Union Budget 2024: Here are the key highlights from FM Sitharaman's speech
New Delhi, July 23, 2024
Finance Minister Nirmala Sitharaman's Union Budget 2024 speech focused on increased spending, job creation, and tax reforms
Union Budget 2024 was presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday, marking her seventh consecutive presentation. Key announcements highlighted the Budget’s focus on the poor, women, youth, and farmers. Sitharaman outlined plans to increase spending, generate jobs, and offer middle-class relief, with extensive job creation expected over the next five years and significant changes in tax brackets and rates.
New schemes for promoting agriculture and major road and expressway projects for Bihar and Andhra Pradesh were also announced.
Here are the key highlights from Nirmala Sitharaman’s Budget speech:
Revision in tax slabs under the new tax regime
- The tax structure will be revised, saving taxpayers Rs 17,500
- New tax rates are as follows:
0-3 lakh: Zero tax
3-7 lakh: 5 per cent
7-10 lakh: 10 per cent
10-12 lakh: 15 per cent
12-15 lakh: 20 per cent
15 lakh & above: 30 per cent
- Standard Deduction on New Tax Regime increased from Rs 30,000 to Rs 75,000.
Changes in capital gains taxes
>Short-term gains tax on specified financial assets increased from 15 per cent to 20 per cent; rates on other financial and non-financial assets remain unchanged
>Long-term gains tax on all assets raised to 12.5 per cent from earlier 10 per cent
>Exemption limit on capital gains for certain listed financial assets increased from Rs 1 lakh to Rs 1.25 lakh annually
>Long-term classification for listed financial assets is over one year; for unlisted and non-financial assets, it’s over two years
>Unlisted bonds, debentures, debt mutual funds, and market-linked debentures will attract applicable capital gains tax rates, regardless of holding period
>The Budget proposed to abolish ‘angel tax’ for all investor classes to support start-ups and innovation.
FY25 Fiscal deficit projected at 4.9 per cent of GDP
- FY25 fiscal deficit projected at 4.9 per cent of GDP, down from 5.1 per cent in the Interim Budget
- Commitment to reduce the deficit below 4.5 per cent next year
- Expenditure for FY25 projected at Rs 48.21 trillion
- Receipts for FY25 projected at Rs 32.07 trillion.
Customs duty reductions
>Gold and silver duties reduced to 6 per cent, platinum to 6.4 per cent
>Lithium, Copper, Cobalt exempt from Custom Duty
>Expanded list of exempted capital goods for solar cell and panel manufacturing
>Basic Customs Duty on spandex yarn reduced from 7.5 per cent to 5 per cent
>Exempt customs duty on manufacturing of connectors and Oxygen-fused copper.
Duty cuts on medicines and mobile phones
- Customs duty fully exempted on three additional cancer medicines
- Duty on mobile devices and accessories reduced to 15 per cent
- Increased customs duty on plastic products.
Budget allocations for Andhra Pradesh and Bihar
- Social and infrastructure funds announced for Andhra Pradesh, with a backward region grant for three districts
- Package for Vizag-Chennai Industrial corridor
- Rs 15,000 crore financial assistance for Amaravati’s development with promises for future funding
- Rs 26,000 crore for roads and expressways in Bihar
- Funds allocated for temple development in Bihar and Odisha.
Other essential Budget announcements
>100 new branches of India Post Payments Bank to be established in the North East
>Twelve new industrial parks to be created
>Rs 10 trillion allocated for providing 1 crore houses to the urban poor and middle class
>FM Sitharaman announces a critical mineral mission and the auction of the first offshore mining blocks.
>Rental housing scheme for industrial workers in PPP mode
>Mudra loan limit increased from Rs 10 lakh to Rs 20 lakh for those who successfully repaid loans under the TARUN category
>Three new employment-linked schemes proposed with Rs 2 trillion allocation for job creation over five years, targeting skills for 20 lakh youth and increased women’s participation
>Rs 1.52 trillion allocated for agriculture and allied sectors
>New 109 high-yielding and climate-resilient varieties of 32 field and cultivation crops will be released for farmers
>Rs 3 trillion allocation announced for women-centric schemes.
[The Business Standard]
