7th Union Budget FY 2024-25, Presented by Honourable FM "Nirmala Sitharaman"

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THE 9 PRIORITIES

·??????? Productivity and resilience in Agriculture

·??????? Employment and skilling

·??????? Inclusive HRD and social justice

·??????? Manufacturing & Services

·??????? Urban development

·??????? Energy security

·??????? Infrastructure

·??????? Innovation, R&D

·??????? Next generation reforms.

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JOBS IN MANUFACTURING

·??????? Scheme to incentivise job creation in manufacturing.

·??????? EPFO contribution benefits for first-time employees and their employers for 4 years.

·??????? Up to 3,000 monthly for two years for employers, aiming to benefit 30 lakh youths and create 50 lakh new jobs across all sectors.

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EDUCATION AND EMPLOYMENT

PM Package: 5 schemes with 2 lakh crore allocation for employment and skilling.

Budget Provision: 1.48 lakh crore for education, employment, and skilling.

Incentives for First-time Employees:

■ One-month wage upon joining

Up to ?15,000 in three DBT instalments for eligible employees earning up to 1 lakh/month

■ Benefiting 210 lakh youths

Higher Education Support: Financial assistance for loans up to 10 lakh.

Youth Internships:

■ One crore youth to receive internships in 500 companies over five years.

■ ?5,000 monthly allowance.

■ Training costs to be covered by companies using CSR funds.

STATE ASSISTANCE:

BIHAR:

■ A new 2400 MW power plant in Pirpainti, Bihar

■ New airports, medical colleges & sports infrastructure

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ANDHRA PRADESH:

■ Financial support, including ?15,000 crore this fiscal year

■ Completion & financing of the Polavaram irrigation project

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ODISHA:

■ Assistance to Odisha for the development of tourism.

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TAX:

·??????? Securities Transaction Tax: Increased to 0.2% for Futures and 0.1% for Options.

·??????? NPS Contributions: Deduction limit raised from 10% to 14% of salary.

·??????? Standard Deduction: Increased from ?50,000 to ?75,000

·??????? Family Pension Deduction: Increased from ?15,000 to ?25,000

TAX:-

Abolish Angel Tax: Eliminating Angel Tax for all investor classes

Income Tax Act Review: A comprehensive review of the Income-tax Act, 1961 in six months to make it concise, lucid, and reduce disputes & litigation

TDS Changes:

■E-commerce rate reduced from 1% to 0.1%.

■ Decriminalised delays in payment up to filing due date

■ Simplified reassessment for cases over 50 lakh

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Capital Gains Tax:

■ Short-term gains on certain financial assets taxed at 20%.

■ Exemption limit raised to ?1.25 lakh annually for some assets.

■Taxes on unlisted bonds, debt mutual funds, and market-linked debentures.

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NEW TAX REGIME:

Income Range

Tax Rate Up to 23 lakh - 0%

*3 lakh to ?7 lakh - 5%

7 lakh to ?10 lakh - 10%

?10 lakh to 12 lakh - 15%

*12 lakh to 15 lakh - 20%

Above 15 lakh - 30%

DEVELOPMENT: URBAN & RURAL

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PM Awas Yojana Urban 2.0 10 lakh crore to address housing needs for one crore poor & middle class, including ?2.2 lakh crore central assistance over five years

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Street Markets:

Develop 100 weekly 'haats' or street food hubs in select cities

Transit Oriented Development: For 14 large cities with a population above 30 lakh

Water Management:

Water supply, sewage treatment & solid waste management projects & services for 100 large cities

PM Awas Yojana (Rural Development): 22.66 lakh crore for rural development including construction of three crore houses.

ENERGY SECURITY

·??????? PM SURYA GHAR MUFT BIJLI YOJANA

·??????? To install rooftop solar plants, providing free electricity up to 300 units per month to 1 crore households

·??????? Development of small and modular nuclear reactors in focus.

SPECIAL ANNOUNCEMENTS

·??????? Phase IV of Pradhan Mantri Gram Sadak

·??????? Yojana announced

·??????? Space Economy

·??????? Plan to quintuple space economy over the next 10 years, supported by a ?1,000-crore venture capital fund.

·??????? Cancer Meds

·??????? Exemption on customs duties on three cancer drugs

·??????? Spiritual tourism

·??????? Developing tourism corridors at Vishnupad and Mahabodhi Temples

·??????? Supporting Nalanda as a tourist centre.

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GOVERNMENT EXPENDITURE ON MAJOR ITEMS

Item - Expenditure (crore)

Defence - 4,54,773

Rural Development - 2,65,808

Agriculture & Allied Activities - 1,51,851

Home Affairs - 1,50,983

Education - 1,25,638

IT and Telecom - 1,16,342

Health - 89,287

Energy - 68,769

Social Welfare - 56,501

Commerce & Industry - 47,559

FOREIGN INVESTMENT

CORPORATE TAX RATE

Cut on foreign companies from 40% to 35%

FDI RULES to be simplified further

PROMOTE USE OF RUPEE for overseas investments.

WOMEN'S WELFARE

Female Workforce Participation To be increased through hostels and women-specific skilling programs.

Funding Increase

218.8% rise in women's welfare and empowerment funding from FY14 to FY25

Stamp Duty Reduction

States encouraged to lower stamp duties for properties purchased by women.

MSMES GET A PUSH

MUDRA LOANS:

Limit enhanced from ?10 lakh to ?20 lakh for those who have availed and successfully repaid loans previously taken under the Tarun category

NEW CREDIT GUARANTEE SCHEME:

A new credit guarantee scheme to enable collateral-free term loans for machinery and equipment with cover of up to 100 crore.

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AGRICULTURE

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·??????? Crops: 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops

·??????? National Cooperation Policy for national development announced

·??????? Digital Infrastructure: Introduction of Kisan Credit Cards in 5 states

·??????? Shrimp farming promoted

·??????? Focus on Large-scale vegetable production

·??????? Self-sufficiency in pulses and oilseeds:

·??????? Govt to strengthen production, storage & marketing

·??????? Natural farming: One crore farmers will transition to natural farming with support for certification and branding, with 10,000 bio-input resource centres to be established

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