Union Budget 2024 Highlights: Tax Rate Structure revised, Know What's Cheaper and What's Expensive

Union Budget 2024 Live Updates: Nirmala Sitharaman presents 7th budget in row

Union Budget 2024-25: Major change in income tax structure.

Union Budget 2024 for Agriculture, Education, Sports, Health, Tax Slab and Industry by Nirmala Sitharaman Highlights: The Union Finance Minister Nirmala Sitharaman on Tuesday presented her 7th consecutive Union Budget on Tuesday. Notably, the Union Budget was the first full financial budget of Prime Minister Narendra Modi-led NDA government in its third successive term.

The key highlight of the Union Budget 2024-25 was the changes in the income tax structure.

Union Budget 2024 by Nirmala Sitharaman Highlights:

12:17 PM | During her Budget speech, FM Sitharaman says, "I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months."

12:34 PM | INCOME TAX ANNOUNCEMENTS:

On personal income tax rates in the new tax regime, FM Sitharaman says, "Under new tax regime, tax rate structure to be revised as follows - Rs 0-Rs 3 lakh -Nil; Rs 3-7 lakh -5%; Rs 7-10 lakh-10%; Rs 10-12 lakh-15%; 12-15 lakh- 20% and above Rs 15 lakh-30%."
58 pc of corporate tax came from a simplified tax regime in FY23. More than two-thirds of individuals availed new tax regime: FM.
Govt to undertake comprehensive review of Income Tax Act to make it easy to read, says FM.
Two tax exemption regimes for charitable trusts to be merged into one, says finance minister.
Govt to come out with SoP for TDS default and simplify and rationalise compounding of such offences, says FM.
Govt proposes reduction in TDS rate on e-commerce from 1 pc to 0.1 pc: FM.
Reopening of I-T assessment after 3 years only in cases where escaped income is Rs 50 lakh and above
Listed financial instruments held beyond 1 year to be considered long term as part of simplification of capital gain
Long term gains on financial and non-financial assets will attract tax rate of 12.5 pc
Govt abolishes Angel tax for all classes of investors in startups
Govt proposes Vivad Se Vishwas Scheme 2024 to reduce tax litigation
Govt proposes raising capital gains exemption limit on certain financial assets to Rs 1.25 lakh per year for middle and upper middle class
Govt proposes raising capital gains exemption limit on certain financial assets to Rs 1.25 lakh per year for middle and upper middle class
STT on F&O of securities hiked 0.02 pc and 0.1 pc, income receipt on share buy back to be taxed in the hands of recipients
Rs 10 lakh crore proposed for PM Awas Yojana - Urban 2.0 to address housing needs of 1 crore urban poor, middle class
Standard Deduction for salaried employees hiked to Rs 75,000, from Rs 50,000 under new income tax regime in FY25: FM.
Govt withdraws equalisation levy of 2 pc

12:15 PM | What's Cheaper and What's Expensive?

Govt reduces basic customs duty on shrimp to 5 per cent: FM in Lok Sabha.
Govt exempts customs duty on 25 critical minerals, says FM
Govt proposes reduction in basic customs duty on certain brood stocks, shrimps and fish feed to 5pc: FM.
Govt removes Basic Customs Duty on ferro nickle, blister copper
Govt proposes basic custom duty reduction on gold and silver to 6pc; platinum to 6.4pc
Govt increases basic customs duty to 15 pc from 10 pc on specified telecom equipment, says FM.
Govt to raise customs duty on ammonium nitrate to 10 pc; 25 pc on non-biodegradable plastics, says finance minister.
On Mobile phone industry, FM Sitharaman says, "I propose to reduce the BCD on mobile phones and mobile PCBS and mobile chargers to 15%."
On precious metals, FM Sitharaman says, "I propose to reduce customs duties on gold and silver to 6% and 6.5% on platinum."
Union Finance Minister Nirmala Sitharaman says "Three cancer treatment medicines to be exempt from basic customs duty..."
On TCS & TDS, FM Sitharaman says," TDS rate on e-commerce operators reduced from 1% to 0.1%"
Gross and net market borrowing pegged at Rs 14.01 lakh crore and Rs 11.63 lakh crore in FY25
Fiscal deficit is estimated at 4.9 per cent of GDP
Net tax receipts estimated at Rs 25.83 lakh crore in FY25
Government aims to reach 4.5 per cent fiscal deficit in 2025-26
Total receipts estimated at Rs 32.07 lakh crore, expenditure at Rs 48. 21 lakh crore in FY25
GST has decreased tax incidence on common man, reduced logistic cost for industry, it is a success of vast proportion

12:14 PM | Announcements So Far:

Govt will provide assistance to HP, Uttarakhand, Sikkim suffered due to natural disaster
Govt to hold consultation with states on land reforms; to cover land administration & planning and building bylaws
Land record in urban areas to be digitised, help improve finances of urban bodies
Andhra Pradesh to get funds to promote industrial development for essential infra like water, power, railways, roads
Govt will revamp Shram Suvidha Portal to enhance compliance for industry and trade
Government will develop taxonomy for climate finance
Rules for FDI and overseas investment will be simplified, including nudging privatisation, using Indian rupee for overseas investment
Govt will bring out 5-year vision document for meeting financial needs of economy
Government will step up adoption of technology on digitisation of economy

12:10 PM | Announcements So Far:

Govt will provide support under Accelerated Irrigation Programme and other sources for projects with an estimated cost of Rs 11,500 crore
FM proposes to support development of corridors at Vishnupad Temple and Mahabodhi Temple in line with Kashi Vishwanath Temple.
Govt to come out with economic policy framework to usher in next generation reforms to boost economic growth
Govt to support development of Nalanda in Bihar as tourist centre
Govt to operationalise Anusandhan National research fund
Govt to provide assistance to Odisha for development of tourism
Govt to provide Rs 11,500 crore to Bihar for flood mitigation
Street food hub to be set up in select cities
Govt to provide assistance to Assam for flood management and related projects
Finance Minister proposes Rs 1.5 lakh cr long-term interest-free loans to support states towards infra development.
Govt will launch Phase IV of PM Gram Sadak Yojana in 25 rural habitations, which have become eligible due to population increase
Power projects, including setting up a new 2400 MW power plant at Pirpainti in Bihar, will be taken up at a cost of Rs 21,400 crore
Private sector investment in infrastructure to be facilitated via Viability Gap Funding
Govt to maintain strong fiscal support for infra projects for next 5 year
Government provides Rs 11.11 lakh crore towards capex for FY25
Govt to facilitate investment grade energy audit of micro and small industries in 60 clusters
NTPC and BHEL in JV to set up 800 MW super critical thermal power with higher efficiency
PM Surya Ghar Muft Bijli Yojana generated remarkable response with 1.8 crore people registering under it
Policy to support pump storage projects will be brought to provide round the clock energy, says finance minister.
FM proposes central assistance of Rs 2.2 lakh crore for urban housing over next five years.
Govt to come out with a document on energy transition pathway
Govt to launch scheme to support development of 100 weekly haats in 5 years

11:59 AM | Finance Minister Nirmala Sitharaman says, "The government endeavours to maintain strong fiscal support for infrastructure over the next 5 years. Capital expenditure to be Rs 11,11 lakh crore at 3.4% of our GDP."

11:55 AM | Announcements So Far:

Govt will reduce the turnover threshold of MSME buyers for mandatory onboarding on TReds platform from Rs 500 cr to Rs 250 cr
Govt to launch scheme to provide internship opportunities to 1 crore youth in 500 top companies over 5 years
Rs 20,000 crore to be allocated for highways in Bihar
Govt to promote investment-ready industrial parks in 100 cities
Govt will facilitate dormitory-type rental housing for industrial workers in PPP mode
Govt to launch auction of first offshore mining blocks
Govt to set up Critical Mineral Mission to acquire asset overseas
FM proposes integrated technology platform for improving outcomes under Insolvency and Bankruptcy Code.
Govt proposes development of digital public infra application for productivity gains, biz opportunities and innovation by private sector
IBC has resolved more than 1,000 cases resulting in realisation of Rs 3.3 lakh cr to creditors
Additional debt recovery tribunals to be set up
Appropriate changes will be made to IBC and steps will be taken to strengthen tribunals
Govt will develop digital public infra application in 7 areas, including credit, MSME service delivery
FM proposes transit-oriented development plans for large cities having population of over 30 lakh.
Govt will put in place efficient and transparent rental housing market with enhanced availability.
Govt to come out with interest subsidy scheme to facilitate loans at affordable rates for urban housing

11:50 AM | On the free solar electricity scheme, Finance Minister Nirmala Sitharaman says, "PM Suryaghar Muft Bijli Yojana has been launched to install rooftop solar panels to enable 1 crore households to obtain free electricity up to 300 units each month. This scheme will further encourage it."

11: 48 AM | "Urban Housing: Under the PM Awas Yojana-Urban 2.0, the housing needs of 1 crore poor and middle-class families will be addressed with an investment of Rs 10 lakh crores. This will include the central assistance of Rs 2.2 lakh crores in the next five years..." FM said.

11:44 AM | "The Government will launch a scheme to provide internship opportunities to 1 crore youth in 500 top companies with Rs 5000 per month as internship allowance and one-time assistance of Rs 6000," she said.

11:34 AM | "Scheme C - Support to Employers - this employer-focussed scheme will cover additional employment is all sectors. All additional employment within a salary of Rs 1 lakh per month will be counted. The government will reimburse to employers up to Rs 3000 per month for two years towards the EPFO contribution for each additional employee. The scheme is expected to incentivise additional employment of 50 lakh persons

11:31 AM | Finance Minister Nirmala Sitharaman's Announcements So Far:

Budget to focus on employment, skilling, MSME, and middle class
Budget for FY25 to provide Rs 1.48 lakh crore for education and employment and skill
The Budget's 9 priorities include productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms
In the next 2 years, one crore farmers will be initiated in natural farming
Large-scale vegetable production clusters would be promoted to increase production
Govt in partnership with states will promote digital public infra for agriculture
Govt will bring National Cooperation Policy for overall development
Government to strengthen production, storage and marketing of pulses
Fast-tracking growth of rural economy and employment opportunity will be policy goal
Govt will provide finance for shrimp farming and marketing
Jan Samarth-based Kisan Credit Card to be introduced in five states
Govt to launch three employment-linked schemes
Govt to provide incentive to 30 lakh youth entering job market by providing 1 month PF contribution
Govt to provide funds to private sector, domain experts & others for developing climate-resilient seeds
Govt to set up working women hostels to promote women participation in workforce
Govt will release new 109 high yielding, climate resilient seeds for 32 field and horticulture crops
New centrally-sponsored scheme for skilling in collaboration with states, industry; 20 lakh youth to be skilled over 5 years
Model skilling loan scheme will be revised to facilitate loans up to Rs 7.5 lakh
1,000 ITIs to be upgraded in hub and spoke model
Govt to provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions
Govt to provide e-vouchers directly to 1 lakh students every year with interest subvention of 3 per cent of loan amount
We will formulate plan Purvodaya for all round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh
We will support industrial corridor for development in eastern region
Govt proposes Rs 26,000 crore for various road projects in Bihar
Union government to arrange financial assistance to Bihar through aid from multilateral development agencies
Our govt is fully committed for completion and financing of Polavaram irrigation project
Backward region grant will be provided to 3 districts of Andhra Pradesh
Govt allocates over Rs 3 lakh crore for schemes benefiting women, girls
Govt to facilitate special financial support for development of capital city in Andhra Pradesh

11:23 AM | On Education loans, FM Sitharaman says, "Govt to provide financial support for loans up to Rs 10 lakhs for higher education in domestic institutions."

11:20 AM | 3 schemes announced for ‘Employment Linked Incentive’

Scheme A: First Timers
Scheme B: Job Creation in manufacturing
Scheme C: Support to employers

11:19 AM | Finance Minister Nirmala Sitharaman says,"This year the allocation for agriculture and allied sectors is Rs 1.52 lakh crore." 11:1

11:18 AM | "I am happy to announce the Prime Minister's package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over 5 years with a central outlay of Rs 2 lakh crores. This year we have made a provision of Rs 1.48 lakh crores for education, employment and skilling..."

11:17 AM | "India's economic growth continues to be the shining exception and will remain so in years ahead. India's inflation continues to be low and stable moving towards the 4% target..." she said.

11:15 AM | Union Finance Minister Nirmala Sitharaman says "As mentioned in the interim Budget, we need to focus on 4 different castes, the poor, women, youth and the farmer/ For farmers, we announced higher Minimum Support Prices for all major crops delivering on the promise for at least a 50% margin over cost. PM Garib Kalyan Anna Yojana was extended for 5 years benefitting more than 80 crore people."

11:13 AM | FM says, "The people of India have reposed their faith in the govt led by PM Modi and re-elected it for the historic third term..."

11:01 AM | Union Budget 2024 Live Updates: Nirmala Sitharaman presents 7th budget in row

10:41 AM | PM Modi arrives in Parliament, ahead of the presentation of the Union budget 2024 by Finance Minister Nirmala Sitharaman

10:17 AM | Budget copies arrive in Parliament, Finance Minister Nirmala Sitharaman to present the Union Budget today in Lok Sabha.

10:10 AM | Finance Minister Nirmala Sitharaman carrying the Budget tablet arrives at Parliament, to present the first Budget in the third term of PM Modi's Government.

9:45 AM | Finance Minister Nirmala Sitharaman meets President Droupadi Murmu ahead of Budget 2024 presentation.

9:36 AM | In last year's budget, LED TVs, Electronic Vehicles, Biogas products, toys, cycles, batteries, mobile phones, cameras, and diamond jewellery were made cheaper while cigarettes, Foreign Kitchen Chimneys, Gold, Platinum, imported products, and silver products were made expensive.

9:18 AM | Union Finance Minister Nirmala Sitharaman posed outside the Ministry with the Budget in her hand.

9:15 AM | Union Finance Minister Nirmala Sitharaman will present her seventh consecutive Union Budget on Tuesday.

9:00 AM | India is all set to get its budget for the financial year 2024-25.