Union Budget 2024-25 key highlights: Angel tax to be scraped

• Integrated platform to be set up under insolvency and bankruptcy board to benefit stakeholders
• IBC has recovered Rs 3.3. lakh crore for creditors, 28 cases worth Rs 10 lakh crore also dismissed
• Additional tribunals will be notified

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 in the parliament at 11 am today and has arrived at the parliament with the paperless Bahi-Khata, a practice first followed by the minister while presenting the Union budget for 2021-22. This will be the seventh time FM Sitharaman will be presenting the budget, inching past the record of former finance minister Morarji Desai, who had 5 full-fledged and 1 interim budget presentation to his credit.

President Draupadi Murmu had described this budget as historic, in terms of the reforms and announcements it will lay forth. Earlier in the day, the FM had met the president with a copy of the budget. The budget will set forth the tone for Modi's third tenure, and will be an important cornerstone for his vision for India's Amritkal, leading India towards becoming a developed nation, or Viksit Bharat.

Sitharaman will begin her budget speech at 11 am in the Lok Sabha. You can watch the presentation live on the official Youtube channels of the government. After her speech, all budget-related documents will be available at indiabudget.gov.in

FM Sitharaman tables Union Budget 2024-25

FM Sitharaman, "India's inflation continues to be low, stable, moving towards 4% target. We need to focus on Gareeb, Mahila, Yuva and Annadata (Poor, Women, Youth and Farmers). Budget to focus on employment, skilling, MSME and middle class. Allocations of Rs 1.48 lakh crore have been made for education and skilling in this budget".

Productivity and Resilience in Agriculture

• Aim to develop climate resilient crop varieties. Over next 2 years, 1 crore farmers will be initiated into natural farming through structural support. 10,000 need based bio-resource centers will be established.
• Financing for shrimp farming, processing and export will be facilitated through NABARD
• Rs 1.25 lakh crore set aside for agriculture and allied activities.

Employment and Skilling

• Scheme A: One month wage to all those entering the formal workforce across all sectors. The scheme is expected to benefit 210 lakh youngsters
• Job creation in manufacturing: Incentives given to both employee and employer in the first 4 years of the employment, basis their EPFO contribution.
• Support to employers: The govt. will reimburse Rs 3,000 per month for 2 years for each additional employee hired by employer. The scheme is expected to benefit 50 lakh people
• Establish working women hostels and creches to facilitate women participation in workforce

Infrastructure Development

• Bihar and Andhra Pradesh to receive additional monetary support in the current financial year. Development of new airports, roadways and sports infrastructure to be undertaken in Bihar.
• Grants for backward regions in Andhra Pradesh will be provided
• 3 crore additional houses in rural and urban India have been made under PM Aawas Yojana.
• Women led development schemes have received an allocation of over Rs 3 lakh crore.
• Credit support to MSMEs during stress periods
• SIDBI to open new branches in MSME clusters within 3 years and offer direct credit to them. 24 new branches to be opened this year, covering 168 MSME clusters
• To enable MSMEs and artisans to sell products in international markets, hubs to be set up under public-private partnership model.
• Encourage moderation of stamp duties, also consider lowering duties for properties purchased by women.
• Infra investment in economy to stand at 3.4% of GDP

Tourism

• Development of Vishnu Path, Mahabodhi temple corridor
• Support development of Nalanda as a tourist center
• Development of Orissa as a popular tourist destination.

Research, Innovation and New Gen reforms

• Expanding space economy by 5x in the next 10 years via a venture fund of Rs 1,000 crore
• Land management and urban planning to incentivised for timely completion
• Digitisation of terrestial maps will be undertaken
• Establishing land registry and linking to farmer registry as well
• E-shram portal to be integrated with other relevant portals for seamless services
• Shram Suvidha and Samadhan portal will be revamped to enhance ease of compliance

Investments
Introduction of NPS Vatsalya: Investments can be made on behalf of child. Once they turn 18, this can be converted into a normal NPS account.

Budget Estimates 2024-25
Total receipts (sans borrowings) Rs 32.07 lakh crore
Tax receipts; Rs 25.83 lakh crore
Fiscal deficit at 4.9% of GDP

Solar Energy
Increase in list of exempted capital goods used for manufacturing solar products
No extension in exemption of custom duty for foreign products used for solar manufacturing

Income Tax
A comprehensive review of the Income Tax Act, of 1961 is in order
Merger of two exemptions for charities of donations
TDS rate on e-commerce operations to reduce to 0.1%
Provisions for reassessment to be simplified.

Also read: Budget 2024-25: Changes to tax slabs, increased standard deduction and other changes to direct taxation

Simplification of capital gains
STCG on specified financial assets to be at 20%
Other financial and non-financial assets to be taxed at applicable rates
Long term capital Gains on financial and non-financial assets to be at 12.5%
Annual limit on exemption raised from Rs 1,00,000 Rs 1,25,000
Listed financial assets will be considered long-term if held for more than 12 months.

Other taxation highlights
Angel Tax to be scraped away
Simpler tax regime for foreign shipping companies
Security transaction rates on trading in future and options to be increased
Standard deduction to increase to Rs 75,000 from Rs 50,000 under new tax regime
Deduction for pensioners enhanced from Rs 15,ooo to Rs 25,000
Tax slabs under new regime revised. Employee can save up to Rs 17,500 in income taxes annually.
Total revenue foregone is about Rs 8 lakh crore.