Union Budget 2024 - Key highlights and reactions

Finance Minister Nirmala Sitharaman's Union Budget 2024 focuses on the poor, women, youth, and farmers, featuring revised tax slabs, increased spending, and job creation initiatives. Key highlights include changes in capital gains taxes, significant infrastructure projects in Andhra Pradesh and Bihar, and new schemes for agriculture, women, and employment. The budget also addresses fiscal deficit projections and customs duty reductions, aiming to boost economic growth and social welfare. Here the key highlights from the Union Budget 2024:

Tax Revisions:

• Revised tax slabs with savings of Rs 17,500 for taxpayers.
• New tax rates: 0-3 lakh: 0%, 3-7 lakh: 5%, 7-10 lakh: 10%, 10-12 lakh: 15%, 12-15 lakh: 20%, 15 lakh & above: 30%.
• Standard Deduction increased from Rs 50,000 to Rs 75,000 under the new regime.

Capital Gains Taxes:

• Short-term gains tax on specified financial assets increased from 15% to 20%.
• Long-term gains tax on all assets raised to 12.5% from 10%.
• Exemption limit for certain listed financial assets increased to Rs 1.25 lakh annually.
• Abolishment of 'angel tax' for all investor classes.

Fiscal Deficit:

• FY25 fiscal deficit projected at 4.9% of GDP, down from 5.1%.
• Expenditure for FY25 projected at Rs 48.21 trillion; receipts at Rs 32.07 trillion.

Customs Duty Adjustments:

• Gold, silver duties reduced to 6%; platinum to 6.4%.
• Lithium, copper, cobalt exempt from Custom Duty.
• Expanded exemptions for solar cell/panel manufacturing and reduced duty on spandex yarn.

Duty Cuts on Medicines and Mobile Phones:

• Full exemption on customs duty for three additional cancer medicines.
• Duty on mobile devices and accessories reduced to 15%.
• Increased customs duty on plastic products.

Allocations for Andhra Pradesh and Bihar:

• Rs 15,000 crore for Amaravati’s development and Rs 26,000 crore for roads/expressways in Bihar.
• Funds for Vizag-Chennai Industrial corridor and temple development in Bihar and Odisha.

Infrastructure and Housing:

• 100 new branches of India Post Payments Bank in the North East.
• Twelve new industrial parks.
• Rs 10 trillion allocated for urban housing.

Critical Mineral Mission:

Auction of the first offshore mining blocks and the launch of a critical mineral mission.

Employment and Skill Development:

• Three new schemes with Rs 2 trillion allocation for job creation over five years.
• Focus on skills for 20 lakh youth and increased women's participation.

Agriculture and Women-Centric Schemes:

• Rs 1.52 trillion for agriculture and allied sectors.
• Release of 109 high-yielding and climate-resilient crop varieties.
• Rs 3 trillion for women-centric schemes.

We talked to some top industry experts to get their viewpoints on the Union Budget. Read our article to to gain insights from these experts - https://lawwiser.com/union-budget-2024-25-key-highlights-and-industry-reactions/

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