Union Budget 2024: Smartphones to Become More Affordable in India
In her seventh consecutive presentation of the Union Budget, Finance Minister Nirmala Sitharaman announced significant reductions in Basic Customs Duty (BCD) on various imported goods, including smartphones.
What is BCD?
BCD is a tax levied on all imported products as a percentage of their assessed value. A reduction in BCD directly translates to lower prices for consumers.
BCD Reduction for Smartphones
The Union Budget 2024 has reduced BCD on mobile phones, mobile printed circuit board assembly (PCBA), and mobile chargers to 15%. This reduction is expected to make smartphones and other electronic devices more affordable in India.
Other BCD Reductions
In addition to smartphones, the budget proposed exemption from customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements. These minerals are essential for industries such as nuclear energy, renewable energy, and electronics.
Exemptions for Solar Cell and Panel Manufacturing
The list of capital goods exempted from customs duty for use in the manufacture of solar cells and panels has been expanded.
Import Duty on Oxygen-Free Copper Removed
Customs duty on oxygen-free copper, used in the production of resistors, has been removed. Exemptions have also been granted for certain parts used in the manufacture of connectors.
Impact on Smartphone Prices
The reductions and exemptions announced in the budget mean that the components used in smartphone manufacturing will now face lower customs duties. This is expected to result in a substantial decrease in smartphone prices in India. Lithium batteries, commonly found in smartphones and tablets, are also likely to become more affordable.
Income Tax Slabs Revised
The Union Budget also revised income tax slabs under the new tax regime for the fiscal year 2024-25:
* No tax on income up to Rs 3 lakh
* 5% tax on income between Rs 3 lakh and Rs 7 lakh
* 10% tax on income between Rs 7 lakh and Rs 10 lakh
* 15% tax on income between Rs 10 lakh and Rs 12 lakh
* 20% tax on income between Rs 12 lakh and Rs 15 lakh
* 30% tax on income above Rs 15 lakh
