Finance Minister Nirmala Sitharaman’s mega jobs, tax announcements in Union Budget

• Chennaivision


• 23 Jul 2024

Finance Minister Nirmala Sitharaman presented first budget under Modi 3.0 government on Tuesday, July 23.

Sitharaman introduced increased standard deduction and revised tax rates for salaried individuals under the new tax regime. Besides this, cut on customs duty on gold, silver, mobile phones and other goods were announced.

The Centre’s FY25 Capex spend seen at ₹11.1 lakh crore — unchanged from Interim Budget, and infrastructure spend at 3.4% of GDP.

The Budget for 2024-25 is the action plan for the Modi 3.0 government to outline a roadmap towards India’s development in the next five years.

Prime Minister Narendra Modi praised the Union Budget presented by Nirmala Sitharaman. He said the Budget 2024 will benefit all sections of society and lay the foundation for a developed India.

Sitharaman outlined plans to increase spending, generate jobs, and offer middle-class relief, with extensive job creation expected over the next five years and significant changes in tax brackets and rates.

New schemes for promoting agriculture and major road and expressway projects for Bihar and Andhra Pradesh were also announced.

Revision in tax slabs under the new tax regime:

• The tax structure will be revised, saving taxpayers Rs 17,500

• New tax rates are as follows:

0-3 lakh: Zero tax

3-7 lakh: 5 per cent

7-10 lakh: 10 per cent

10-12 lakh: 15 per cent

12-15 lakh: 20 per cent

15 lakh & above: 30 per cent

• Standard Deduction on New Tax Regime increased from Rs 30,000 to Rs 75,000.

Changes in capital gains taxes:

Short-term gains tax on specified financial assets increased from 15 per cent to 20 per cent; rates on other financial and non-financial assets remain unchanged

Long-term gains tax on all assets raised to 12.5 per cent from earlier 10 per cent

Exemption limit on capital gains for certain listed financial assets increased from Rs 1 lakh to Rs 1.25 lakh annually

Long-term classification for listed financial assets is over one year; for unlisted and non-financial assets, it’s over two years

Unlisted bonds, debentures, debt mutual funds, and market-linked debentures will attract applicable capital gains tax rates, regardless of holding period

The Budget proposed to abolish ‘angel tax’ for all investor classes to support start-ups and innovation.

FY25 Fiscal deficit projected at 4.9 per cent of GDP:

• FY25 fiscal deficit projected at 4.9 per cent of GDP, down from 5.1 per cent in the Interim Budget

• Commitment to reduce the deficit below 4.5 per cent next year

• Expenditure for FY25 projected at Rs 48.21 trillion

• Receipts for FY25 projected at Rs 32.07 trillion.

Customs duty reductions:

Gold and silver duties reduced to 6 per cent, platinum to 6.4 per cent

Lithium, Copper, Cobalt exempt from Custom Duty

Expanded list of exempted capital goods for solar cell and panel manufacturing.

Basic Customs Duty on spandex yarn reduced from 7.5 per cent to 5 per cent

Exempt customs duty on manufacturing of connectors and Oxygen-fused copper.

Duty cuts on medicines and mobile phones: 

• Customs duty fully exempted on three additional cancer medicines

• Duty on mobile devices and accessories reduced to 15 per cent

• Increased customs duty on plastic products.

Budget allocations for Andhra Pradesh and Bihar

• Social and infrastructure funds announced for Andhra Pradesh, with a backward region grant for three districts

• Package for Vizag-Chennai Industrial corridor

• Rs 15,000 crore financial assistance for Amaravati’s development with promises for future funding

• Rs 26,000 crore for roads and expressways in Bihar

• Funds allocated for temple development in Bihar and Odisha.

Other essential Budget announcements

100 new branches of India Post Payments Bank to be established in the North East

Twelve new industrial parks to be created

Rs 10 trillion allocated for providing 1 crore houses to the urban poor and middle class

FM Sitharaman announces a critical mineral mission and the auction of the first offshore mining blocks.

Rental housing scheme for industrial workers in PPP mode

Mudra loan limit increased from Rs 10 lakh to Rs 20 lakh for those who successfully repaid loans under the TARUN category

Three new employment-linked schemes proposed with Rs 2 trillion allocation for job creation over five years, targeting skills for 20 lakh youth and increased women’s participation

Rs 1.52 trillion allocated for agriculture and allied sectors