INDIAN UNION BUDGET 2024-25 HIGHLIGHTS
Recently Indian government presented Indian budget 2024. we will discuss Indian budget
2024 highlights, Budget 2024 Impact on Taxes, Indian Budget 2024
Sector-wise Analysis, Indian Budget 2024 Government Schemes , Indian Budget
2024 for Middle Class, Indian Budget 2024 Economic Impact, Budget 2024
India Investment Opportunities, Indian Budget 2024 Changes in GST, Budget 2024
India Predictions, Budget 2024 India Reactions.
The minister of Finance and Corporate Affairs Smt. Nirmala
Sitharaman presented the Union Budget 2024-25 in Parliament . The
Indian budget 2024-2025 highlights are as follows:
Source-PIB(PRESS INFORMATION BUREAU
Budget
Estimates 2024-25:
following are the budget estimates for financial year
2024-2025:
1.
Total receipts other than borrowings: 32.07 lakh
crore.
2.
Total expenditure: 48.21 lakh crore.
3.
Net tax receipt: 25.83 lakh crore.
4.
Fiscal deficit: 4.9 per cent of GDP.
- Government
aims to reach a deficit below 4.5 per cent next year.
- Inflation
continues to be low, stable and moving towards the 4% target; Core
inflation (non-food, non-fuel) at 3.1%.
- The
focus of budget is on EMPLOYMENT, SKILLING, MSMEs, and the MIDDLE
CLASS.
Indian Budget 2024 Government Schemes
Package of PM’s five schemes for Employment and Skilling
- Prime
Minister’s Package of 5 Schemes and Initiatives for employment, skilling
and other opportunities for 4.1 crore youth over a 5-year period.
- Scheme A - First Timers: One-month
salary of up to 15,000 to be provided in 3 installments to first-time
employees, as registered in the EPFO.
- Scheme B - Job Creation in
manufacturing: Incentive to be provided at
specified scale directly, both employee and employer, with respect to
their EPFO contribution in the first 4 years of employment.
- Scheme C - Support to employers: Government
to reimburse up to 3,000 per month for 2 years towards EPFO contribution
of employers, for each additional employee.
- New centrally sponsored scheme
for Skilling
- 20
lakh youth to be skilled over a 5-year period.
- 1,000
Industrial Training Institutes to be upgraded in hub and spoke
arrangements.
- New Scheme for Internship
in 500 Top Companies to 1 crore youth
in 5 years
Nine
Budget Priorities in pursuit of ‘Viksit Bharat’:
Following are the nine priorities set by the government of
india in Indian union budget 2024 in the pursuit of viksit bharat:
- Productivity
and resilience in Agriculture
- Employment
& Skilling
- Inclusive
Human Resource Development and Social Justice
- Manufacturing
& Services
- Urban
Development
- Energy
Security
- Infrastructure
- Innovation,
Research & Development and
- Next
Generation Reforms
Priority
1: Productivity and resilience in Agriculture
- Allocation
of 1.52 lakh crore for agriculture and allied sectors.
- New
109 high-yielding and climate-resilient varieties of 32 field and
horticulture crops to be released for cultivation by farmers.
- 1
crore farmers across the country to be initiated into natural farming,
with certification and branding in next 2 years.
- 10,000
need-based bio-input resource centres to be established for natural
farming.
- Digital
Public Infrastructure (DPI) for Agriculture to be implemented for coverage
of farmers and their lands in 3 years.
Priority
2: Employment & Skilling
- As
part of the Prime Minister’s package, 3 schemes for ‘Employment Linked
Incentive’ to be implemented - Scheme A - First Timers; Scheme B - Job
Creation in manufacturing; Scheme C - Support to employers.
- To
facilitate higher participation of women in the workforce,
- working
women hostels and crèches to be established with industrial collaboration
- women-specific
skilling programmes to be organized
- market
access for women SHG enterprises to be promoted
Skill
Development
- New
centrally sponsored scheme for Skilling under Prime Minister’s Package for
20 lakh youth over a 5-year period.
- Model
Skill Loan Scheme to be revised to facilitate loans up to
`7.5 lakh. - Financial
support for loans upto `10 lakh for higher education in domestic
institutions to be provided to youth who have not been eligible for any
benefit under government schemes and policies.
Priority
3: Inclusive Human Resource Development and Social Justice
Purvodaya
- Industrial
node at Gaya to be developed along the Amritsar-Kolkata Industrial
Corridor.
- Power
projects, including new 2400 MW power plant at Pirpainti, to be taken up
at a cost of `21,400 crore.
Andhra
Pradesh Reorganization Act
- Special
financial support through multilateral development agencies of `15,000
crore in the current financial year.
- Industrial
node at Kopparthy along Vishakhapatnam-Chennai Industrial Corridor and
at Orvakal along Hyderabad-Bengaluru Industrial Corridor.
Women-led
development
- Total
allocation of more than `3 lakh crore for schemes benefitting women and
girls.
Pradhan
Mantri Janjatiya Unnat Gram Abhiyan
- Socio-economic
development of tribal families in tribal-majority villages and
aspirational districts, covering 63,000 villages benefitting 5 crore
tribal people.
Bank
branches in North-Eastern Region
- 100
branches of India Post Payment Bank to be set up in the North East region.
Priority
4: Manufacturing & Services
Credit
Guarantee Scheme for MSMEs in the Manufacturing Sector
- A
credit guarantee scheme without collateral or third-party guarantee in
term loans to MSMEs for purchase of machinery and equipment.
Credit
Support to MSMEs during Stress Period
- New
mechanism to facilitate continuation of bank credit to MSMEs during their
stress period.
Mudra
Loans
- The
limit of Mudra loans under ‘Tarun’ category to be enhanced to `20 lakh
from `10 lakh for those who have successfully repaid previous loans.
Enhanced
scope for mandatory onboarding in TReDS
- Turnover
threshold of buyers for mandatory onboarding on the TReDS platform to be
reduced from `500 crore to `250 crore..
MSME
Units for Food Irradiation, Quality & Safety Testing
- Financial
support to set up 50 multi-product food irradiation units in the MSME
sector .
E-Commerce
Export Hubs
- E-Commerce
Export Hubs to be set up under public-private-partnership (PPP) mode for
MSMEs and traditional artisans to sell their products in international
markets.
Critical
Mineral Mission
- Critical
Mineral Mission to be set up for domestic production, recycling of
critical minerals, and overseas acquisition of critical mineral assets.
Offshore
mining of minerals
- Auction
of the first tranche of offshore blocks for mining, building on the
exploration already carried out.
Digital
Public Infrastructure (DPI) Applications
- Development
of DPI applications in the areas of credit, e-commerce, education, health,
law and justice, logistics, MSME, services delivery, and urban governance.
Priority
5: Urban Development
Transit
Oriented Development
- Formulation
of Transit Oriented Development plans and strategies to implement and
finance 14 large cities above 30 lakh population.
Urban
Housing
- Investment
of `10 lakh crore, including the central assistance of `2.2 lakh
crore in next 5 years, under PM Awas Yojana Urban 2.0 proposed to
address the , housing needs of 1 crore urban poor and middle-class
families.
Street
Markets
- New
scheme to support the development of 100 weekly ‘haats’ or street food
hubs every year for the next 5 years in select cities.
Priority
6: Energy Security
Energy
Transition
- Policy
document on ‘Energy Transition Pathways’ to balance the imperatives of
employment, growth and environmental sustainability to be brought out.
Pumped
Storage Policy
- Policy
for promoting pumped storage projects for electricity storage to be
brought out.
Research
and development of small and modular nuclear reactors
- Government
to partner with private sector for R&D of Bharat Small Modular Reactor
and newer technologies for nuclear energy, and to set up Bharat Small
Reactors.
Advanced
Ultra Super Critical Thermal Power Plants
- Joint
venture proposed between NTPC and BHEL to set up a full scale 800 MW
commercial plant using Advanced Ultra Super Critical (AUSC) technology.
Roadmap
for ‘hard to abate’ industries
- Appropriate
regulations for transition of ‘hard to abate’ industries from the current
‘Perform, Achieve and Trade’ mode to ‘Indian Carbon Market’ mode to be put
in place.
Priority
7: Infrastructure
Infrastructure
investment by Central Government
- `11,11,111
crore (3.4 % of GDP) to be provided for capital expenditure.
Infrastructure
investment by state governments
- Provision
of `1.5 lakh crore for long-term interest free loans to support states in
infrastructure investment.
Pradhan
Mantri Gram SadakYojana (PMGSY)
- Launch
of phase IV of PMGSY to provide all-weather connectivity to 25,000 rural
habitations.
Irrigation
and Flood Mitigation
- Financial
support of `11,500 crore to projects such as the Kosi-Mechi
intra-state link and other schemes in Bihar.
- Government
to provide assistance to Assam, Himachal Pradesh, Uttarakhand and Sikkim
for floods, landslides and other related projects.
Tourism
- Comprehensive
development of Vishnupad Temple Corridor, Mahabodhi Temple Corridor and
Rajgir.
- Assistance
for development of temples, monuments, craftsmanship, wildlife
sanctuaries, natural landscapes and pristine beaches of Odisha.
Priority
8: Innovation, Research & Development
- Anusandhan
National Research Fund for basic research and prototype development to be
operationalised.
- Financing
pool of `1 lakh crore for spurring private sector-driven research
and innovation at commercial scale.
Space
Economy
- Venture
capital fund of `1,000 crore to be set up for expanding the space
economy by 5 times in the next 10 years.
Priority
9: Next Generation Reforms
Rural
Land Related Actions
- Unique
Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands
- Digitization
of cadastral maps
- Survey
of map sub-divisions as per current ownership
- Establishment
of land registry
- Linking
to the farmers registry
Urban
Land Related Actions
- Land
records in urban areas to be digitized with GIS mapping.
Services
to Labour
- Integration
of e-shram portal with other portals to facilitate such one-stop solution.
- Open
architecture databases for the rapidly changing labour market, skill
requirements and available job roles.
- Mechanism
to connect job-aspirants with potential employers and skill providers.
NPS
Vatsalya
- NPS-Vatsalya
as a plan for contribution by parents and guardians for minors.
PART B
Source: pib (press information bureau , india)
Indirect
Taxes
GST:
following are the Indian Budget
2024 Changes in GST
- Buoyed
by GST’s success, tax structure to be simplified and rationalised to
expand GST to remaining sectors.
Sector
specific customs duty proposals
Medicines
and Medical Equipment
- Three
cancer drugs namely TrastuzumabDeruxtecan, Osimertinib and Durvalumab
fully exempted from custom duty.
- Changes
in Basic Customs Duty (BCD) on x-ray tubes & flat panel detectors for
use in medical x-ray machines under the Phased Manufacturing Programme.
Mobile
Phone and Related Parts
- BCD
on mobile phone, mobile Printed Circuit Board Assembly (PCBA) and mobile
charger reduced to 15 per cent.
Precious
Metals
- Customs
duties on gold and silver reduced to 6 per cent and that on platinum to
6.4 per cent.
Other
Metals
- BCD
removed on ferro nickel and blister copper.
- BCD
removed on ferrous scrap and nickel cathode.
- Concessional
BCD of 2.5 per cent on copper scrap.
Electronics
- BCD
removed, subject to conditions, on oxygen free copper for manufacture of
resistors.
Chemicals
and Petrochemicals
- BCD
on ammonium nitrate increased from 7.5 to 10 per cent.
Plastics
- BCD
on PVC flex banners increased from 10 to 25 per cent.
Telecommunication
Equipment
- BCD
increased from 10 to 15 per cent on PCBA of specified telecom equipment.
Trade
facilitation
- For
promotion of domestic aviation and boat & ship MRO, time period for
export of goods imported for repairs extended from six months to one year.
- Time-limit
for re-import of goods for repairs under warranty extended from three to
five years.
Critical
Minerals
- 25 critical
minerals fully exempted from customs duties.
- BCD
on two critical minerals reduced.
Solar
Energy
- Capital
goods for use in manufacture of solar cells and panels exempted from
customs duty.
Marine
products
- BCD
on certain broodstock, polychaete worms, shrimp and fish feed reduced to 5
per cent.
- Various
inputs for manufacture of shrimp and fish feed exempted from customs duty.
Leather
and Textile
- BCD
reduced on real down filling material from duck or goose.
- BCD
reduced, subject to conditions, on methylene diphenyl diisocyanate (MDI)
for manufacture of spandex yarn from 7.5 to 5 per cent.
Direct
Taxes
- Efforts
to simplify taxes, improve tax payer services, provide tax certainty and
reduce litigation to be continued.
- Enhance
revenues for funding development and welfare schemes of government.
- 58
per cent of corporate tax from simplified tax regime in FY23, more than
two-thirds taxpayers availed simplified tax regime for personal income tax
in FY 24.
Simplification
for Charities and of TDS
- Two
tax exemption regimes for charities to be merged into one.
- 5
per cent TDS rate on many payments merged into 2 per cent TDS rate.
- 20
per cent TDS rate on repurchase of units by mutual funds or UTI withdrawn.
- TDS
rate on e-commerce operators reduced from one to 0.1 per cent.
- Delay
for payment of TDS up to due date of filing statement decriminalized.
Simplification
of Reassessment
- Assessment
can be reopened beyond three years upto five years from the end of
Assessment Year only if the escaped income is ₹ 50 lakh or more.
- In
search cases, time limit reduced from ten to six years before the year of
search.
Simplification
and Rationalisation of Capital Gains
- Short
term gains on certain financial assets to attract a tax rate of 20 per
cent.
- Long
term gains on all financial and non-financial assets to attract a tax rate
of 12.5 per cent.
- Exemption
limit of capital gains on certain financial assets increased to ₹ 1.25
lakh per year.
Tax
Payer Services
- All
remaining services of Customs and Income Tax including rectification and
order giving effect to appellate orders to be digitalized over the next
two years.
Litigation
and Appeals
- ‘Vivad
Se Vishwas Scheme, 2024’ for resolution of income tax disputes pending in
appeal.
- Monetary
limits for filing direct taxes, excise and service tax related appeals in
Tax Tribunals, High Courts and Supreme Court increased to ₹60 lakh, ₹2
crore and ₹5 crore respectively.
- Safe
harbour rules expanded to reduce litigation and provide certainty in
international taxation.
Employment
and Investment
- Angel
tax for all classes of investors abolished to bolster start-up
eco-system,.
- Simpler
tax regime for foreign shipping companies operating domestic cruises to
promote cruise tourism in India.
- Safe
harbour rates for foreign mining companies selling raw diamonds in the
country.
- Corporate
tax rate on foreign companies reduced from 40 to 35 per cent.
Deepening
tax base
- Security
Transactions Tax on futures and options of securities increased to 0.02
per cent and 0.1 per cent respectively.
- Income
received on buy back of shares in the hands of recipient to be taxed.
Social
Security Benefits.
- Deduction
of expenditure by employers towards NPS to be increased from 10 to 14 per
cent of the employee’s salary.
- Non-reporting
of small movable foreign assets up to ₹20 lakh de-penalised.
Other
major proposal in Finance Bill
- Equalization
levy of 2 per cent withdrawn.
Changes
in Personal Income Tax under new tax regime
- Standard
deduction for salaried employees increased from ₹50,000 to ₹75,000.
- Deduction
on family pension for pensioners enhanced from ₹15,000/- to ₹25,000/-
- Revised
tax rate structure:
|
0-3 lakh rupees |
Nil |
|
3-7 lakh rupees |
5 per cent |
|
7-10 lakh rupees |
10 per cent |
|
10-12 lakh rupees |
15 per cent |
|
12-15 lakh rupees |
20 per cent |
|
Above 15 lakh rupees |
30 per cent |
- Salaried
employee in the new tax regime stands to save up to ₹ 17,500/- in income
tax.
SOURCE: PIB INDIA https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2035609
