Key Highlights of Union Budget 2024
- Share.Market
- 3 min read
- 24 Jul 2024
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
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