Finance
In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman has announced a comprehensive review of the Income Tax Act. The FM has recommended easing taxation rules for people and companies. Presenting Modi 3.0 government’s first Budget 2024, Finance Minister Nirmala Sitharaman also stated that the government will provide a standard operating procedure (SOP) for TDS failures, as well as simplify and rationalize the compounding of such offenses.
“To simply taxation, we have taken a number of measures in the last few years,” Sitharaman further said. For the last fiscal, more than two-thirds have availed the new income tax regime, she added. FM Sitharaman also proposed raising the long-term capital gains to 12.5% from 10% in the Budget 2024-25. More than two-thirds of individuals availed of the new income tax regime, Sitharaman said in the Lok Sabha.
The FM also stated that DPI apps would be built for credit, e-commerce, education, health, legal, MSME service delivery, and urban government. The government has also proposed that the standard tax deduction be hiked from Rs 50,000 to Rs 75,000. Sithamaran also said the government has proposed to abolish angel tax to give boost to start-ups.
The income tax slabs for the financial year are structured as follows:
- For income up to Rs 3 lakh, there is no tax
- For income between Rs 3 lakh and Rs 5 lakh, the tax rate is 5%
- For income between Rs 7 lakh and Rs 10 lakh, the tax rate is 10%
- For income between Rs 10 lakh and Rs 12 lakh, the tax rate is 15%
- For income between Rs 12 lakh and Rs 15 lakh, the tax rate is 20%
- For income above Rs 15 lakh, the tax rate is 30%
The big Budget 2024 announcements: In a budget focused on growth, Sitharaman pledged major funding for centrally sponsored schemes such as MGNREGS, PM Awas Yojana (Urban), and Jal Jeevan Mission. at addition, Sitharaman stated that the government will provide financial assistance for loans of up to Rs 10 lakh for higher education at domestic institutions. She also stated that the government will offer 12-month internships to 1 crore students in the top 500 corporations over a five-year span. Customs duty on mobile phones, accessories, and chargers has been slashed to 15%, bringing prices down. The administration has also suggested lowering the basic customs tariff on gold and silver to 6%, and platinum to 6.4%.
In a budget focused on growth, Sitharaman pledged major funding for centrally sponsored schemes such as MGNREGS, PM Awas Yojana (Urban), and Jal Jeevan Mission. at addition, Sitharaman stated that the government will provide financial assistance for loans of up to Rs 10 lakh for higher education at domestic institutions. She also stated that the government will offer 12-month internships to 1 crore students in the top 500 corporations over a five-year span. Customs duty on mobile phones, accessories, and chargers has been slashed to 15%, bringing prices down. The administration has also suggested lowering the basic customs tariff on gold and silver to 6%, and platinum to 6.4%.
Sitharaman’s speech also addressed development in Bihar and Andhra Pradesh. Sitharaman stated that the Union government will provide financial help to Bihar through aid from international development agencies. The Vishnupad temple in Gaya and the Mahabodhi temple in Bodhgaya will be connected by corridors similar to those seen at the Kashi Vishwanath temple. Rajgir and Nalanda will be transformed into tourism hubs. Furthermore, the Centre would create a ‘Purvodaya’ plan for the overall development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Meanwhile, Rs 15,000 crore has been allotted for the development of Amaravati, Andhra Pradesh’s capital.
