Union Budget 2024 - IT Channels Partners Voicing their Expectations

Union Budget 2024 is around the corner. There are a lot of expectations from the re-elected government. The IT sector is the crux of the Indian economy. A significant part of this sector is the channel partners which work relentlessly to provide their services.

Recently, DQ Channels interacted with the partners' association to understand their expectations from the Union Budget 2024. Federation of All India IT Association (FAIITA), Progressive Channels Association of Information Technology (PCAIT), and Computer Association of Nashik (CAN) shared their respective views and expectations from this budget.

They talked about taxation in a united voice and also discussed some ease of doing the business policies that should be introduced.

On the upcoming Union Budget 2024, Devesh Rastogi, President, of FAIITA, shared his perspective -

The government should introduce measures to support businesses and individuals, including the simplification of GST and the provision to file revised returns under the GST system. Additionally, benefits under the ZED scheme should be extended, and a reduction in fees for CGTMS loans should be introduced. To further support small and medium enterprises (MSMEs) and the Make in India (MII) initiative, the reservation in tenders should be increased from the current 25 percent. Middle-class taxpayers and partnership MSMEs should also receive relief in income tax.

Alok Gupta, President, PCAIT voiced his expectations from the budget -

There are a lot of expectations from the partner's fraternity. expecting 12-15 lacs cover for personal income tax increased from the current 7.5 lacs. The biggest challenge in India for businesses, whether it is IT or any other sector, is double taxation. We pay our income tax and then we need to pay GST as well, it should be merged into a single taxation window. For instance, If we are paying GST, then there should be no need to pay income tax separately. Or GST rates should be reduced to 5% or 7%. Likewise, a capping of rupees 5 crores can be introduced, where a businessperson doesn't need to pay GST on up to 5 crores of profit. Taxes should be levied on the high turnover or profits which will be beneficial for the MSMEs or small traders. To boost the economy government should focus on aiding the businesses. Single-window taxation through GST is highly beneficial for the whole financial ecosystem.

On this budget, 2024, Rajesh P. Bhavsar, President, of the Computer Association of Nashik stated his expectation -

Businesses mainly face issues due to taxation. We pay a lot through taxes, for instance, GST, income tax, and corporate tax, if we combine all these taxes then approximately we pay 30-40% of our income in taxes. Whereas, tax invaders are totally ignored by the government. The honest taxpayers bear the burden of high taxation. A small businessperson collapses while paying a high rate of taxes. Small-scale traders should get credits and loans easily which can enhance the ease of doing the business. Up to 20 lacs, they should get collateral-free loans.

Conclusion -

To sum up, the IT Channel Partner association has voiced their opinion about what changes should be introduced by the government. They shared that Union Budget should reinvent the policies to aid MSMEs, Start-ups, ISVs, Traders, and OEMs in doing their business operations smoothly. Which in turn boosts the economy.

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