When Tax evasion is 'national sport' :::: Nirmala Sitharaman's Budget 2025 is expected to introduce tax reliefs that encourage female-led businesses

A few decades back, legendary Nani Palkhivala had commented that Tax Evasion has been a national sport of India. 

The season of Budget making at the national level comes annually. People are often forced to ponder : 

"Don't Tax him, 

And don't tax me. 

But tax the man behind the tree"

With the rise of women entrepreneurs and their growing contribution to the economy, Nirmala Sitharaman's Budget 2025 is expected to introduce tax reliefs that encourage female-led businesses. 

It is a matter of fact that over the decades now 'more women' have entered into the workforce and managing personal finances, this budget is expected to bring forth measures that foster greater financial independence and security.

Simplified tax compliance procedures, along with incentives for women to invest in startups, could be a key feature.

Women-owned small and medium enterprises (SMEs) may benefit from lower tax rates, easier access to financial resources, and a more conducive environment for business growth. These changes could significantly lower barriers for women entrepreneurs to thrive.

Ridhima Kansal, Director of Rosemoore, believes that with the Union Budget 2025 approaching, women taxpayers are hopeful for measures that reduce their tax burden and enhance financial empowerment.

Prime Minister Narendra Modi is generally known for facing the challenges head on. A reduced number of seats for him (240 for the BJP) in 2024 Lok Sabha elections did not dampen his spirit. 

He has taken corrective steps politically and won to crucial polls - Maharashtra and Haryana - and thus could make it clear that he cannot be pushed out from the polity so easily. In fact politically he is back with a bang. 

But on the economic front, there are big challenges and the Budget 2025-26 will have to offer some magic solutions. These are easier said than done. 

When it comes to  Budget making, maybe we can say that the political values have got so debased that it would require a lot of courage to do the 'necessary and right' things.  

Some BJP leaders say there is a national impatience to achieve enhanced development. Hence, it may not be erroneous to state that the fiscal statement should actually reflect the new mood of optimism. 

The Central government also holds a key responsibility to display the national self-confidence for a country where people are either selfish or are inherently skeptical.

These could lead us to talk about the second/third generation reforms. 

To start with,  the insurance sector is eyeing 'reforms' aimed at improving penetration of health insurance and making it more affordable. 

Industry leaders are pushing for reductions in GST on health insurance premiums, increased tax exemptions, and the establishment of a dedicated health regulator to combat rising medical costs.   

But there maybe situations which are pushing 'Income tax relief'. 

There is also demand for tax holidays and GST exemption by a host of industries.

There is yet another important facet that should get due attention. It's called the small and medium enterprises (SMEs). The economic growth of India is also inextricably linked to the small scale sector.  

Hence experts say "providing credit" to the small enterprises and the economically weaker sections of the society will be a vital feature. 

A stable and permanent refinance window for the sector shall significantly boost lender/investor confidence. Initiatives towards deepening and widening of the capital markets and facilitation of overseas funding shall support funding diversification. 

ends