Union Budget 2024 Summary
Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in Parliament, marking her seventh consecutive budget presentation. The budget focuses on increased spending, job creation, and tax reforms, with significant attention to the poor, women, youth, and farmers.
Tax Reforms
- Revision in Tax Slabs: The new tax regime has revised tax slabs, providing savings of up to ₹17,500 for taxpayers.
- 0-3 lakh: Zero tax
- 3-7 lakh: 5%
- 7-10 lakh: 10%
- 10-12 lakh: 15%
- 12-15 lakh: 20%
- 15 lakh & above: 30%
- Standard Deduction: Increased from ₹50,000 to ₹75,000 under the new tax regime.
Capital Gains Taxes
- Short-term Gains: Tax on specified financial assets increased from 15% to 20%.
- Long-term Gains: Tax on all assets raised to 12.5% from 10%.
- Exemption Limit: Increased from ₹1 lakh to ₹1.25 lakh annually for certain listed financial assets.
- Angel Tax Abolished: For all investor classes to support start-ups and innovation.
Fiscal Deficit
- FY25 Projection: Fiscal deficit projected at 4.9% of GDP, down from 5.1% in the Interim Budget.
- Expenditure and Receipts: FY25 expenditure projected at ₹48.21 trillion and receipts at ₹32.07 trillion.
Customs Duty Reductions
- Gold and Silver: Duties reduced to 6%, platinum to 6.4%.
- Lithium, Copper, Cobalt: Exempt from Custom Duty.
- Solar Cell and Panel Manufacturing: Expanded list of exempted capital goods.
- Spandex Yarn: Basic Customs Duty reduced from 7.5% to 5%.
Job Creation and Infrastructure
- Extensive job creation expected over the next five years.
- New schemes for promoting agriculture.
- Rs 26,000 crore for roads and expressways in Bihar
- Rs 15,000 crore financial assistance for Amaravati’s development with promises for future funding
Additional significant Budget announcements
- 100 new branches of India Post Payments Bank to be established in the North East
- Rs 10 trillion has been budgeted for delivering 1 crore houses to the urban poor and middle class.
- The Mudra loan limit has risen from Rs 10 lakh to Rs 20 lakh for individuals who successfully repaid loans under the TARUN category.
- Three new employment-related projects planned with a Rs 2 trillion allocation for job creation over five years, targeting skills for 20 lakh youth and increasing women's involvement
- Rs 1.52 trillion allotted for agriculture and related industries.
- Rs 3 trillion has been allocated for women-centric projects.
