Finance Minister Nirmala Sitharaman presented the Union Budget for FY2024-25. She said that the budget is focused on Gareeb, women, youth and farmers. Here are the key highlights from the speech:

The budget envisages sustained efforts on the following 9 priorities 

1) Productivity and resilience in Agriculture

2) Employment & Skilling

3) Inclusive Human Resource Development and Social Justice

4) Manufacturing & Services

5) Urban Development

6) Energy Security

7) Infrastructure

8) Innovation, Research & Development and

9) Next Generation Reforms

Capex for FY25 is at ₹11.11 lakh crore or 3.4% of GDP, same as announced in the Interim Budget.

₹2 lakh crore for 5 new schemes was announced. The focus will be on jobs and skilling of 4.1 crore youth. 

Changes in tax slabs

Old Regime – No changes

New Regime

New Tax Slab

Standard deduction: for salaried individuals is proposed to be increased from ₹50,000 to ₹75,000 under the new tax regime.

The revised tax slabs will result in ₹17,500 saving in income tax.

Allocation to Various Sectors

Defence – ₹4,54,773 crore

Rural Development – ₹2,65,808 crore

Agriculture and Allied Activities – ₹1,51,851 crore

Home Affairs – ₹1,50,983 crore

Education – 1,25,638 crore

IT and Telecom – ₹1,16,342 crore

Health – ₹89,287 crore

Energy – ₹68,769 crore

Social Welfare – ₹56,501 crore

Commerce & Industry – ₹47,559 crore

Expensive or Economical?

Traders and Investors, Please Know

  • Security Transactions Tax on futures increased to 0.02% (from 0.01% earlier),

and on options from 0.0625% to 0.1% effective from October 1, 2024

  • STCG tax on certain financial assets increased to 20% from 15% earlier
  • LTCG tax  on financial and non-financial assets increased to 12.5% from 10% earlier
  • Income received on buyback of shares will be taxed in the hands of the recipient
  • Listed financial assets should be held for at least one year, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term 

Tax on Real Estate Sales

Removal of indexation benefit on sale of property

LTCG tax at 12.5% without indexation benefit (from 20% with indexation benefit earlier)

Tourism-Related Announcements

  • Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor modelled on Kashi Vishwanath Temple Corridor 
  • Comprehensive development initiative for Rajgir
  • Development of Nalanda as a tourist center besides reviving Nalanda University to its glorious stature

Other Important Announcements

  • Corporate tax rate on foreign companies reduced from 40% to 35%
  • Assistance to develop Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, and so on, making it an ultimate tourism destination
  • Industrial parks to be developed in or near 100 cities
  • 1 crore youth to be skilled by India’s top companies in five years;12-month Prime Minister’s Internship with monthly allowance of ₹5,000
  • Incentives to be provided to both employees and employers as per their EPFO contributions for the first 4 years of employment.
  • Provision of ₹1.52 lakh crore for the agriculture and allied sectors