Budget 2024 presented a roadmap for India's development. It focused on boosting economic growth, creating jobs, and improving the lives of citizens. Key highlights include increased capital expenditure, tax benefits for individuals and businesses, and emphasis on agriculture, infrastructure, and technology.
Enhanced Deduction for Family Pension
If you receive a family pension, you can now claim a higher deduction. Previously, you could deduct 1/3rd of the pension amount, up to a maximum of ₹15,000. This limit has been increased to ₹25,000, but only if you opt for the New Tax Regime. While this is a welcome change, it may not significantly influence your decision between the Old and New Tax Regime.
Higher Standard Deduction for Salaried Employees
Salaried and retired individuals can claim a standard deduction of ₹50,000 against their taxable salary or pensions under both tax regimes. However, if you choose the New Tax Regime, this deduction increases to ₹75,000. For those sticking with the Old Tax Regime, the deduction remains ₹50,000.
Better Deduction for Employer's Contribution to NPS
Currently, your employer’s contribution to your NPS (National Pension System) is added to your income and then deducted under Section 80CCD(2). Central Government employees can claim up to 14% of their salary, while others can only claim up to 10%. To make the New Tax Regime more appealing, the limit for non-government employees has been raised to 14%. However, the overall limit of ₹7.5 lakh for employer contributions to NPS, Provident Fund, and superannuation remains unchanged.
Revised Tax Slabs
Vikshit Bharat: Nine Priorities
The government has outlined nine priorities for a developed India, focusing on:
Productivity and resilience in agriculture
Employment and skill development
Inclusive human resource development and social justice
Manufacturing and services growth
Urban development
Energy security and transition
Infrastructure
Next-generation reforms
Innovation and research
Agriculture Initiatives
Release of 109 high-yielding and climate-resilient crop varieties
1 crore farmers to adopt natural farming in the next two years
10,000 bio-input resource centers planned for natural farming
Taxation Changes
Indexation removed for calculating capital gains on property sales.
Long Term Capital Gain exemption limit raised to ₹1.25 lakh for certain assets.
Long Term Capital Gain tax set at 12.5%, Short Term Capital Gain at 20% for certain assets.
Angel Tax abolished, corporate tax for foreign companies reduced to 35%.
Buy-back income to be taxed in the recipient’s hands.
TDS on mutual fund or UTI repurchase units withdrawn.
STT on F&O of securities increased to 0.02% and 0.1%, respectively.
Merged 5% TDS rates to 2%.
Increased NPS employer contribution deduction to 14% of salary.
Reduced customs duty on mobile phones, chargers, and PCBA to 15%.
Reduced customs duty on gold and silver to 6%, platinum to 6.4%.
Infrastructure Development
₹11.11 lakh crore allocated for capital expenditure (3.4% of GDP)
₹1.5 lakh crore for interest-free loans to states
PMGSY Phase IV to connect 25,000 rural habitations
Boosting Manufacturing
Credit Guarantee Scheme for MSMEs with a cover up to ₹100 crore
Mudra loan limit raised from ₹10 lakh to ₹20 lakh for small businesses
Halved turnover threshold for TReDS platform onboarding
Support for 50 multi-product food irradiation units in the MSME sector
E-commerce export hubs for MSMEs and artisans
24 new SIDBI branches in MSME clusters
New credit assessment model by PSBs for MSMEs
Energy Sector Updates
New policy for promoting pumped storage projects for electricity
Partnership for Bharat Small Reactors and Small Modular Reactor R&D
NTPC-BHEL JV for 800 MW thermal power plant with AUSC technology
Transition roadmap from energy efficiency to emission targets
Regulations for the Indian Carbon Market
Research & Innovation
Operationalize Anusandhan National Research Fund
₹1 lakh crore financing pool for private sector research
₹1,000 crore Venture Capital Fund to expand the space economy
Urban Development Plans
Developing cities as growth hubs through economic and transit planning
Transit Oriented Development in 14 large cities
Framework for brownfield redevelopment of existing cities
₹10 lakh crore investment for housing 1 crore urban poor and middle-class families
Projects for water supply, sewage treatment, and solid waste management in 100 cities
Encouragement for states to lower stamp duties
Budget 2024 aims to position India as a global economic powerhouse. With a strong emphasis on infrastructure, agriculture, and technology, the budget seeks to create a prosperous India. While the long-term impact remains to be seen, the initial steps taken are promising. It's essential to monitor the implementation of these policies closely to assess their effectiveness in improving the lives of citizens.
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