Union Budget 2024 Highlights: Here Are the Key Announcements From FM Nirmala Sitharaman’s Speech

In her budget speech, Finance Minister Nirmala Sitharaman announced several significant changes to the new tax regime, aiming to provide relief and support across various sectors. Here are the key highlights:

Changes in Tax Rates and Relief

1. Standard Deduction Increased: The standard deduction in the new tax regime will be increased from R50,000 to Rs 75,000.

2. Revised Tax Slabs:
   0-3 lakh rupees: Nil
   3-7 lakh rupees: 5%
   7-10 lakh rupees: 10%
   10-12 lakh rupees: 15%
   12-15 lakh rupees: 20%
   Above 15 lakh rupees: 30%

3. Income Tax Saving: Salaried employees in the new tax regime will save up to Rs 17,500 in income tax.

Corporate Tax and STT Adjustments

4. Corporate Tax: The corporate tax rate on foreign companies will be reduced to 25%.

5. Securities Transaction Tax (STT): The STT on futures and options (F&O) will be increased to 0.02% and 0.01% respectively.

New Tax Measures and Exemptions

6. Tax on Bonds and Debentures: Unlisted bonds, debentures, debt mutual funds, and market-linked debentures will be taxed at the slab rate.

7. Angel Tax: The government announces the abolition of the angel tax.

8. Charity Tax Exemption: Two tax exemption regimes for charities will be merged into one.

9. Long-term Capital Gains: Long-term capital gains on all financial and non-financial assets will attract a tax rate of 12.5%, with an exemption limit set at ₹1.25 lakh per year.

Support for Education and NPS

10. Education Loans: Financial support for loans up to Rs 10 lakhs for higher education in domestic institutions will be provided.

11. NPS Vatsalya Programme: The NPS Vatsalya programme will be made available for parents to invest in on behalf of their children, with the account being transferred to the child upon reaching adulthood.

Also Read | Union Budget 2024: Old vs New Income Tax Slabs, Key Changes in New Regime.

Foreign Direct Investment and Industry Support

12. FDI Simplification: Rules and recognition for Foreign Direct Investments (FDIs) will be simplified to facilitate their inflow, with an emphasis on using the Rupee for overseas investments.

13. Duty on PCBAs: Duty on printed circuit board assemblies (PCBA) for specific telecom equipment will be increased from 10% to 15%.

Exemptions and Duty Reductions

14. Medicines for Cancer: Three more medicines for cancer treatment will be exempted from customs duty.

15. Customs Duty on Precious Metals: Customs duty on gold and silver will be reduced to 6%, while platinum will be reduced to 6.4%.

16. Mobile Industry: Basic Customs Duty (BCD) on mobile phones, mobile PCDA (Printed Circuit Design Assembly), and mobile chargers will be reduced to 15%.

Rural Development and Infrastructure

17. Rural Development Allocation: Rs 2.66 lakh crore has been allocated for rural development, including rural infrastructure. Three crore additional houses will be constructed under the PM Awas Yojana in rural and urban areas.

18. PM Surya Ghar Muft Bijli Yojana: This initiative will install rooftop solar plants, providing free electricity up to 300 units per month to 1 crore households.

GST and IBC Improvements

19. GST Rationalization: The government will strive to rationalize the tax structure under GST to further enhance its benefits.

20. IBC Process: An integrated technology platform will be set up to improve outcomes under the Insolvency and Bankruptcy Code (IBC).

Tourism and Urban Development

21. Tourism Development: Support for the development of corridors at Vishnupad Temple and Mahabodhi Temple, and backing for the development of Nalanda in Bihar as a tourist center.

22. Urban Development: Transit-oriented development programs for 14 large cities with populations above 30 lakh will be formulated.

Employment and MSMEs

23. Job Creation: A comprehensive scheme will offer internships in top companies to one crore youth over five years.

24. Mudra Loans: The limit of Mudra loans will be increased to Rs 20 lakh from Rs 10 lakh for those who have availed and paid previous loans.

25. MSME Support: A credit guarantee scheme for MSMEs in the manufacturing sector will be introduced, along with facilitating term loans for the purchase of machinery.

Also Read | Budget 2024 Funny Memes and Jokes: X Flooded With Creative Images and Videos As FM Nirmala Sitharaman Announces Union Budget.

Women's Development

26. Women's Development: More than ₹3 lakh crore will be allocated for schemes benefiting women and girls. The government will set up hostels and create partnerships for women-specific skilling programs.

Financial Support for States

27. Support for Andhra Pradesh: The government will facilitate ₹15,000 crore for Andhra Pradesh, with additional amounts in future years.

28. Flood Assistance: Financial assistance will be provided for Sikkim, Assam, Uttarakhand, and Himachal Pradesh, states impacted by floods.

Agriculture and Energy Security

29. Agriculture Research: Comprehensive review of farm research setup to focus on developing climate-resilient crop varieties.

30. Energy Security: A policy document on energy transition pathways will be released, emphasizing employment and sustainability.

Special Initiatives

31. Space Economy: A Rs 1,000 crore venture capital fund for the space economy will be set up.

32. PM Gram Sadak Yojana: Phase 4 of this scheme will provide all-weather roads to 25,000 rural habitats.

Also Read | Budget 2024: Mudra Yojana Loan Limit Doubled to Rs 20 Lakh for Small Entrepreneurs.

Miscellaneous

33. Property Duties: States charging high stamp duty will be encouraged to moderate their rates, with further reductions for properties purchased by women considered.

34. Street Food Hubs: A scheme to develop 100 street food hubs in select cities over five years will be launched.

35. Rental Housing: Rental housing with dorm-like accommodation for industrial workers will be facilitated in PPP mode.

These announcements by Finance Minister Nirmala Sitharaman aim to provide a comprehensive support system across various sectors, promoting economic growth and development in the country.