AI and Gig Economy: Government’s New Priority
Kolkata, 24th July 2024: The Indian Chamber of Commerce (ICC) recently conducted an insightful session to analyze the Union Budget 2024-25. The session focused on the impact of the budget on amendments in direct and indirect taxes and provided industry perspectives on The Finance (No. 2) Bill, 2024.
Expert Opinions on Budget Implications
AI and Gig Economy’s Potential
Mr. Aditya Hans, Partner at Dhruva Advisors LLP, emphasized the government’s prioritization of Artificial Intelligence (AI) and the gig economy. “AI and the gig economy, if not managed properly, could become job takers. However, if addressed correctly, they have the potential to revolutionize the economy,” he remarked. Hans highlighted the budget’s focus on agriculture, employment, skilled development, and social services, noting an allocation of Rs 13.6 lakh crore for capital expenditure through Central and State Governments. The Finance Bill, he added, focused on rate rationalization and revamping of capital gains.
Clarification on Share Buyback Provisions
Mr. Paras Sheth, Principal at Dhruva Advisors LLP, provided clarity on the new provisions related to share buybacks. “Any amount paid out as proceeds to the shareholder will be calculated as a dividend. The amount paid out for acquiring those shares will be considered a loss and can be settled later,” he explained.
Changes in Tax Regime
Mr. Vishal Jain, Principal at Dhruva Advisors LLP, discussed the changes in the tax regime. He highlighted the increase in standard deduction and the revision of tax slabs under the new regime. “The Government is pushing towards the new tax regime and promoting the new pension system (NPS),” Jain stated.
Boost for Domestic Manufacturing
Mr. Ruturaj Bhide, Principal at Dhruva Advisors LLP, noted the rationalization of customs duty as a significant move. “This will provide impetus to domestic manufacturing and green energy,” he said.
Expectations from the New Tax Commission
Mr. Pallav Gupta, Chairman of the Expert Committee on Taxation at ICC, expressed high expectations from the new Tax Commission. “There is much anticipation regarding the simplification of Income Tax impacts,” he commented.
Conclusion
The ICC’s Union Budget 2024-25 Analysis Session offered comprehensive insights into the government’s budget priorities and their implications for various sectors. The focus on AI, the gig economy, and tax reforms underscores the government’s commitment to fostering economic growth and innovation.
