The Institute of Chartered Accountants of India (ICAI) has expressed its expectations for the upcoming Union Budget to include measures that would rationalise taxation for startups and simplify compliance for professionals, reported news agency PTI.
With the budget for the fiscal year 2025-26 set to be unveiled by India’s finance minister Nirmala Sitharaman on 1 February 2025, the accounting community is said to be anticipating potential reforms.
This will mark Sitharaman’s eighth consecutive presentation of the Union Budget under the current government.
The ICAI has also voiced its eagerness for reforms that could bolster education and facilitate ease of doing business.
ICAI stated in a release: “We hope for measures that simplify compliance for professionals, rationalise taxation for startups, and incentivise ESG (Environmental, Social and Governance)-led initiatives through tax benefits. Aligning tax provisions with global benchmarks and supporting innovation will accelerate India’s journey to becoming a global economic leader.
“With greater budgetary support for education, particularly skill development and girl child education, we can further strengthen these efforts, fostering a generation that is both empowered and future ready.”
Taxpayers are reported to be hopeful that the finance minister will announce new income tax categories and introduce deductions and exemptions in the new tax regime.
The government is also expected to present the Direct Tax Code during this budget session, aiming to overhaul the 63-year-old Income Tax Act.
The objective is to simplify the legislation, making it more comprehensible for taxpayers.
Earlier in January 2025, the ICAI released the third volume of guidance based on non-compliances identified by the Quality Review Board (QRB) during audits.
This publication from the Auditing and Assurance Standards Board seeks to improve audit quality by addressing prevalent issues found across 151 case reviews.
