Union Budget 2024
In her speech on Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-25, highlighting initiatives and changes in various sectors, including tax, MSMEs, manufacturing, and agriculture.
Key Focus Areas:
* Agriculture
* Employment
* Inclusive Development
* Manufacturing and Services
* Urban Development
* Energy
* Infrastructure
* Innovation, R&D, and NexGen Reforms
Major Announcements:
* Fiscal Deficit: 4.9% of GDP for the current fiscal year, aiming for 4.5% reduction by the end of the following year.
* Gross Market Borrowing: Reduced by Rs 12,000 crore for FY25 to Rs 14.01 lakh crore.
* Employer NPS Contributions Deduction: Increased to 14%.
* Income Tax Act Review: Comprehensive review announced to support the middle class.
* New Tax Regime:
* Standard deduction increased to Rs 75,000.
* Deduction on family pension raised to Rs 25,000.
* New tax brackets introduced:
* 0-3 Lakh – Nil
* 3-7 Lakh – 5%
* 7-10 Lakh – 10%
* 10-12 Lakh – 15%
* 12-15 Lakh – 20%
* 15 Lakh Above – 30%
* TDS on E-commerce: Reduced to 0.1% from 1%.
* Angel Tax Abolition: Removed for all categories of investors.
* Customs Duty:
* Gold and silver: Reduced to 6%.
* Platinum: 6.4%.
* Ferronickel and blister copper: Reduced.
* Specified telecom equipment: Increased to 15%.
* Brood stocks, shrimps, and fish feed: Reduced to 5%.
* Mobile phones, mobile PCBA, and chargers: Reduced to 15%.
* 25 critical minerals: Duty waived.
* Housing: Rs 10 lakh crore allocated for constructing 1 crore houses for the urban poor and middle class.
* Infrastructure Capex: Maintained at Rs 11.1 lakh crore as per the interim budget.
* Corporate Tax Rate for Foreign Companies: Reduced to 35%.
* Employment and Skill Development:
* Prime Ministerial Package launched with five schemes worth Rs 2 lakh crore.
* Rs 1.48 lakh crore allocated for education, employment, and skill enhancement.
* Three employment-linked schemes:
* New hires to receive direct benefit transfers of up to Rs 15,000.
* Employers to receive reimbursements of up to Rs 3,000 per month for two years for new employees.
* One crore internships to be provided over five years.
* Focus on Bihar and Andhra Pradesh:
* Funding for new airports, medical facilities, and sports infrastructure in Bihar.
* Rs 26,000 crore allocated for highways in Bihar.
* Rs 15,000 crore allocated for Andhra Pradesh with further allocations in subsequent years.
