Budget 2024 Highlights: FM Nirmala Sitharaman announces changes in income tax slabs, STT, STCG, LTCG, and angle tax

2024 Budget Highlights: Finance Minister Nirmala Sitharaman today presented the Union Budget 2024 in Parliament today for the seventh consecutive time, surpassing the late Morarji Desai’s record of six consecutive budgets. Sitharaman announced that the Budget is focused on Gareeb, women, youth and farmers. FM Sitharaman announced plans to raise spending, create jobs and provide relief to the middle class. The government will allocate Rs 2 lakh crore for job creation over the next five years. She said that the Budget is focused on middle-class, employment, skilling, employment and MSMEs. FM announced new schemes for promoting agriculture and big road and expressway bonanza for Bihar.

Budget 2024 Highlights: Here are the key highlights from Finance Minister Nirmala Sitharaman’s Budget Speech:

2024 Budget Income Tax Announcements

 FM Nirmala Sitharaman announces comprehensive review of Income Tax Act 1961 to help middle-class.

 STT increased from 0.1 percent to 0.2 percent. STT also increased for Future & Options: STT on F&Os proposed to be increased to 0.02% and 0.01% respectively

Standard Deduction on New Tax Regime raised from Rs 30,000 to Rs 75,000. Rs 17,500 saving

New Tax slabs announced under New Tax Regime
Up to Rs 3 lakh no tax
Rs 3 -7 lakh 5 percent
Rs 7-10 lakh 10 percent
Rs 10-12 lakh 15 percent
Rs 15 lakh 30 percent

TDS on e-commerce cut to 0.1 percent from 1 percent

➤ Capital gains taxation to be hugely simplified: Short-term capital gains to be 20%. LTCG to be 12.5 percent for some assets

➤ Unlisted bonds, debentures to attract tax on capital gains

➤ Angel tax to be abolished for all investor classes

2024 Budget 2024 Custom Duty Changes:

1. Basic customs duty on gold and silver reduced to 6 per cent and platinum to 6.4 per cent.
2. Basic customs duty reduced on ferronickel, blister copper; Duty Increasing to 15 per cent from 10 per cent on specified telecom equipment.
3. Customs duty reduced on certain brood stocks, shrimps and fish feed to 5 per cent.
4. Customs duty raised on ammonium nitrate to 10 per cent and 25 per cent on non-biodegradable plastics.

2024 Budget Capex outlay retained at Rs 11.1 lakh crore.Capex outlay for infrastructure retained at interim budget target of Rs 11.1 lakh crore.

Budget 2024 Fiscal Deficit

Fiscal deficit estimated at Rs 4.9% of GDP for the current fiscal and aim to reach 4.5% by the end of next year. The solution will be evolved for NPS as per the recommendation provided by the review committee.

Budget 2024 Tax Announcements

➤ Three more medicines for cancer patients fully exepted from customs duty

➤ Duty cut on mobiles and accessories to 15%

➤ Custom duty hike on plastic products

Pradhan Mantri Janjatiya Unnat Gram Abhiyan announced for 63,000 tribal villages, benefitting 5 crore tribals. The programme aims at achieving saturation coverage for tribal families in tribal-majority villages and aspirational districts.

• Centre will ask states to lower stamp duty. Govt to also consider further lowering duties for properties purchased by women.
• Centre to set up 100 branches of India Post Payments Bank in North East.
• Twelve industrial parks to be set
• Rs 10 lakh crore allocated for providing 1 crore houses to urban poor and middle class
• FM Sitharaman announces critical mineral mission. Govt to launch auction of first offshore mining blocks.
• Rental housing scheme announced for working class. Govt will facilitate dormitory type rental housing for industrial workers in PPP mode.
• Appropriate changes will be made to IBC and steps will be taken to strengthen tribunals: FM in LS.

Budget Announcement for MSMEs

Mudra Loan eligibility limit increased: The limit of mudra loans will be enhanced to Rs 20 lakh from Rs 10 lakh for those who have availed and successfully repaid loans under TARUN category. Credit Guarantee schemes for MSMEs will be introduced. A guarantee cover of Rs 100 crore will be provided for higher amount of loan.

Budget Announcement for Andhra Pradesh

1. Social and infra funds announced for Andhra Pradesh. Backward region grant will be provided to three districts of Andhra Pradesh.
2. Package announced for Vizag-Chennai Industrial corridor
3. Government to provide Rs 15,000 crore financial assistance for Andhra Pradesh for development of Amaravati. Additional amounts promised for future years.
4. Centre is fully committed to financing 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 Announcement for Bihar

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

Budget Announcement for Jobs

1. Govt to launch three employment-linked schemes. Budget proposes to allocate Rs 2 lakh crore for job creation over 5 years. New employment skilling scheme to provide skills 20 lakh youth in 5 years, says FM Sitharaman. The scheme will also enhance woman participation, she said.
2. Internship scheme for youth announced. 1 crore youth in 500 top companies with Rs 5,000 per month as internship allowance and one-time assistance of Rs 6,000 to be provided.
3. Working women hostels to be opened
4. Financial support for loans up to Rs 10 lakh will be provided for higher education in domestic institutions.
5. Govt to provide incentive to 30 lakh youth entering job market by providing 1 month PF contribution
6. Priority 2 for Employment and Skilling. FM announced employment-linked incentive scheme.

Budget 2024 announcements for Agriculture:

1. Rs 1.52 lakh crore allocated for agriculture and allied sectors
2. Govt will promote shrimp Production
3. Govt will promote shrimp Production
4. Mission for pulses and oilseeds to achieve atmanirbharta in oilseeds like sunflower.

• Highlighting priority 1, Sitharman said that the research in agriculture will be promoted for raising productivity. Govt will undertake comprehensive review of research to develop climate resilient seeds. Funding to be providing at a mission mode to private and public sector.
• FM Sitharaman said that the Budget is focused on middle-class, employment, skilling, employment and MSMEs.
• Rs 3 lakh crore allocation announced for women centric schemes
• FM announces nine priorities for generating employment for all. Budget’s 9 priorities include productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms
• Rs 2 lakh crore package announced for 5 schemes.
• Sitharaman said that the Budget is focused on poor, women, youth and farmer.
• Global uncertainty poses a downside for growth. Despite these headwinds India’s growth continue to be higher.
• he people of India have reposed faith in the Prime Minister Narendra Modi and given him a historic third term.
• India’s economic growth continues to be the shining exception and will remain so in years ahead. India’s inflation continues to be low and stable moving towards the 4% target.