Finance Minister Nirmala Sitharaman commenced the presentation of her seventh consecutive Union Budget 2024-25 today, marking a historic milestone as the first finance minister to achieve this feat. Surpassing former Prime Minister Morarji Desai’s record of six consecutive budgets from 1959-64, Sitharaman’s Budget also marks the first comprehensive financial plan under the Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government’s third consecutive term.
The Union Budget, an annual financial statement from the central government, details proposed expenditures and revenues for the upcoming fiscal year (FY25) spanning April 1, 2024, to March 31, 2025. It highlights the government’s achievements from the past year and sets forth objectives and allocations for the year ahead, addressing policy needs and financial planning.
The Budget Session of Parliament commenced on July 22, with Sitharaman presenting the 2024 Economic Survey a day earlier. Scheduled for 16 sittings over 22 days, the session is anticipated to conclude on August 12.
23 July 2024, 12:34 PM IST
Finance Minister Nirmala Sitharaman concludes her speech
The Finance Minister presented the Finance Bill in the Lok Sabha. The Budget Session will resume on July 24 at 11 a.m.
23 July 2024, 12:33 PM IST
Standard deduction increased to ₹75,000 in new tax regime
The standard deduction under the new tax regime has been increased to ₹75,000 from the previous ₹50,000.
23 July 2024, 12:31 PM IST
Revised tax rates under the New Tax Regime
The revised tax rates under the New Tax Regime are as follows:
- ₹0-3 lakh: Nil
- ₹3-7 lakh: 5%
- ₹7-10 lakh: 10%
- ₹10-12 lakh: 15%
- ₹12-15 lakh: 20%
- Above ₹15 lakh: 30%
23 July 2024, 12:30 PM IST
Securities Transaction Tax on Futures and Options contracts to be increased
The Finance Minister announced an increase in the Securities Transaction Tax for Futures and Options contracts to 0.2% and 0.1%, respectively. Income from the buyback of shares will now be taxed in the hands of the recipient. Additionally, the tax deduction on NPS contributions will be raised from 10% to 14% of salary, covering both government employees and private sector employees participating in the NPS.
23 July 2024, 12:29 PM IST
Other major proposals in the Finance Bill
Other key proposals in the Finance Bill include the withdrawal of a 2% equalization levy, expansion of tax benefits for certain funds and entities in the International Financial Services Centre (IFSC), and modifications to the enforcement of the Benami Transactions Act.
23 July 2024, 12:27 PM IST
Capital gains taxation to be significantly simplified
The FM announced major simplifications to capital gains taxation. Short-term gains on certain financial assets will now be taxed at 20%, while gains on other assets will remain subject to current rates. To benefit lower and middle-income classes, the exemption limit on some financial instruments for capital gains will be increased to ₹1.25 lakh per year. Additionally, unlisted bonds and debentures, debt mutual funds, and market-linked debentures will be taxed on capital gains regardless of the holding period.
23 July 2024, 12:26 PM IST
FM proposes to decriminalize delays in TDS payments and reduce the TDS rate for e-commerce operators
The Finance Minister announced a reduction in the TDS rate on e-commerce operators from 1% to 0.1%. She also proposed decriminalizing delays in TDS payments up to their filing due date. Additionally, the process for reassessment and reopening of returns will be simplified, with such actions limited to cases involving ₹50 lakh or more and a time frame of six years, rather than the current period.
23 July 2024, 12:24 PM IST
The budget proposes review of the Income Tax Act of 1961 in six months
The Finance Minister announced that 58% of corporate tax revenue in 2022-23 came from the simplified tax regime, and more than two-thirds of taxpayers opted for the new personal tax regime last year. To reduce litigation, a review of the Income Tax Act of 1961 will be undertaken within six months. The Finance Bill will initiate this process by easing the tax regime for charities, proposing to merge two existing tax exemption regimes into one.
23 Jul 2024, 12:23 PM IST
Customs duty cut on gold and silver
FM Nirmala Sitharaman announced a reduction in customs duties on gold and silver from 10% to 6%. For precious metals, the duties will be reduced to 6% for gold, 6% for silver, and 6.5% for platinum.
23 July 2024, 12:21 PM IST
Angel Tax for investors abolished
To support the Indian startup ecosystem, the Finance Minister announced the abolition of the Angel Tax for all classes of investors.
23 July 2024, 12:03 PM IST
Modi 3.0 to retain infrastructure spending same as interim budget Infrastructure spending is maintained at ₹11.1 trillion, the same as in the interim budget, representing 3.4% of GDP. The allocation for interest-free loans to states for infrastructure spending has increased to ₹1.5 trillion. States will be encouraged to invest more in infrastructure.
23 July 2024, 11:58 AM IST
ICRA’s Budget Views
- Road Connectivity and Infrastructure: The focus on enhancing road connectivity in the Eastern region and infrastructure development is seen as a positive boost for commercial vehicle (CV) demand.
- Housing Initiatives: The emphasis on PMAY, with an additional 3 crore houses planned, is beneficial for the cement sector. Continued support for the PM Awas Yojana is favourable for affordable housing.
- Support for Women-Led Units: Increased support for women-led units is expected to drive demand for microfinance loans.
- MSME Support: The credit guarantee scheme for MSMEs is anticipated to bolster credit demand and improve asset quality for lenders.
23 July 2024, 11:56 AM IST
Centre Allocates ₹2 Lakh Crore for Urban Housing
The Centre has announced an aid of ₹2 lakh crore to support urban housing under the PMAY Urban Housing 2.0 initiative. With a total budget of ₹10 lakh crore, this program aims to address the housing needs of the urban population, offering subsidized rates for housing projects.
23 July 2024, 11:54 AM IST
FY25 capex unchanged from interim budget at ₹11.1 lakh crore
India FY25 Capex spend seen at ₹11.1 lakh crore — unchanged from Interim Budget, infrastructure spend at 3.4% of GDP
23 Jul 2024, 11:49 AM IST
IBC to remain in focus, says FM Sitharaman
The Finance Minister announced the establishment of an integrated tech platform to enhance outcomes under the Insolvency and Bankruptcy Code (IBC). This platform aims to provide greater consistency, transparency, and improved oversight for all stakeholders, including the National Company Law Tribunal (NCLT). The IBC has successfully resolved over 1,000 companies, resulting in a direct recovery of ₹3.3 lakh crore for creditors. Additionally, 28,000 cases involving more than ₹10 lakh crore have been resolved before admission.
23 July 2024, 11:46 AM IST
MUDRA loan limit to be increased to ₹20 lakh
Budget 2024 Live: The Finance Minister announced that the MUDRA loan limit will be raised from the current ₹10 lahks to ₹20 lahks for borrowers who have previously availed and successfully repaid loans under the TARUN category.
23 July 2024, 11:44 AM IST
The government has announced a credit guarantee scheme for MSMEs and a higher limit for Mudra loans for those who have repaid previous loans. Banks will also be encouraged to assess MSME eligibility based on their digital footprint to aid sector development. As the MSME sector was one of the hardest hit by COVID-19, these state-backed loans aim to make banks more comfortable in lending to them.
23 July 2024, 11:39 AM IST
Finance Minister Nirmala Sitharaman announced that the credit support for MSMEs will be strengthened by raising the Mudra loan limit from ₹10 lakh to ₹20 lakh for those who have previously availed and successfully repaid loans under the Tarun category.
23 July 2024, 11:39 AM IST
FM Sitharaman on Credit Guarantee Scheme for MSMEs
Finance Minister Nirmala Sitharaman announced, “To facilitate term loans for MSMEs, a credit guarantee scheme will be introduced. This scheme will focus on mitigating the credit risks of MSMEs. A self-financing guarantee fund will provide coverage of up to ₹100 crore to each applicant, though the loan amount may be larger.”
23 July 2024, 11:32 AM IST
FM Sitharaman on Direct Benefit Transfer of ₹15,000 for New Workers
Finance Minister Nirmala Sitharaman announced, “…One month’s wage will be provided to all individuals newly entering the workforce in all formal sectors. A Direct Benefit Transfer of one month’s salary, in three instalments, will be given to first-time employees registered with the EPFO, up to ₹15,000. The eligibility limit is set at a salary of ₹1 lakh per month. This scheme will benefit 210 lakh youth.”
23 July 2024, 11:19 AM IST
Union Finance Minister Nirmala Sitharaman stated, “As outlined in the interim Budget, our focus must be on four distinct groups: the poor, women, youth, and farmers. For farmers, we have announced higher Minimum Support Prices for all major crops, fulfilling the promise of at least a 50% margin over cost. Additionally, the PM Garib Kalyan Anna Yojana has been extended for five years, benefiting over 80 crore people.”
23 Jul 2024, 11:12 AM IST
Budget 2024 Outlining Live: Nine Priorities Outlined, Building on Interim Budget Goals
- Enhancing agricultural productivity and resilience
- Expanding employment opportunities and skill development
- Promoting inclusive human resource development and social justice
- Strengthening manufacturing and services sectors
- Advancing urban development initiatives
- Ensuring energy security
- Improving infrastructure
- Fostering innovation and research & development
- Implementing next-generation reforms
23 July 2024, 11:05 AM IST
Finance Minister Sitharaman highlights five key areas for this year’s budget: Jobs, skill development, support for small businesses, and focus on the middle class.
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