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Budget 2024 highlights: Key income tax, personal finance announcements

Feb 1, 2024

Synopsis
Interim Budget 2024 key highlights: Let us take a look at the most important income tax and personal finance-related announcements made in the interim Budget 2024.

Union Finance Minister Nirmala Sitharaman presented the interim Budget 2024 on Thursday, February 1, 2024. This is not a full Budget, but only a vote on account.

Even though this is an interim budget, there were great expectations from the FM.

Let us take a look at the most important income tax and personal finance-related announcements made in the interim Budget 2024.

  1. Finance Minister Nirmala Sitharam announced a rooftop solar panel scheme for 1 crore houses up which will offer 300 units for free under Pradhan Mantri Suryodaya Yojana.
  2. Pradhan Mantri Suryodaya Yojana rooftop solar power scheme will help users save up to Rs 18000 a year in electricity bills
  3. Govt to launch a scheme to help deserving sections of the middle class, as quoted by PM Modi "living in rented houses, slums or chawls or unauthorized colonies"-- to buy or build their own houses.
  4. The Finance Minister has announced withdrawal of all outstanding disputed direct tax demand up to Rs 25,000
  5. This move will benefit 1 crore tax payers as per the speech.
  6. Tax slabs and tax structure has been kept unchanged.

Here are the income tax slabs for FY 2023-24 (AY 2024-25) in the new tax regime that will also be applicable for FY 2024-25 as per the interim Budget 2024 proposals:

 
Income tax slabs (In Rs)
Income tax rate (%)
Up to 3,00,000 0
3,00,001-6,00,000 5%
6,00,001-9,00,000 10%
9,00,001-12,00,000 15%
12,00,001-15,00,000 20%
Above 15,00,001 30%
 


Here are the income tax slabs for FY 2023-24 (AY 2024-25) in the old tax regime for individuals below 60 years of age, senior citizens and super senior citizens.

Current income tax slabs for individuals below 60 years

Income tax slabs (In Rs)
Income tax rate (%)
Up to 2,50,000 0
2,50,001 - 5,00,000 5%
5,00,001-10,00,000 20%
Above 10,00,001 30%
 

Current income tax slabs for senior citizens

Income tax slabs (In Rs)
Income tax rate (%)
Up to 3,00,000 0
3,00,001 - 5,00,000 5%
5,00,001-10,00,000 20%
Above 10,00,001 30%
 


Current income tax slabs for super senior citizens

Income tax slabs (In Rs) Income tax rate (%)
Up to 5,00,000 0
5,00,001-10,00,000 20%
Above 10,00,001 30%
 

Cess will be levied at 4% on the income tax amount. Surcharges will be levied on incomes above Rs 50 lakh.

What is Interim Budget?

An interim budget serves as a framework for managing provisional expenditures over a short duration, usually spanning a few months, until a new government takes office at the central level. The conclusion of the fiscal year on March 31 corresponds with the typical transition period to a new government in late May or early June. The interim budget is strategically crafted to meet the financial requirements and tackle revenue considerations of the recently established government during this interim period. Following the inauguration of the new government, a comprehensive budget for the remaining portion of the fiscal year is typically presented in July.

What is Vote on Account?

Vote on Account is passed through the interim budget, enabling the government to address expenses in the period leading up to elections. This procedure is conducted as a customary practice, devoid of any major deliberations. Essentially, it serves as an upfront allocation necessary for the government's operational continuity until the formal approval of demands for grants and the subsequent passage of the Finance Bill and Appropriation Bill.

[The Economic Times]

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