The Union Budget, 2024, presented by the Finance Minister Ms. Nirmala Sitharaman on July 23, 2024, focuses on bolstering support for various vulnerable groups, including the poor, women, youth and the farmers. This year's budget emphasizes increased spending on infrastructure and job creation, alongside significant tax reforms aimed at easing the financial burden on the people of India. Moreover, the budget list out nine priorities for generating opportunities for all and suggest specific actions and reforms which are required to realize the goal of Viksit Bharat.1
Union Budget, 2024 – Key Highlights:
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- New Tax Slabs for New Tax Regime
Before Union Budget, 2024-2025 After Union Budget, 2024-2025 Tax Slab for FY 2023-24 Tax Tax Slab for FY 2024-25 Tax Rate Upto Rs. 3 lakh NIL Upto Rs. 3 lakh NIL Between Rs. 3 lakh – Rs. 6 lakh 5% Between Rs. 3 lakh – Rs. 7 lakh 5% Between Rs. 6 lakh – Rs. 9 lakh 10% Between Rs. 7 lakh – Rs. 10 lakh 10% Between Rs. 9 lakh – Rs. 12 lakh 15% Between Rs. 10 lakh – Rs. 12 lakh 15% Between Rs. 12 lakh – Rs. 15 lakh 20% Between Rs. 12 lakh – Rs. 15 lakh 20% More than 15 lakh 30% More than 15 lakh 30% - The Standard Deduction under the New Tax Regime has been increased from Rs 30,000 to Rs. 75,000.
- Capital gains taxation has been simplified: Short-term capital gains are reduced to 20%, and long-term capital gains to 12.5% for certain assets. Unlisted bonds and debentures will now be subject to capital gains tax.
- The budget has eliminated the indexation benefit for immovable assets such as real estate, meaning property sellers can no longer inflate their purchase price to lower their capital gains.
- Angel tax has been abolished for all investors.
- The government will make necessary amendments to the Insolvency and Bankruptcy Code (IBC) and strengthen tribunals. An Integrated Technology Platform will be set up to improve IBC outcomes.
- Customs duty for both gold and silver has been reduced to 6%.
- Duty on mobile phones, mobile PCBA, and chargers has been reduced to 15%.
- Increased customs duty on plastic products.
- To increase the participation of women, working women hostels and crèches will be set up.
- A credit guarantee scheme will be introduced for MSMEs for purchase of machinery and equipment without any collateral.
- A comprehensive scheme for providing internship opportunities in 500 top companies to 1 crore youth.
- Corporate tax levied on foreign companies has been reduced to 35% from 40%.
Conclusion
This Union budget has covered all of its targeted aspects while still focusing on the development of the nation overall. The Union budget has showcased that India is one of the most rapidly developing countries and focuses on enhancing the same. Through its various schemes expanded and newly introduced, it has focused on the development of the youth, poor, women and the common man, directing its resources to provide for the betterment and upliftment of the rural areas. The Union Budget has put the financial development on the backburners but still the government has focused on socio-economic policies that will sustain growth and fulfill aspirations. The Union Finance Minister Nirmala Sitharaman stated that the whole belief of 'nation-first' supported by the government in 2014 to fix the economy has been left behind and now the economy has been mended to focus on highly sustainable progress with all round development.
Ritvik Kashyap, Associate Advocate at S.S. Rana & Co. has assisted in the research of this article.
1 https://www.investindia.gov.in/team-india-blogs/indias-union-budget-2024-25-key-highlights
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