Nirmala Sitharaman made her seventh consecutive budget at the Ministry of Finance, breaking the record of former PM Morarji Desai. The Union Budget 2024 focuses on changes in income tax structure and improving the ease of doing business in India.
She continued the tradition of wearing a white silk saree and carrying a digital tablet in a traditional ‘bahi-khata’ pouch. And she presented the Budget 2024-25 in a paperless format. Nirmala Sitharaman presented the Union Budget on July 23 at 11 am based on PM Modi’s mantra ‘Sabka Saath Sabka Vikas’. This was the first budget after the re-election in
In India Budget 2024, the government aims to address personal taxation while keeping the fiscal deficit in mind. APP MP Sandeep Pathak cited issues such as high inflation, unemployment, and declining growth rates and criticised the Union Budget. However, these were the result of extreme weather. AA prices went on the rise, the tourism industry bloomed, and around 92 Lakh foreign tourists were reported in 2023.
Key Points of Union Budget 2024-2025
Let’s look at some of the key points of the Union Budget 2024-2025
- The budget also emphasised achieving “Viksit Bharat” by developing the eastern region of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
- The fiscal deficit was estimated at 4.9% of GDP for the year.
- Commitment to reduce fiscal deficit to below 4.5% of GDP by 2025-26.
- It allocates more than ₹11 lakh crore towards capital expenditure, that is about 3.4% of GDP
- Moreover, it allocated ₹3 lakh crore for schemes benefiting women and girls.
- ₹1.48 lakh crore allocated for education, employment, and skilling initiatives.
- The revised tax structure is as followed: it is zero for salary up-to ₹3 lakh, for ₹3 lakh to ₹7 lakh tax rate is 5%, its ₹7 lakh to ₹10 lakh tax rate is 10%, ₹10 lakh to ₹12 lakh tax rate is 15%, for ₹12 lakh to ₹15 lakh tax rate is 20%, for ₹15 lakh and higher tax rate is 30%.
- The standard deduction for salaried employees increased to ₹75,000 from ₹50,000.
- Increase in deduction limit for employer’s contribution to the National Pension System (NPS) from 10% to 14%.
- Simplified capital gains taxation, with some short-term gains taxed at 20%.
- Increase in Securities Transaction Tax on Futures and Options contracts.
- Allocation of ₹2 lakh crore to create employment for 4.1 crore youth over the next five years.
- Launch of internship opportunities in 500 companies for one crore youth.
- It allocates ₹2.66 lakh crore for rural development.
- Launch of PM Gram Sadak Yojana Phase 4 to provide all-weather roads to 25,000 rural habitats.
- Abolition of Angel Tax for investors to support the startup ecosystem.
- It exempts three cancer medicines from customs duty.
- Strengthening production, storage, and marketing of pulses and oil seeds.
- Initiation of one crore farmers into natural farming over the next two years.
- Promotion of private investment in infrastructure through Viability Gap Funding.
- Launch of a rooftop solar scheme to provide free electricity up to 300 units per month to one crore households.
- Development of tourism infrastructure in key locations like Vishnupath temple, Mahabodhi temple, and sites in Odisha.
- Proposal to decriminalize delays in TDS payments up to their filing due date.
- Launch of three employment-linked schemes to provide incentives and PF contributions for new employees.
Union Budget 2024 Criticism
Shashi Tharoor criticized the Union budget 2024. He said “Many things missing in budget.” The budget lacks any mention of MGNREGA, public health expenditure, education expenditure, or any serious measures to improve the income of the bottom 40 percent of the population.
Another Congress leader P Chidambaram, expressed his happiness that the Finance Minister would abolish the Angel Tax. While, he accused it for being copied.
What is Angel Tax
Angel tax refers to a tax on funds raised by startups from investors at a valuation higher than the fair market value, aimed at curbing money laundering.
Final Line
The Finance Minister, Sitharaman has increased standard deductions and revised tax rates for salaried individuals under the new tax regime in the India Budget 2024. Also, there has been a reduction in customs duty on gold, silver, mobile phones, and other goods.
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