NEW DELHI: The pre-budget meetings with the finance ministry officials and industry representatives will begin by the third week of November as the ministry initiates the budget-making process, sources told TSS. An official from the department of economic affairs said meetings with economists, farmers, representatives of the MSME sector and others would start after November 20.
However, the exact dates of the meetings are yet to be announced.
The finance ministry has already begun preparations for the upcoming Union Budget, with secretaries, joint secretaries and additional secretaries gearing up for a series of inter-departmental meetings.
The joint secretary (Budget) has been engaged in talks with officials from the department of expenditure to finalise the revised estimates for the current financial year. An official said that these meetings would conclude by November 15.
Meanwhile, senior officials in the department of revenue have been inundated with tax-related representations from industry bodies.
The next Budget is expected to announce some changes in the way gains from the stock market are taxed, with the investor community demanding the removal of long-term capital gains tax (LTCG) if the government continues to levy securities transaction tax (STT). In the July 2024 Budget, the government increased LTCG on equities from 10% to 12.5%. It also raised the short-term capital gains tax from 15% to 20%. Since September 2024, equity markets have remained under pressure.
Assocham, in its representation to the finance ministry, has asked for a complete exemption from LTCG tax on equity investments held for two years or more, and a tax rate of 10% for those held for over one year but less than two years. It has called for incentives for ‘patient capital’ by either exempting gains from LTCG tax or providing a set-off against STT.