Budget 2025 Expectations: Sitharaman May Propose New Income Tax Bill; Potential AGR Relief For Telcos

Ahead of the Union Budget, the hospitality industry wants the government to support growth through targeted measures, said Rajesh Magow, co-founder and Group CEO of MakeMyTrip.

Key demands include granting long-awaited industry status to attract investments, allowing GST credit for hotel construction, and rationalizing GST rates to lower accommodation costs. These steps could boost domestic tourism and enhance inbound travel. Additionally, the sector hopes for resource allocation to bolster the "Incredible India" campaign on an international scale.

Capital spending is likely to remain a cornerstone of the government's strategy, ICRA said, with a projected Rs 11-lakh-crore allocation for fiscal 2026, reflecting a 12-13% YoY increase, as per ICRA. Key highlights include:

• Infrastructure Focus: Roads, highways, and railways will likely see sustained investment.

• State-Level Support: Interest-free capex loans to states will continue, aimed at catalysing regional infrastructure growth.

• Private Investment Catalyst: Higher public capex is expected, supporting overall economic activity.

ITC Hotels Ltd., the hotel arm of ITC Ltd., will list before the budget day, according to people aware of the development.

ITC Hotels was demerged as a separate entity with effect from Jan. 1, 2025, and is supposed to list within 60 days. The record and ex-date for the demerger was Jan. 6, 2025.

On Jan. 6, through a special pre-open session, the hotel assets of ITC were demerged from the cigarette major. The demerged portion was valued at Rs 26 per share and continues to remain dormant along with ITC on nearly 60 indices including the benchmark NSE Nifty 50 and BSE Sensex 30.

Read full story here.

The government is considering tweaking the PM Internship scheme by widening the reach of the programme and easing eligibility criteria in the upcoming Union Budget, sources told NDTV Profit.

The internship scheme, which is currently in pilot mode, is likely to reach out to states and respective districts and may invite more companies to participate.

Subsequently, there could be modifications in the current eligibility criteria, including age and qualification. At present, youth aged 21-24 years would apply if they completed 10^th, 12th, ITI, Polytechnic, or diploma courses.

Read story here.

ICRA anticipates a balanced approach in budget 2025-26, prioritising fiscal consolidation while also pushing for infrastructure and manufacturing growth.

Read story here.