The Budget 2024 is presented today in the capital city, New Delhi. The 2024 Union Budget of India introduces several transformative measures aimed at fostering economic growth, enhancing social welfare, and streamlining tax regulations. The budget emphasizes employment, skill development, MSME support, and benefits for the middle class, ensuring an inclusive and resilient economic framework. Below, we delve into the key highlights of the budget 2024, categorized for clarity.
Changes as per New Tax Slabs in Budget 2024
- Rs.0 to Rs.3 lakh – NIL
- Rs.3 to Rs.7 lakh – 5%
- Rs.7 lakh to Rs.10 lakh – 10%
- Rs.10 lakh to Rs.12 lakh – 15%
- Rs.12 lakh to Rs.15 lakh – 20%
- More than Rs.15 lakh – 30%
Tax Reforms and Reliefs
Personal Taxation
- Standard Deduction Increase– The standard deduction under the new regime has been raised from ₹ 50,000 to ₹ 75,000.
- Family Pension Deduction– Deduction on family pensions has been increased from ₹ 15,000 to ₹ 25,000.
Corporate and Foreign Taxation
- Corporate Tax Reduction– The corporate tax rate for foreign companies has been reduced from 40% to 35%.
- Angel Tax Abolished– The angel tax has been abolished for all taxpayers at budget 2024.
- Foreign Assets Reporting– Non-reporting of foreign assets and incomes (including ESOPs and RSUs) up to ₹ 20 lakhs will not incur penalties. Movable assets up to ₹ 20 lakhs will be decriminalized, and the 2% equalization levy will be withdrawn.
Investment and Securities
- STT Increase– The Securities Transaction Tax (STT) on Futures has been increased to 0.02% and on Options to 0.1%.
- Tax on Buyback– Tax on buyback will now be borne by the recipients.
- Capital Gains Tax– Short-term gains on certain financial assets will attract 20% tax, while long-term capital gains will be taxed at 12.5%. The exemption limit for capital gains on certain financial assets has been increased from ₹ 1 lakh to ₹ 1.25 lakhs.
Simplification and Rationalization
- Income Tax Act Review– A comprehensive review of the Income Tax Act, 1961, will be conducted within six months to ensure tax certainty and simplification.
- Vivaad se Vishwaas 2024– This scheme aims to reduce litigation by appointing more officers to clear the backlog of appeals and increasing the monetary limits for appeals to ₹ 2 crores and ₹ 5 crores, respectively.
Customs and Duties
Customs Duty Reductions-
- Gold and silver- Reduced to 6%.
- Mobile phones, chargers, and PCBA- Reduced to 15%.
- Certain critical minerals- Fully exempt, with a reduction on two of them.
- Cancer-treating medicines- Fully exempt from customs duty.
- Oxygen-free copper used in electronics- Proposed removal of BCD, subject to conditions.
- Comprehensive Review- A detailed review of the customs duty rate structure will be undertaken over the next six months to address duty inversion and rationalize it.
Business and Investment Facilitation
- Jan Vishwas Bill 2.0 passed at Budget 2024– Aimed at enhancing ease of business.
- FDI and Overseas Investment Rules– Simplification of rules and regulations.
- e-Sharm Portal– Integration with other portals to improve labor data.
- Interest-Free Loans for Land Reforms– 50-year interest-free loans will be provided to promote land reforms.
Infrastructure and Development
- Infrastructure Investment– 3.4% of GDP will be invested in infrastructure over the next five years.
- PM Gram Sadak Yojana Phase 4– Launch to support 25,000 rural habitations.
- Transit-Oriented Development- Programs for 14 large cities will be implemented.
- Additional Debt Recovery Tribunals– More tribunals will be set up to facilitate debt recovery.
- Rental Housing– Dorm-type accommodation in PPP mode for industrial workers.
- Industrial Hubs– Sanctioning of 12 new industrial hubs.
Social Welfare and Rural Development
- Rural Development– Allocation of ₹ 2.66 lakh crore.
- Women-Led Development– ₹ 3 lakh crores allocated.
- PM Awas Yojana– Provision of 3 crore additional houses in rural and urban areas.
- Flood Management Assistance– Support for projects in Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim.
- PM Surya Ghar Muft Bijli Yojana– Roof-top solar panels to provide free electricity up to 300 units monthly for 1 crore households.
- Reduction in Stamp Duty– State Governments will moderate and reduce stamp duty for property purchases by women.
Employment and Skill Development
- Internship Opportunities– One crore youth will receive internship opportunities in 500 top companies over the next five years, with a monthly allowance of ₹ 5,000 and a one-time expense of ₹ 6,000.
- Employment-Linked Incentives
- First timers– One month’s wage for new workforce entrants.
- Manufacturing sector– Incentives for job creation in the first four years.
- Employer support– Reimbursement for EPFO contributions due to additional employment.
MSME Support
- Mudra Loans– Limit enhanced to ₹ 20 lakhs.
- Credit During Stress Periods– Provision of credit to avoid NPA classification while being a Special Mention Account (SMA).
- New Credit Assessment Model– Introduction of a new model for MSMEs.
- Credit Guarantee Scheme– A new scheme providing guarantees up to ₹ 100 crores and term loans for machinery without collateral.
Education and Research
- Education Loans– Financial support for loans up to ₹10 lakhs for higher education in domestic institutions, with e-vouchers for annual interest subvention of up to 3% for one lakh students.
- Climate-Resilient Crops– Release of 109 new climate-resilient crop varieties for farmers.
- Venture Capital Fund- ₹ 1,000 crore funds for space research development.
Conclusion
The Budget 2024 reflects a balanced approach to stimulating economic growth, ensuring social welfare, and simplifying tax regulations. This time, the budget’s main focus was infrastructure, MSME support, employment, and skill development. This truly shows how the government aims to build a resilient and inclusive economy. The 2024 budget’s emphasis on women’s development, rural advancement, and environmental sustainability further substantiates its commitment to India’s holistic progress.
