Union Budget 2024 Highlights

Union Budget 2024 Highlights: Finance Minister Nirmala Sitharaman presented the Union Budget 2024, emphasizing support for the poor, women, youth, and farmers. Key measures include increased spending, job creation, and tax relief for the middle class, along with significant changes in taxation.

Tax Announcements:

Income Tax:

Review of Income Tax Act 1961 to benefit the middle class, to be completed in the next six months.

New Tax Slabs under the New Tax Regime:

Up to Rs 3 lakh: No tax
Rs 3 – 7 lakh: 5%
Rs 7 – 10 lakh: 10%
Rs 10 – 12 lakh: 15%
Rs 12 – 15 lakh: 20%
Above Rs 15 lakh: 30%

Standard Deduction raised from Rs 30,000 to Rs 75,000.
Family Pension Deduction increased from Rs 15,000 to Rs 25,000.

Capital Gains and Securities Transaction Tax (STT):

Simplified Capital Gains Taxation:

Short-term capital gains tax reduced to 20%.
Long-term capital gains tax reduced to 12.5% for certain assets.
Unlisted bonds and debentures to attract capital gains tax.

STT Increase:

Sale of an Option: Increased to 0.1% from 0.0625%.
Sale of Futures in Securities: Increased to 0.02% from 0.01%.

Additional Tax Measures:

Indexation Benefit Removed on the sale of property.
TDS on E-commerce reduced to 0.1% from 1%.
Angel Tax Abolished for all investor classes.
Employer NPS Deduction increased to 14%.
Corporate Tax Rate on foreign companies reduced from 40% to 35%.

Reassessment Relaxation: Assessment can be reopened beyond three years only if the escaped income is Rs 50 lakh or more, up to a maximum of five years.
Non-reporting of Foreign Assets: Non-reporting of movable foreign assets by Indian professionals like ESOPs up to Rs 20 lakh de-penalized.

Customs Duty Changes:

Reductions:

Gold and silver: Reduced to 6%.
Platinum: Reduced to 6.4%.
Ferronickel, blister copper: Reduced duty.
Certain brood stocks, shrimps, and fish feed: Reduced to 5%.
Mobile phones, Mobile PCBA, and chargers: Reduced to 15%.
Duties exempted for 25 critical minerals.
Methylene diphenyl diisocyanate (MDI) for spandex yarn: Reduced to 5% from 7.5%.

X-ray tubes and flat panel detectors for medical X-ray machines under the Phased Manufacturing Programme.

Increases:

Specified telecom equipment: Increased to 15% from 10%.
Ammonium nitrate: Increased to 10%.
Non-biodegradable plastics: Increased to 25%.

Capex Outlay:

Retained at Rs 11.1 lakh crore for infrastructure.
Fiscal Deficit: Estimated at 4.9% of GDP for the current fiscal, aiming to reach 4.5% next year.
Gross Market Borrowing: Lowered by Rs 12,000 crore to Rs 14.01 lakh crore.

Social and Development Programs:

Pradhan Mantri Janjatiya Unnat Gram Abhiyan: For 63,000 tribal villages, benefitting 5 crore tribals.
Rental Housing Scheme: Dormitory-type rental housing for industrial workers in PPP mode.
Infrastructure Development: 12 industrial parks under the National Industrial Corridor Development Programme.
Housing: Rs 10 lakh crore for 1 crore houses for urban poor and middle class.
Critical Mineral Mission: Domestic production, recycling, and overseas acquisition of critical minerals.
Employer EPFO Contribution: Reimbursement up to Rs 3,000 per month for two years for each additional employee.
Internship Scheme: For 1 crore youth in 500 top companies with a Rs 5,000 monthly allowance and one-time assistance of Rs 6,000.
Women and Youth Programs: Working women hostels, creches, and skilling schemes for 20 lakh youth over five years.
Higher Education Loans: Financial support up to Rs 10 lakh with e-vouchers for annual interest subvention of 3%.

Agriculture:

Agriculture and Allied Sectors: Rs 1.52 lakh crore allocation.
Shrimp Production: Promotion and financial support.
New Crop Varieties: 109 high-yielding and climate-resilient varieties.
Natural Farming: Initiation of 1 crore farmers into natural farming in two years.
Bio-input Resource Centres: Establishment of 10,000 centres.
Pulses and Oilseeds: Aatmanirbharta mission for crops like mustard, groundnut, sesame, soybean, and sunflower.
Vegetable Clusters: Development near major consumption centres.
Shrimp Broodstocks: Nucleus breeding centres and financing through NABARD.

MSMEs:

Mudra Loan Eligibility: Increased to Rs 20 lakh for successful TARUN category borrowers.
TReDS Platform: Lower turnover threshold for mandatory onboarding from Rs 500 crore to Rs 250 crore.
Credit Guarantee Schemes: Rs 100 crore guarantee cover.
SIDBI Expansion: 24 new branches within three years.
Food Processing Support: 50 multi-product food irradiation units and 100 food quality and safety testing labs.
E-Commerce Export Hubs: To be set up in PPP mode.

Regional Development:

Andhra Pradesh:

Financial Assistance: Rs 15,000 crore for Amaravati, with additional future allocations.
Vizag-Chennai Industrial Corridor: Package announced.
Polavaram Irrigation Project: Early completion funding.
Infrastructure Grants: As per AP Reorganisation Act for water, power, railways, and roads.

Bihar:

Road and Expressways: Rs 26,000 crore for Patna-Purnia Expressway, Buxar-Bhagalpur Expressway, and more.
Industrial Node: At Gaya on Amritsar-Kolkata Industrial Corridor.
Power Projects: 2400 MW at Pirpainti with Rs 21,400 crore investment.
Development Funds: For temples in Bihar and Odisha.
Capital Investments: Additional allocations through external assistance.

Tourism:

Vishnupad and Mahabodhi Temples: Transformation into world-class tourist destinations.
Rajgir and Nalanda: Comprehensive development and revival of Nalanda University.
Odisha: Assistance for developing scenic beauty, temples, monuments, wildlife sanctuaries, and beaches.

Space Industry:

Venture Capital Fund: Rs 1,000 crore for space startups.
Land Records Digitization: GIS mapping and IT-based property record administration system.

Employment and Skilling:

Job Creation Schemes: Rs 2 lakh crore allocation over five years for three schemes.
Direct Benefit Transfer: One-month wage for new employees up to Rs 15,000 in three instalments.
EPFO Reimbursement: Rs 3,000 per month for two years for each additional employee.
Working Women Hostels and Creches: To facilitate higher participation of women in the workforce.
Internship Scheme: For 1 crore youth with Rs 5,000 monthly allowance.
Higher Education Loans: Financial support up to Rs 10 lakh with interest subvention e-vouchers.

This union budget 2024 aims to provide economic relief and growth opportunities across various sectors, emphasizing fiscal prudence and inclusive development.

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