Union Budget 2024: What is there for the common man

Today, the Indian government presented the Union Budget for the fiscal year 2024-25, with Finance Minister Nirmala Sitharaman outlining key allocations and policy measures. The budget focuses on infrastructure development with an allocation of ₹10 lakh crore, significant investment in healthcare and education, and tax relief measures for the middle class. Additionally, it emphasizes digital economy growth, green energy initiatives, and measures to enhance agricultural productivity. The budget aims to balance fiscal prudence with economic growth, targeting a fiscal deficit of 5.9% of GDP.

Tax

Tax slabs revised for the New Regime only as below.

Standard Deduction on New Tax Regime raised from ₹50,000 to ₹75,000. ₹17,500 saving. Deduction on family pension for pensioners increased from ₹15,000 to ₹25,000.

So, for a person earning more than 12 lakhs, without considering any deductions he had to pay a tax of ₹90,000/- excluding the ₹50,000/- deduction. But now, he will have to pay a tax of ₹76,000/- excluding the ₹75,000/- deduction.

Trading

The revision in tax slabs for the new regime is to attract the tax payers to the new regime. As per the new regime, as there are comparatively less rebate options, people invest in stocks and mutual funds to maximise returns. So, the finance ministry has played a smart move by revising the tax on capital gains.

• Short-term capital gains tax reduced to 20%.
• Long Term Capital Gains increased to 12.5% for some assets.
• Unlisted bonds, debentures to attract tax on capital gains.
• The exemption limit on capital gains has been increased to 1.25 lakhs
• STT on sale of an Option increased to 0.1% from 0.0625%, and on sale of a futures in securities from 0.01% to 0.02% of the price at which such futures are traded.

Real Estate

The budget has removed the indexation benefit available on sale of property. Property sellers will not be able to inflate their purchase price and reduce their capital gains. The long term capital gains tax on property sales has been reduced to 12.5% from 20%. This will keep a hold on the property prices and give a boost to the sale of properties and investment from the common man.

E-commerce

TDS on e-commerce cut to 0.1% from 1%. This will promote more small businesses to sell on E-commerce. More supplies will lead to a healthy competition and we can expect a slight drop in specific goods sold on E-commerce.

NPS

Employer NPS deduction increased to 14%

Custom Duty

• Basic customs duty on gold and silver reduced to 6% and platinum to 6.4%.
• Basic customs duty reduced on ferronickel, blister copper; Duty Increasing to 15% from 10% on specified telecom equipment.
• Customs duty reduced on certain brood stocks, shrimps and fish feed to 5%.
• Customs duty raised on ammonium nitrate to 10% and 25% on non-biodegradable plastics.
• Customs duty reduced to 15% on Mobile phone, Mobile PCBA and charger
• Fully exempt custom duties on 25 critical minerals
• Custom duty hiked on plastic products

Gold and silver prices will be corrected because of the reduced duties which can attract more buyers. Mobile phones will be cheaper and will boost connectivity and Digital India campaign.

Startups

Angel tax to be abolished for all investor classes. This will give a boost to the start-ups in India. This can also lead to an increase in employment with better pay scales. It will definitely accelerate the Make-in-India movement.

Other Key Highlights

• Finance Minister Sitharaman announces a ₹2 lakh crore package for five schemes.
• ₹1.48 lakh crore allocated for education, employment, and skill development.
• PM Garib Kalyan Ann Yojna extended for five years, benefiting 80 crore people.
• 20 lakh youth to receive skill development training over five years.
• Financial support for loans up to ₹10 lakh for higher education.
• Government to launch three employment-linked schemes.
• Budget allocates ₹2.66 lakh crore for rural development.
• 100 branches of India Post Payments Bank to be established in the North East.
• Over ₹3 lakh crore allocated for schemes benefiting women and girls.
• Government to create an efficient and transparent rental housing market with increased availability.
• Finance Minister pledges to further simplify GST.
• New National Pension Scheme for Minors announced; government to launch ‘NPS Vatshalya’ for pension contributions by parents and guardians.