New Delhi, More tax benefits for health insurance under the new tax regime, relaxation in payment norms for MSMEs and incentives for the agri-tech sector are among stakeholders' expectations from the Modi government's first Budget 3.0.
Finance Minister Nirmala Sitharaman is scheduled to present the full budget for fiscal year 2024-25 on July 23, which will be the first major policy document of the new government.
Anup Rau, Managing Director and CEO of Future Generali India Insurance Company, said the deduction limit for health insurance premiums under Section 80D of the Income Tax Act has remained unchanged for the last nine years to although there has been a significant increase. in health care costs across the country."It would be better if the health insurance cap was linked to inflation and automatically reviewed every year or every two years. In addition, the benefits should be extended to the new tax regime, since increasing health insurance penetration is essential. That is why we hope that some increase in the deduction limit for health insurance premiums will be announced in the next budget," Rau said.
Tapan Singhel, managing director and chief executive officer of Bajaj Allianz General Insurance, said reforms such as offering health insurance to employees at negotiated rates, reducing GST on health insurance premiums and offering tax benefits such as higher Section 80D exemption limits They would make health insurance more affordable and accessible. especially for the "half-missing" segment of our population.
"Also, for senior citizens, removing the cap on deductions for health insurance premiums would significantly ease their financial burden," Singhel said. The Finance Minister is likely to set out the government's economic agenda in the budget.
On Sitharaman's budget expectations, D S Negi, executive director of the Rajiv Gandhi Cancer Institute and Research Center (RGCIRC), said focusing on reforming cancer care in India is crucial and it is important to prioritize funding for treatments. advanced such as immunotherapy and personalized medicine. ensure that more patients can access these cutting-edge therapies.
"Extending Ayushman Bharat to people above 70 years of age will be very beneficial for senior citizens. However, the current coverage limit of Rs 5 lakh may not be enough for critical diseases like cancer, where treatment costs may range between 15 and 20 lakh rupees. “Therefore, it is essential to consider increasing the coverage limit for critical illnesses like cancer to ensure adequate financial support to cancer patients,” Negi added.
The budget is likely to include measures to accelerate reforms to make India a $5 trillion economy in the near future and turn the country into a 'Viksit Bharat' by 2047.
Ahead of the budget, Medical Technology Association of India (MTaI) president Pavan Choudary said customs duties and taxes levied on medical devices in India are one of the highest in the world, which "On the other hand, countries such as Singapore, Hong Kong, Italy and Norway do not impose such duties. Australia and Japan impose only a minimum tax of 0.5 percent, while in the United States it is 2 percent and in China 3 percent.
"This stark contrast creates risk of illegal imports of medical devices into India that are not backed by legal and service guarantees. Furthermore, such trade would undermine the Indian government's tariff revenues," he said.
Vivek Jalan, partner at Tax Connect Advisory Services LLP, said that based on the recommendations of micro, small and medium enterprises (MSMEs), Section 43B (h) of the Income Tax Act was introduced from 24 and 25 of the year. However, the exclusion of accounts payable under section 43B(h) of the Act has been harmonized with the MSME Act, which requires payment to be made to an SME within a maximum period of 45 days." This is difficult in today's trade, where a 60 to 90 day credit period is the norm.
"In this budget, this provision is expected to be relaxed or amended to align with the CGST Act regarding disallowance when payment to SMEs is not made within 180 days. Therefore, in case a taxpayer fails pay to an SME within 180 days, then the expense can be added to your income," he said.
Ahead of the budget, Saurabh Rai, CEO of Arahas, has expressed high expectations for substantial investments in sustainability and geospatial technology "We anticipate significant allocations for renewable energy projects and incentives for companies adopting green technologies," he said.
Additionally, Rai said driving innovations in agricultural technology, offering tax incentives to technology companies and investing in human capital development is imperative to drive sustainable growth.
Sanjay Kumar, Founder and CEO of Geospatial World, said that to fully harness the power of digital twin technology, it is crucial to allocate specific funds for it in the Union Budget. "This allocation will facilitate widespread adoption of digital twins, driving gains of efficiency, cost savings and better decision making in infrastructure projects. By investing in this technology, India can achieve significant long-term benefits such as better asset management, reduced downtime and greater resilience to challenges. environmental," Kumar said.
Sitharaman took over the responsibility of the Finance portfolio in the second term of the Modi government after the 2019 general elections, becoming the first full-time woman Finance Minister in independent India.
Finance Minister Nirmala Sitharaman is scheduled to present the full budget for fiscal year 2024-25 on July 23, which will be the first major policy document of the new government.
Anup Rau, Managing Director and CEO of Future Generali India Insurance Company, said the deduction limit for health insurance premiums under Section 80D of the Income Tax Act has remained unchanged for the last nine years to although there has been a significant increase. in health care costs across the country."It would be better if the health insurance cap was linked to inflation and automatically reviewed every year or every two years. In addition, the benefits should be extended to the new tax regime, since increasing health insurance penetration is essential. That is why we hope that some increase in the deduction limit for health insurance premiums will be announced in the next budget," Rau said.
Tapan Singhel, managing director and chief executive officer of Bajaj Allianz General Insurance, said reforms such as offering health insurance to employees at negotiated rates, reducing GST on health insurance premiums and offering tax benefits such as higher Section 80D exemption limits They would make health insurance more affordable and accessible. especially for the "half-missing" segment of our population.
"Also, for senior citizens, removing the cap on deductions for health insurance premiums would significantly ease their financial burden," Singhel said. The Finance Minister is likely to set out the government's economic agenda in the budget.
On Sitharaman's budget expectations, D S Negi, executive director of the Rajiv Gandhi Cancer Institute and Research Center (RGCIRC), said focusing on reforming cancer care in India is crucial and it is important to prioritize funding for treatments. advanced such as immunotherapy and personalized medicine. ensure that more patients can access these cutting-edge therapies.
"Extending Ayushman Bharat to people above 70 years of age will be very beneficial for senior citizens. However, the current coverage limit of Rs 5 lakh may not be enough for critical diseases like cancer, where treatment costs may range between 15 and 20 lakh rupees. “Therefore, it is essential to consider increasing the coverage limit for critical illnesses like cancer to ensure adequate financial support to cancer patients,” Negi added.
The budget is likely to include measures to accelerate reforms to make India a $5 trillion economy in the near future and turn the country into a 'Viksit Bharat' by 2047.
Ahead of the budget, Medical Technology Association of India (MTaI) president Pavan Choudary said customs duties and taxes levied on medical devices in India are one of the highest in the world, which "On the other hand, countries such as Singapore, Hong Kong, Italy and Norway do not impose such duties. Australia and Japan impose only a minimum tax of 0.5 percent, while in the United States it is 2 percent and in China 3 percent.
"This stark contrast creates risk of illegal imports of medical devices into India that are not backed by legal and service guarantees. Furthermore, such trade would undermine the Indian government's tariff revenues," he said.
Vivek Jalan, partner at Tax Connect Advisory Services LLP, said that based on the recommendations of micro, small and medium enterprises (MSMEs), Section 43B (h) of the Income Tax Act was introduced from 24 and 25 of the year. However, the exclusion of accounts payable under section 43B(h) of the Act has been harmonized with the MSME Act, which requires payment to be made to an SME within a maximum period of 45 days." This is difficult in today's trade, where a 60 to 90 day credit period is the norm.
"In this budget, this provision is expected to be relaxed or amended to align with the CGST Act regarding disallowance when payment to SMEs is not made within 180 days. Therefore, in case a taxpayer fails pay to an SME within 180 days, then the expense can be added to your income," he said.
Ahead of the budget, Saurabh Rai, CEO of Arahas, has expressed high expectations for substantial investments in sustainability and geospatial technology "We anticipate significant allocations for renewable energy projects and incentives for companies adopting green technologies," he said.
Additionally, Rai said driving innovations in agricultural technology, offering tax incentives to technology companies and investing in human capital development is imperative to drive sustainable growth.
Sanjay Kumar, Founder and CEO of Geospatial World, said that to fully harness the power of digital twin technology, it is crucial to allocate specific funds for it in the Union Budget. "This allocation will facilitate widespread adoption of digital twins, driving gains of efficiency, cost savings and better decision making in infrastructure projects. By investing in this technology, India can achieve significant long-term benefits such as better asset management, reduced downtime and greater resilience to challenges. environmental," Kumar said.
Sitharaman took over the responsibility of the Finance portfolio in the second term of the Modi government after the 2019 general elections, becoming the first full-time woman Finance Minister in independent India.
