As the Union Budget 2025 approaches, India’s focus is on aligning fiscal strategies with its vision for economic growth amidst global uncertainties. The banking, financial services, and other key sectors have highlighted critical expectations for policy reforms to foster ease of doing business and bolster economic development.

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• Comprehensive review of the Income-tax Act, 1961, is underway; some industry demands may be addressed in the upcoming budget.
• Reduction in tax rates for foreign bank branches is sought to ensure parity with Indian banks and enhance competitiveness.
• Abolition of Securities Transaction Tax (STT) is expected, as long-term and short-term capital gains on equities are already taxed.
• Non-Banking Financial Companies (NBFCs) demand immediate notification for thin capitalization amendments and TDS exemption on interest payments.
• Expansion of tax holidays in GIFT-IFSC to 15–20 years for insurance companies is suggested to support long-term growth.
• Tax incentives for green and sustainable finance in IFSC, such as income exemptions on green bonds, are proposed to boost ESG efforts.
• Further relaxation in conditions for tax relief to SWFs/Pension Funds and extension beyond March 2025 is recommended.
• Reinstating TDS exemption on interest payments for listed debentures to simplify cash flow and compliance is anticipated.
• Timely processing of appeal effects and issuance of tax refunds is sought to improve taxpayer confidence.
• Measures like digitization, streamlined compliance processes, and single-window clearances have improved ease of doing business and are expected to continue in alignment with the vision of a Viksit Bharat.