Kolkata, 3 February 2025: Indian Chamber of Commerce (ICC) conducted a Union Budget 2025-26 Analysis Session, to discuss and interpret the union budget’s impact on amendments in direct and indirect taxes and industry perspectives on The Finance (No. 2) Bill, 2025. The session witnessed valuable insights from Mr. Aditya Hans, Partner, Dhruva Advisors LLP; Mr. Pallav Gupta, Head-Taxation (Retired), ITC Limited & Chairman, ICC National Expert Committee on Taxation; Prof. Sahana Roy Chowdhury, Professor, Economics, IIM Kolkata; Mr. Vaibhav Jajoo, Associate Partner, Dhruva Advisors LLP; Mr. Basant Gadhyan, Principal, Dhruva Advisors LLP; and Mr. Vishal Jain, Principal, Dhruva Advisors LLP.

Mr Aditya Hans, Partner, Dhruva Advisors LLP, in his assessment of the budget stated that the overall focus of the budget has been more on MSMEs & Startups for boosting manufacturing and services. He also mentioned that the budget has given sharp focus on agriculture. According to him the budget delves into putting more money into the hands of the consumers in order to tide over the anticipated global slowdown. The budget, he felt, reflected the Government focus on simplified taxation, boosting investment, ensuring compliance and reducing friction.

Prof Sahana Roy Chowdhury, Professor & Area Chair, Economics, IMI Kolkata stated that the Budget was in tune with the economy survey presented the day before. The Budget, she felt, emphasised to boost urban demand through direct tax cut and enhancing disposable income. She also said that fiscal prudence was at the heart of the budget to accommodate the foregone revenue from direct and indirect taxes proposed in the budget. For managing fiscal deficit, she explained, that the budget tried to unlock the potential of private sector through structural reforms by incentivise in areas such as research and development.

Mr Vaibhav Jajoo, Associate Partner, Dhruva Advisors LLP remarked on the implications of time line to finalise provisional assessment; Voluntary revision of custom duties and the custom tariff rationalisation.

Mr Basant Gadhyan, Prinicipal, Dhruva Advisors LLP welcomed the move to exemption of long term capital gains arising to Sovereign Wealth Funds and Pension Funds. He also welcomed the boosting of entrepreneurial spirits etched in budget to promote startup ecosystem by extending the period of incorporation for a period of 5 years.

Mr Vishal Jain, Prinicipal, Dhruva Advisors LLP in his clarification of the tax implication touched upon time limit to file updated return; decriminalisation of TCS default; and rationalisation of TDS/TCS changes.

Mr Pallav Gupta, Chairman of the National Expert Committee on Taxation, ICC in his address mentioned that rationalisation of custom duties on life saving drugs and components of EVs are commendable. He hoped for a shorter and simpler version of the income tax laws.