Dhruv Chopra, Managing Partner, Dewan P.N. Chopra & Co.

 The upcoming Budget is expected to provide tax relief while balancing the government’s need to maintain revenue. Taxpayers are hoping for an enhanced rebate for lower-income individuals and an increase in the basic exemption limit under both tax regimes to help offset inflation. To help conserve taxpayers’ resources, the turnover limit for taxation on a presumptive basis under Sections 44AD (for businesses) and 44ADA (for professionals) should be increased.

 Homebuyers may benefit from higher interest deduction limits on housing loans under Section 24(b). The deduction should be allowed for the full interest paid, at least for one house, or the current limit of Rs. 2 lakh should be increased to Rs. 3 lakh.

 Faceless assessments and appeals are highly appreciated. However, there is a significant backlog in the completion of faceless appeal disposals, which needs to be expedited in a time-bound manner. The TDS process for non-resident property sellers, which is currently cumbersome, is also expected to be simplified.

 Capital Gains Tax
A key expectation is that the exemption limit for LTCG on equities, currently capped at ₹1.25 lakh, may be increased to ₹2 lakh or higher, allowing investors to retain more of their returns. The new grandfathering rule in capital gains, which allows indexation benefits to resident individuals/HUF on the sale of residential property, needs to be rationalized. It should also be extended to other categories of assessments, such as non-residents, corporates, and other types of assets.

 There is growing anticipation for a review of Sections 54 and 54F, which provide exemptions for reinvestment of capital gains in residential properties, potentially expanding eligibility and increasing the ceiling for investment. To address the significant housing shortage in the country, the restriction on investing the sale proceeds in acquiring two residential houses should be removed, and the scope should be broadened to exempt capital gains tax if the sale proceeds are invested in creating housing stock, without any limitation on the number of units for individuals and HUF. Additionally, for claiming deductions under Section 54, the minimum holding period of the new asset should be reduced from 3 years to 2 years, in line with the minimum period for an asset to be treated as a long-term capital asset under Section 2(42A).

 Currently, exemptions under Sections 54 and 54F are limited to residential properties. These should be extended to business properties, as selling and reinvesting in business assets aims to support business growth, not generate capital gains. Expanding these exemptions would boost economic activity.

 Additionally, the threshold limit of Rs. 50 lakh under Section 54EC should be substantially enhanced to Rs. 2 crore, considering the limit was fixed in 2007. These funds are used for infrastructure development and contribute to societal welfare. These changes, along with a possible reduction in Short-Term Capital Gains (STCG) tax, could create a more investor-friendly environment, encouraging both retail and foreign investments and making India’s tax regime more competitive on the global stage.

Niranjan Govindekar, Partner, Corporate Tax, Tax & Regulatory Services, BDO India

 Budget 2024 had made big changes to the capital gains tax framework, offering both challenges and benefits for investors. Some provisions need a relook. For instance, to streamline the capital gains tax structure by aligning tax rates/ period of holding across various sub-asset classes, for instance, treating international equities the same as domestic equities, debt funds the same as gold funds, and gold funds the same as gold ETFs.The hike in short-term rates from 15% to 20% and in long-term rates from 10% to 12.5% has raised investor tax liabilities significantly. Since now the LTCG tax on securities is on par with other assets, the Securities Transaction Tax (STT) should be abolished.

Budget 2024 unexpectedly removed the indexation benefit for all long-term investments in debt funds. It is expected that all investments in debt funds made up to 31 March 2023, would qualify for the indexation benefit as per earlier provisions.
Tax implications on the buyback of shares – under the amended provisions, the entire consideration received is treated as dividends and taxed in the hands of the shareholders. It is recommended that the government amend the law to allow the cost of the acquisition of shares as a reduction and tax only the net amount as a dividend.

Sanjay Choudhari, Chairman, SBL Energy

“The industrial explosives sector is a cornerstone for India’s mining and infrastructure ambitions. As we look to the Union Budget 2025, we hope for significant investments in large-scale infrastructure projects, especially in sectors like railways, highways, and mining, which directly drive demand for industrial explosives.

The rising cost of raw materials, particularly ammonium nitrate, remains a pressing challenge. Rationalizing import duties or introducing tax incentives on key inputs would provide much-needed relief and enhance competitiveness.

In line with India’s sustainability agenda, the government should encourage innovation in eco-friendly explosives technologies through targeted R&D incentives. This will enable the sector to align with environmental goals while maintaining operational efficiency.

Reforms aimed at simplifying regulatory frameworks, particularly around licensing and safety compliance, will foster a more conducive business environment. With the right support, the industrial explosives industry is well-positioned to accelerate the country’s industrial and infrastructure growth, contributing significantly to the vision of a self-reliant India.”

Mr. Sahil Agarwal, CEO, Nimbus Group

The upcoming budget holds significant importance as it will be the first full-year budget of the Modi 3.0 government. We anticipate major announcements aimed at benefiting the real estate and infrastructure sectors, which are critical growth engines for the economy and support numerous allied industries.

One key area of focus should be the rationalization of taxes and duties levied on homebuyers, which in many states exceed 12% of a property’s value. In the previous budget, the finance minister urged state governments to address this issue, but significant progress has yet to be made. We hope this budget includes provisions to streamline these charges and provide much-needed relief to homebuyers. Additionally, we urge the government to revisit the long-term capital gains (LTCG) tax on real estate and consider providing relief in this area.

Steps toward GST reforms for the real estate sector are also necessary to make it a more attractive investment option. Furthermore, increasing the tax deduction limit under Section 24(b) for home loan interest, currently capped at ₹2 lakh per annum, to at least ₹5 lakh would provide substantial financial relief. This is particularly relevant for homebuyers in metropolitan cities, where high property prices necessitate large home loans. Such a move could boost demand and promote homeownership.

Introducing industry status for the real estate sector is another long-pending demand. This would enable developers to access capital at more competitive rates, making housing more affordable for buyers.

The government should also consider increasing budgetary allocations for infrastructure development, including metro networks, multimodal corridors, and last-mile connectivity projects. These investments would not only improve urban mobility but also stimulate the growth of commercial real estate in metro cities and their peripheral areas, fostering economic activity and attracting investment.

Overall, a balanced approach in the budget—rationalizing taxes, incentivizing homebuyers, and strengthening infrastructure—would play a crucial role in driving growth in the real estate and infrastructure sectors while contributing to broader economic progress.

Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd

“As we approach the upcoming budget, the real estate sector is optimistic about reforms that can act as growth catalysts and enhance operational efficiency. Revising the current tax exemption limit on housing loans to ₹5 lakhs, in line with rising property prices and construction costs, could provide significant relief to homebuyers. This step would directly support millions of aspiring homeowners and boost demand across the sector.

Equally transformative would be granting industry status to real estate, a move capable of invigorating over 200 allied sectors. Such recognition would foster job creation, enable skill development, and amplify economic activity, further solidifying the sector’s position as a cornerstone of India’s economy.

The real estate industry is poised to play a defining role in India’s journey toward ‘Viksit Bharat 2047.’ Strategic reforms, such as adjustments to GST input tax credit regulations, could reduce developers’ tax burdens, potentially stabilizing property prices and making housing more accessible. Additionally, introducing a ₹5 lakh subsidy for housing loans up to ₹1 crore would offer crucial financial support to urban and semi-urban homebuyers.

Broadening the definition of affordable housing to include properties priced up to ₹1 crore would align with evolving market dynamics and strengthen the government’s vision of ‘housing-for-all.’ These reforms, if implemented, could unlock tremendous potential, propelling the sector toward sustainable growth while contributing significantly to the nation’s development goals.”

Veer Singh, CEO, Lord’s Automative Pvt. Ltd

“The transition to green mobility is likely to be further expedited for India by the 2025 budget, setting a target to achieve 30 percent penetration of electric vehicles in the total automobile sales by 2030. Such penetration would certainly be possible in the country as India is more price-sensitive compared to other places.

More efforts need to be made in building a robust battery infrastructure, such as charging stations and battery recycling facilities, to boost consumer confidence. The budget should also include state-level incentives such as remission of registration fees for two-wheelers and three-wheelers in addition to subsidies to make EVs more widely available.

This would also ensure low-cost funding options through PSU banks and NBFCs with attractive interest rates, making it easy for both personal and commercial buyers to switch to electric vehicles. Equally, all logistical challenges and transportation costs must be addressed to cater to the diverse and sensitive customer base in terms of price.

The budget will support the rapidly growing EV industry by being standardised rather than being subjected to monopolistic activities. There might be a good base for sustainable mobility with the budget by advocating local manufacturing, self-reliance in the EV supply chain, and measures to establish India as a global hub for EV manufacturing.”

Mr. Mukul Bhatia, Managing Director – Head of Corporate Solutions Group, Lockton India

“The Union Budget 2025 offers a significant opportunity to accelerate the adoption of health insurance and enhance financial security across India. By introducing additional sops and tax incentives for individuals and corporate entities, the budget can boost health insurance penetration, aligning with the national vision of achieving universal insurance coverage by 2047. This would ensure greater financial protection for all.

Targeted incentives for corporate entities to provide enhanced employee benefits, such as comprehensive health insurance plans, can further strengthen the country’s economic resilience. Additionally, with the increasing frequency of natural disasters, promoting disaster resilience through incentives for catastrophe insurance products can facilitate timely recovery and reduce financial losses, particularly in high-risk regions. Our vision at Lockton India, is to provide innovative insurance solutions and believe that progressive reforms in this budget can enable the insurance sector to play a crucial role in creating a secure and inclusive future.”

Jaikaran Chandock, Director, Balu Forge Industries Ltd

”Defence will be one of the key focus areas for the upcoming Union Budget 2025, as the government intensifies its efforts to achieve self-reliance in design, development and manufacturing of defence equipment. The budget should propose an increase in the capital outlay for the defence sector to bolster capacity and capability, driving progress towards achieving self-reliance and attaining the defence exports target of ₹50,000 crore by 2029. With a dynamic defence manufacturing sector, India can boost indigenisation as well as domestic procurement of defence products and can become a global hub for sourcing advanced defence equipment. Therefore, the budget needs to propose measures and schemes that encourage technology transfer, public-private partnerships, R&D and collaboration with global players and Original Equipment Manufacturers (OEMs). A strong defence manufacturing ecosystem will help the sector unlock emerging opportunities.”

Praveen Kumar Bhandari, Chief Financial Officer, Hi-Tech Radiators Pvt Ltd

”We urge the government to prioritize investments in infrastructure development in the upcoming Budget 2025 as it could play a pivotal role in creating world-class infrastructure and positioning India as a global manufacturing hub. The government should also look at rationalising the tax structure while reducing the compliance burden on the taxpayer. The government’s move to levy higher GST and additional cess on certain products to raise more funds may not be a good idea, and it may promote tax evasions while encouraging the unorganised sector to supply counterfeit products to take advantage of the situation. We would also like to draw the government’s attention towards the tax compliance burden; be it direct or indirect taxation, its burden has been increasing on the taxpayers. Additionally, the government also looks at providing some tax incentives to exporters by reintroducing Sec 80 HHC of the income tax, as it will also help the country in offsetting the impact of the ever-increasing trade deficit driven by rising crude oil import bills. The interest equalisation scheme should also be made more liberal with no limit on the subvention of the interest for available pre- and post-packing credit. Besides this, the government should also look at rationalising personal income tax rates, particularly ‘surcharges and cess,’ which are always temporary in nature and are levied for a very specific purpose. Faceless assessment and appeal schemes under income tax should be made optional, as they have slowed down the disposal rate with heaps of high-pitch assessment/appeal orders.”

Praveen Kumar Bhandari, Chief Financial Officer, Hi-Tech Radiators Pvt Ltd

”We urge the government to prioritize investments in infrastructure development in the upcoming Budget 2025 as it could play a pivotal role in creating world-class infrastructure and positioning India as a global manufacturing hub. The government should also look at rationalising the tax structure while reducing the compliance burden on the taxpayer. The government’s move to levy higher GST and additional cess on certain products to raise more funds may not be a good idea, and it may promote tax evasions while encouraging the unorganised sector to supply counterfeit products to take advantage of the situation. We would also like to draw the government’s attention towards the tax compliance burden; be it direct or indirect taxation, its burden has been increasing on the taxpayers. Additionally, the government also looks at providing some tax incentives to exporters by reintroducing Sec 80 HHC of the income tax, as it will also help the country in offsetting the impact of the ever-increasing trade deficit driven by rising crude oil import bills. The interest equalisation scheme should also be made more liberal with no limit on the subvention of the interest for available pre- and post-packing credit. Besides this, the government should also look at rationalising personal income tax rates, particularly ‘surcharges and cess,’ which are always temporary in nature and are levied for a very specific purpose. Faceless assessment and appeal schemes under income tax should be made optional, as they have slowed down the disposal rate with heaps of high-pitch assessment/appeal orders.”

Jaikaran Chandock, Director, Balu Forge Industries Ltd

”Defence will be one of the key focus areas for the upcoming Union Budget 2025, as the government intensifies its efforts to achieve self-reliance in design, development and manufacturing of defence equipment. The budget should propose an increase in the capital outlay for the defence sector to bolster capacity and capability, driving progress towards achieving self-reliance and attaining the defence exports target of ₹50,000 crore by 2029. With a dynamic defence manufacturing sector, India can boost indigenisation as well as domestic procurement of defence products and can become a global hub for sourcing advanced defence equipment. Therefore, the budget needs to propose measures and schemes that encourage technology transfer, public-private partnerships, R&D and collaboration with global players and Original Equipment Manufacturers (OEMs). A strong defence manufacturing ecosystem will help the sector unlock emerging opportunities.”

Mr. Akash Khurana, President and CEO, Krisumi Corporation

As the Union Budget for 2025 approaches, the government, with its view to push growth, is anticipated to introduce a slew of reforms which may boost economic activity and bring efficiency to different sectors, including real estate.

The real estate sector, being one of the largest contributors to the GDP, could serve as a catalyst in augmenting growth. Since the tax deduction on housing loans has remained stagnant at ₹2 lakh per annum, it is imperative for the government to increase the threshold to ₹5 lakh. This will propel the demand for housing further.

We also anticipate the government to continue its thrust on infrastructure development, as it has a multiplier impact on the economy. With the government’s focus on sustainable development, some kind of incentive for green and eco-friendly housing could boost the supply of sustainable units.

Mr. Prashant Mishra founder & CEO at Agnam Advisors

As we look ahead to the 2025 Union Budget, there is a great opportunity for the government to further strengthen India’s economic growth. To drive private investments, it’s important to simplify compliance processes and offer targeted incentives, particularly in sectors that help build stronger financial markets and promote innovation. These steps can inspire greater investor confidence and contribute to a more robust and inclusive economy. The government’s goal of reducing the fiscal deficit to 4.9% of GDP is a responsible and commendable approach to ensuring long-term economic stability. At the same time, it is crucial to maintain focus on investments in infrastructure, education, and healthcare to continue supporting growth and inclusive development. By balancing fiscal discipline with policies that encourage investment, the 2025 Budget can provide a good foundation for sustainable growth. By doing this, it is sure to give the investors the power, promote innovation, and sustain India’s position as an economic leader.