New Delhi : In an exclusive conversation with ETV Bharat, Rahul Garg, Chairman, National Council on Direct Taxes, ASSOCHAM (The Associated Chambers of Commerce and Industry of India) said the budget allocation in terms of attracting foreign investment in India along with the reduction of the foreign companies tax rate from 40 to 35 % and allowing the foreign cruises to operate here in India at moderate tax rate, are steps towards right direction which will not only open a path towards growth but would attract investments from domestic as well as foreign sources.
Union Finance Minister Nirmala Sitharaman presented the Budget 2024 in the Parliament on Tuesday. In her budget speech, Sitharaman announced to ease norms for foreign direct investment (FDI) and overseas investment.
She said, "The rules and regulations for Foreign Direct Investment and Overseas Investments will be simplified to facilitate foreign direct investments, nudge prioritization, and promote opportunities for using Indian Rupee as a currency for overseas investment".
She also reduced corporate tax on foreign companies from 40 to 35%.
Further, Rahul Garg said, "The budget has followed 10 years Govt agenda of growth. The 10 year govt agenda of growth is based on building character of the nation, building skill in the nation, finding the growth which is 'atmanirbharta' and that is very clear in this budget".
As far as tax is concerned, the tax rates has not increased except for the change in the capital gains. In respect of the tax rates for individuals, they gets a slight relief as under the new tax regime one could save up to Rs 17,500 in income tax annually following the changes announced in the Budget.
"Overall, the allocation in terms of social security, allocation in terms of infrastructure being continued as was promised in the interim budget and the allocation in terms of attracting foreign investment in India along with reduction of the foreign companies tax rate from 40 to 35 % and allowing the foreign cruises to operate here in India at moderate tax rate, are steps towards right direction which will not only open a path towards growth but would attract investments from domestic as well as foreign sources", added Garg.
Presenting the budget, Sitharaman has announced to change the income tax slabs effective FY 2024-25 under the new income tax regime as announced in Budget 2024. The standard deduction under the new income tax regime has also been hiked from the present Rs 50,000 to Rs 75,000. According to the Finance minister, the changes in the new income tax regime will help taxpayers save Rs 17,500.
Commenting on the the Govt's decision to exempt custom duties on critical minerals, the Assocham chairman said, "The work that has to be done by the country in terms of critical minerals is far too much but this is a small beginning which will ease out the availability of critical minerals. It will attract private sector in getting security in terms of critical minerals which is a great step towards progress".
Finance minister Nirmala Sitharaman on Tuesday announced to fully exempt 25 critical minerals from custom duties, and reduce basic custom duties (BCD) on two of them.
She said, “This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors".
These critical minerals include antimony, beryllium, bismuth, cobalt, copper, gallium, germanium, hafnium, indium, lithium, molybdenum, niobium, nickel, potash, rare earth elements, rhenium, strontium etc.
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