Nirmala Sitharaman, Union Finance Minister on Tuesday (July 23) presented the Budget 20243 in the Lok Sabha, marking her seventh consecutive budget and the first budget under Modi 3.0.
Here is a concise and overview of the key highlights of the Union Budget 2024:
1. Revised Tax Structure Under the New Regime
The new tax regime introduces updated tax slabs to simplify personal income tax
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2. Angel Tax Abolished
Finance Minister Sitharaman during the budget speech announced that the government proposes to remove angel tax on all types of assets, as part of the Union Budget for 2024-25.
3. Increased Deductions for Taxpayers
Standard Deduction: Raised from Rs 50,000 to Rs 75,000 for salaried individuals under the new tax regime. This adjustment allows salaried employees to save up to Rs 17,500 on income tax.
Family Pension Deduction: Increased from Rs 15,000 to Rs 25,000, benefiting approximately four crore salaried individuals and pensioners.
4. Reduced TDS for E-Commerce
The Tax Deducted at Source (TDS) rate for e-commerce operators will be reduced from 1 per cent to 0.1 per cent.
5. Changes in Capital Gains Taxation
Short-Term Capital Gains: Taxed at 20 per cent for certain assets, with other financial and non-financial assets taxed at applicable income tax rates.
Capital Gains Exemption Limit: Raised to Rs 1.25 lakh per year for specific assets.
Long-Term Capital Gains (LTCG): Tax rate increased to 12.5 per cent on certain assets.
Unlisted Bonds and Debt Mutual Funds: Continue to be taxed at applicable rates.
6. Corporate Tax Reduced
Corporate Tax Rate for Foreign Companies reduced from 40 per cent to 35 per cent.
7. Support for MSMEs and Manufacturing
Credit Guarantee Scheme - Enhanced support for MSMEs, including a credit guarantee scheme and term loans for machinery purchases.
Technology Support Package - Introduced to aid technology upgrades for MSMEs.
SIDBI Expansion - SIDBI will open 24 new branches to better serve MSME clusters.
8. Three cancer drugs exempted from duty
The FM announced the exemption of three crucial cancer medicines from the ambit of customs duties. These medicines that have been exempted from taxation are Trastuzumab Deruxtecan, Osimertinib and Durvalumab. The government levied the custom duty of 10 per cent on these crucial medicinal products.
9. Bihar Andhra allies financial support
Nirmala Sitharaman announced new airports, medical colleges, and highways in Bihar, as well as special financial support for Andhra Pradesh in Budget 2024.
For Andhra Pradesh recognising the state's need for capital, she said that Rs 15,000 crore will be allocated through multilateral agencies for the current financial year, with additional amounts planned for future years.
10. No changes in tobacco taxation
Finance Minister during her budget speech announced no changes to tobacco taxes, bringing relief to companies like ITC, which earn most of their revenue from cigarettes.
11. Reduce the BCD on mobile phones
Mobile Phones to get cheaper, as FM Nirmala Sitharaman reduces basic customs duty to 15 per cent.
12. What gets costlier and Cheaper
Cheaper- Tax reductions on Steel, Copper, Gold, Silver, and Platinum; Cancer Medicines Now Duty-Free
Costlier - Customs Duty hike on Monium Nitrate, Political banners, and exported telecom equipment.
13. Opposition Reaction To the Budget
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