Income Tax Revisions
One of the most notable changes is the increase in the standard deduction for salaried employees from 50,000 to ₹75,000. This move is set to provide relief to many taxpayers. Additionally, the new tax regime offers tax-free earnings up to 3 lakh, with revised tax slabs making it easier for individuals to save on taxes. The updated slabs are as follows:
- Up to ₹3 lakh: Nil
- ₹3 lakh to ₹7 lakh: 5%
- ₹7 lakh to ₹10 lakh: 10%
- ₹10 lakh to ₹12 lakh: 15%
- ₹12 lakh to ₹15 lakh: 20%
- Above ₹15 lakh: 30%
These adjustments aim to reduce the tax burden on individuals and encourage higher savings.
Capital Gains Tax Simplification
The budget introduces changes to the capital gains tax structure:
- Short-term capital gains on certain financial assets will now be taxed at 20%.
- Long-term capital gains on these assets will attract a 12.5% tax.
- Exemptions on capital gains tax up to ₹1.25 lakh will be available for specific assets.
The tax rate on unlisted bonds, debentures, and debt mutual funds will be applicable irrespective of the holding period. This revision is expected to make tax compliance simpler and more transparent.
Customs Duty Adjustments
The finance minister has proposed reduction in custom duties on various items:
- Duties on mobile phones and chargers have been cut to 15%.
- Customs duties on gold and silver were reduced to 6%, and platinum to 6.4%.
- Exemptions for specific capital goods used in solar panel manufacturing and other essential items.
These reductions are designed to lower costs for consumers and support sectors relying on imported materials.
Industrial Parks and Development Initiatives
To stimulate foreign investment and industrial growth, the budget outlines plans to develop industrial parks in around 100 Tier II and Tier III cities. This initiative aims to enhance Foreign Direct Investment (FDI) and improve infrastructure. Additionally, ₹2.66 lakh crore has been allocated for rural infrastructure, and a new scheme to support Micro, Small, and Medium Enterprises (MSMEs) with ₹2 lakh crore in funding and increased Mudra Loan limits has been announced.
Housing and Infrastructure Development
A substantial allocation of ₹10 lakh crore is dedicated to the ‘Housing for All’ scheme, targeting affordable housing for urban poor and middle-class citizens. The budget also introduces a rental housing scheme for industrial workers, addressing the needs of the working class.
Special Funding for Key States
The budget proposes special financial assistance for Andhra Pradesh and Bihar, with funds directed toward infrastructure projects such as roads, airports, and power projects. This targeted support aims to boost regional development and economic growth.
Tourism and Space Industry Investments
In a bid to enhance tourism and space exploration, the budget includes:
- Funding for the development of temples and tourist centres in Bihar and Odisha.
- A ₹1,000 crore venture capital fund for the space industry to foster innovation and growth.
Conclusion
The Union Budget 2024 presents a comprehensive set of measures designed to enhance economic stability, support various sectors, and improve infrastructure. With a focus on tax relief, capital gains simplification, and strategic investments, these changes are expected to positively impact both individuals and businesses across India.
