The Ministry of Finance, (MoF) on July 23, 2024, issued Budget 2024-2025.
The following has been stated-
•Dwelling on the Budget theme, Smt Sitharaman said, turning attention to the full year and beyond, in this budget, we particularly focus on employment, skilling, MSMEs, and the middle class. She announced 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 ₹2 lakh crore. This year, ₹1.48 lakh crore has been allocated for education, employment and skilling.
•The government of India focused on revising elements in the new tax regime while keeping the old one untouched. Here are the elements to look out for:
•Income tax slabs were tweaked
•Standard deduction for salaried employees was increased
•The limit on employee contribution to pension has been increased to 14% from 10%.
•Total tax savings under the new regime will amount to a maximum of ₹17,500.
•Tax rate structure in the new income Tax regime has been revised -
o₹0-3 lakh - Nil
o₹3-7 lakh - 5%
o₹7-10 lakh - 10%
o₹10-12 lakh - 15%
o₹12-15 lakh - 20%
oMore than ₹15 lakh - 30%
o Standard Deduction amount raised to ₹75,000
o> Capital Gains Tax
oShort term capital gain tax was revised to 20% while long-term capital gain tax raised to 12.5% on Financial assets
oSTT (Security Transaction Tax) on derivatives raised to 0.02%
• Agriculture:
o₹1 lakh crore allocated to support farmers and agricultural infrastructure.
oMeasures to promote organic farming, irrigation projects, and rural development.
oDirect benefit transfers and subsidies to support farmers' income.
• Digital India:
o₹50,000 crore allocated for digital infrastructure and technology initiatives.
oExpansion of broadband connectivity in rural areas.
oSupport for startups and innovation in technology sectors.
The 2024-25 budget aims to foster economic growth, enhance social welfare, and promote sustainable development, setting a comprehensive framework for India’s future progress.
