and deserves more sops. Recommendations include:
*Tax Slabs: *
5% for ₹7-10 lakhs
10% for ₹10-25 lakhs
20% for above ₹25 lakhs
*Depreciation: * Allow depreciation for salaried class to boost asset purchases.
*Investment Rebate: * Increase to ₹10 lakhs.
*Professional Tax: * Remove this tax on salaries.
*Flexi/Other Salary Components: * Allow adjustments for professional expenses.

Business Sector
Traders and Manufacturers
*Small Business: *
Turnover limit: ₹5 crore.
GST: 1% for manufacturers and traders; 5% for consultants.
Income Tax: 5% for digital turnover; 7% for cash turnover.
*Medium Business:
Turnover limit: ₹10 crore.
GST: 5%, 10%, 15% categories.
Income Tax: 5%, 10%, 20% categories.
*Large Business: *
GST: 5%, 10%, 15% categories.
Income Tax: 5%, 10%, 25% categories.

Agricultural Produce Tax
A simplified tax proposal based on landholding and productivity aims to ensure fair taxation without burdening small farmers.

Sops for Exporters
Reviving benefits for exporters through STPI, EHTPI, EOU, and SEZ registrations can boost foreign exchange earnings. Recommendations include import duty exemptions, job work exports under LUT, and incentives for capital goods import.

MSME and Tender Participation
Exclusive MSME participation in tenders, removal of tender application fees, and advance payments with CGTMSE guarantees are crucial for MSME growth. Transparent eligibility criteria and streamlined processes are recommended.
Reducing Litigation and Enhancing Infrastructure
Proposals to reduce scrutiny time limits for GST and Income Tax to three years, automate assessments, and enhance digital infrastructure for tax filing are essential for ease of doing business.

Conclusion
Balancing the Budget is a herculean task, with every sector demanding more. However, with a clear vision and bold steps, Finance Minister Smt. Nirmala Sitharaman can ensure that the Budget 2024-25 not only meets the aspirations of various stakeholders but also propels India towards becoming the world’s leading economy. The proposals outlined here aim to simplify taxation, promote transparency, and encourage growth across all sectors, ultimately contributing to the nation’s development and prosperity.