Union Budget 2024 Highlights

Union Budget 2024 Highlights: Key Income Taxand Finance Announcements

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Union Budget 2024 Highlights

Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-25 today. This budget is significant as it marks the first full-year budget of the newly re-elected government, and there are high expectations for measures to ease financial pressures on middle-class taxpayers.

Table of Contents

Union Budget 2024 Highlights : Key Tax Announcements:

New Income Tax slabs:

Comprehensive review of the Income Tax Act 1961.

New Tax Regime Slabs:

  • Up to Rs 3 lakh: No tax.
  • Rs 3-7 lakh: 5%.
  • Rs 7-10 lakh: 10%.
  • Rs 10-12 lakh: 15%.
  • Rs 15 lakh and above: 30%.

Standard deduction under the New Tax Regime increased from Rs 30,000 to Rs 75,000, saving Rs 17,500. Family pension deduction for pensioners increased from Rs 15,000 to Rs 25,000.

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Budget 2024 Announcements for STT, Short-term capital gains and LTCG: Capital Gains Taxation:

  • Simplified capital gains taxation: Short-term capital gains reduced to 20%, LTCG to 12.5% for some assets.
  • Unlisted bonds and debentures will attract capital gains tax.
  • Removal of indexation benefit on property sales.
  • STT on options increased to 0.1%, and on futures in securities to 0.02%.
  • TDS on e-commerce reduced to 0.1%.
  • Angel tax abolished for all investor classes.

Union Budget 2024 Highlights - Customs Duty Changes:

  • Basic customs duty on gold and silver reduced to 6%, and platinum to 6.4%.
  • Reduced customs duty on ferronickel and blister copper; increased duty on specified telecom equipment to 15%.
  • Customs duty on brood stocks, shrimps, and fish feed reduced to 5%.
  • Duty on ammonium nitrate increased to 10%, and on non-biodegradable plastics to 25%.
  • Reduced duty on mobile phones, PCBA, and chargers to 15%.
  • Fully exempt custom duties on 25 critical minerals.
  • Increased duty on plastic products.

Union Budget 2024 Highlights - Corporate and Employer Contributions:

  • Corporate tax rate for foreign companies reduced from 40% to 35%.
  • Employer NPS deduction increased to 14%.
  • Provisions for reopening and reassessment of tax cases relaxed, allowing reopening beyond three years if the escaped income is Rs 50 lakh or more.

Union Budget 2024 Highlights - Infrastructure and Development:

  • Capex outlay retained at Rs 11.1 lakh crore.
  • Fiscal deficit estimated at 4.9% of GDP for the current fiscal, aiming for 4.5% by next year.
  • Government lowers planned gross market borrowing by Rs 12,000 crore for FY 2025.
  • Pradhan Mantri Janjatiya Unnat Gram Abhiyan announced for 63,000 tribal villages.
  • Lowering of stamp duty encouraged, with additional reductions for properties purchased by women.
  • Establishment of 100 branches of India Post Payments Bank in the North East.
  • Twelve industrial parks to be set under the National Industrial Corridor Development Programme.
  • Rs 10 lakh crore allocated for providing 1 crore houses to urban poor and middle class.
  • Critical mineral mission for domestic production, recycling, and overseas acquisition of critical minerals.

Union Budget 2024 Highlights - Budget Announcement for MSMEs:

  • Mudra Loan eligibility limit increased to Rs 20 lakh.
  • Turnover threshold for mandatory onboarding on the TReDS platform reduced to Rs 250 crore.
  • Credit Guarantee schemes for MSMEs introduced, with a Rs 100 crore guarantee cover.
  • SIDBI to open 24 new branches.
  • Financial support for 50 multi-product food irradiation units and 100 food quality testing labs.
  • E-Commerce Export Hubs to be set up in PPP mode.

Union Budget 2024 Highlights - State-Specific Announcements:

Budget 2024 For Andhra Pradesh:

  • Social and infrastructure funds for Andhra Pradesh, including financial assistance for Amaravati development and the Polavaram Irrigation project.
  • Package announced for Vizag-Chennai Industrial corridor.
  • Government to provide Rs 15,000 crore financial assistance for Andhra Pradesh for development of Amaravati. Additional amounts promised for future years.
  • Centre to finance and early completion of Polavaram Irrigation project, considered as a lifeline for Andhra Pradesh and its farmers.
  • Under the AP Reorganisation Act, funds will be provided for essential infrastructure such as water, power, railways, and roads and also grants for backward regions of Rayalaseema, Prakasam North coastal Andhra Pradesh, as stated in the Act will be provided.

Budget 2024 For Bihar:

  • Road and expressway projects for Bihar, development of an industrial node at Gaya, and infrastructure funds for temples and power projects.
  • Road and expressways bonanza announced for Bihar.
  • Industrial node at Gaya on Amritsar Kolkata Industrial Corridor to be developed.

Road connectivity projects to be developed at the cost of Rs 26,000 crore:
1. Patna-Purnia Expressway
2. Buxar-Bhagalpur Expressway
3. Bodhgaya, Rajgir, Vaishali and Darbhanga Spur
4. Additional 2-lane bridge over river Ganga at Buzar

  • Funds to develop temples in Bihar and Odisha
  • 2400 MW power projects to be set up at Pirpainti with an investment of Rs 21,400 crore. New airports, medical colleges and sports infrastructure in Bihar will be constructed.
  • An additional allocation to support capital investments will be provided through external assistance from multilateral development banks.

Union Budget 2024 Highlights - Employment and Skilling:

  • Three employment-linked schemes based on EPFO enrolment, with Rs 2 lakh crore allocated for job creation over five years.
  • Direct benefit transfer of one-month wage to new employees, with a salary limit of Rs 1 lakh per month.
  • Reimbursement to employers of up to Rs 3,000 per month for EPFO contributions for each additional employee.
  • New working women hostels and creches.
  • Internship scheme for 1 crore youth with Rs 5,000 per month allowance and Rs 6,000 one-time assistance.
  • Financial support for education loans up to Rs 10 lakh, with e-vouchers for annual interest subvention.

Union Budget 2024 Highlights - Agriculture:

  • Rs 1.52 lakh crore allocated for agriculture and allied sectors.
  • Promotion of shrimp production and establishment of Nucleus Breeding Centres.
  • Release of 109 high-yielding and climate-resilient crop varieties.
  • Development of large-scale vegetable production clusters.
  • Aatmanirbharta mission for pulses and oilseeds.

Union Budget 2024 Highlights - Focus on Middle-Class and Social Welfare:

  • The budget emphasizes support for the middle class, employment, skilling, MSMEs, women, youth, and farmers.
  • Allocation of Rs 3 lakh crore for women-centric schemes.
  • Nine priorities for generating employment, including productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms.

Economic Outlook:

  • India’s economic growth continues to be strong despite global uncertainties.
  • Inflation is low and stable, moving towards the 4% target.

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