Key Highlights of the Indian Union Budget 2024-2025

Read the highlights of the Union Budget of India for 2024-25, presented on 23 July 2024

Tax Proposals and Financial Reforms

1. Changes include a standard deduction increase for salaried employees and tax rationalization on capital gains.

2. Updated rates for short-term and long-term capital gains on both financial and non-financial assets.

3. Short term gains of financial assets to attract 20% tax rate.

4. Long term gains on all financial and non-financial assets to attract a tax rate of 12.5%.

5. Reductions in duties on essential goods like mobile phones, gold, silver, and critical minerals.

6. Measures to boost domestic manufacturing, including exemptions and reduced rates on specific goods.

7. Efforts to reduce compliance burdens and simplify tax regimes, especially for startups and investors.

8. Exemptions for capital goods for manufacturing solar cells and panels.

9. Corporate tax rate on foreign companies has reduced from 40% to 35%.

10. Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year.
    

New Personal Income Tax Slabs for FY 2024-25

·       MSMEs and Industrial Development

1. Enhanced credit guarantee schemes and increased Mudra loan limits to support MSMEs.

2. Development of 12 industrial parks under the National Industrial Corridor Development Programme.

3. Loan limits increased to ₹20 lakh under the 'Tarun' category.

4. Removal of Angel Tax for all classes of investors.

5. Initiatives to provide internships in top companies, with allowances and CSR fund support.

·       Digital Transformation and Innovation

1. Venture capital funding for space-related ventures, promoting India's presence in the global space economy.

2. A ₹1 lakh crore fund for supporting commercial-scale research and innovation in emerging technologies.

3. Launch of Bhu-Aadhaar for accurate land mapping and property registration, streamlining the real estate sector.

4. Extension of digital services to farmers, including digital crop surveys and enhanced land records management.

·       Employment and Skilling

1. Interns will receive a monthly stipend of ₹5,000 and one-time assistance of ₹6,000.

2. Companies directed to cover the training expenses and contribute 10% of the internship costs through their Corporate Social Responsibility (CSR) funds, while the remaining costs be covered by the government.

3. Setting up working women hostels and establishing creches to increase female workforce participation.

4. Various schemes offering incentives to employers for hiring new employees, expected to benefit lakhs of youth.

5. Government reimbursement for EPFO contributions for new hires, expected to generate substantial job opportunities.

·       Infrastructure and Urban Development

1. ₹1.5 lakh crore allocated for long-term loans to states, focusing on road transport, irrigation, and flood mitigation projects.

2. Transit-oriented development plans and promotion of water supply, sewage treatment, and solid waste management.

3. Establishment of Bharat Small Reactors and policies for energy storage and renewable energy integration.

·       Agriculture and Rural Development

1. A National Cooperation Policy will be launched to enhance the efficiency and governance of cooperatives, especially in rural areas.

2. Introduction of 109 new crop varieties to improve resilience against climate change and increase productivity.

3. A strategic push towards increasing domestic production of oilseeds like mustard and soybean, reducing import dependency.

   
   

·       Green Initiatives and Sustainability

1. Increased funding for water recycling and rainwater harvesting initiatives to address water scarcity.

2. New regulations and support for industries to manage plastic waste effectively.

3. Introduction of a carbon trading mechanism to incentivize industries to reduce emissions.