Finance Minister Nirmala Sitharaman presented the 11th Union Budget 2024 on 23rd July 2024 in Parliament. This marks her seventh consecutive budget, surpassing the late Morarji Desai’s record of six consecutive budgets. The focus of this budget includes changes to the income tax structure and initiatives to improve the ease of doing business in India. It is the first major economic document of Prime Minister Narendra Modi’s third term in office. Among its goals is to lay the roadmap for transforming India into ‘Viksit Bharat’ by 2047.

The following are the salient features of Finance Minister Nirmala Sitharaman’s presentation of the Union Budget 2024:

Productivity and Job Creation: Increasing productivity and generating job opportunities are priorities for the government.
Social Justice: It is important to take action to advance social justice.
Investments made in the infrastructure and development of metropolitan areas.
Energy Security: Efforts to improve the security of energy.
Tax Rationalization: Attempts to make the tax system more logical.
Ongoing Programs: The programs included in the interim budget for February will continue.

Union Budget 2024- Employment and Job Creation in India.

In terms of employment and job generation in India, the Union Budget 2024:

1. New Employee Incentive Schemes:

Direct benefit transfers (DBT) of up to ?15,000 would be given to new hires in three payments, with a monthly salary ceiling of ?1 lakh. The goal of this program is to help 2.1 lakh young people.

To boost 30 lakh youth employment and 50 lakh new jobs, employers will receive reimbursements of up to ?3,000 per month for two years for each new hire.

2. Education and Skill Development:

A ?1.48 lakh crore budget was made for skill development, employment, and education.
Up to ?10 lakh in support loans will be provided to students who have not previously benefited from any government programs to finance their studies at domestic universities.
A comprehensive program was unveiled to give one crore young people internships in 500 prestigious companies for five years, giving them exposure to real-world business settings.

3. State-Specific Initiatives:

Bihar: The “Purvodaya” plan covers all-round development in eastern states, including Bihar. Expressways, power projects, new airports, medical colleges, and sports infrastructure will be constructed in Bihar.

Andhra Pradesh: Several schemes were announced for Andhra Pradesh, which elected the NDA Government in the recently concluded General Elections

Union Budget 2024: Key Changes in Income Tax Slabs

The Union Budget 2024 introduced significant changes to the income tax slabs, aiming to provide relief to taxpayers while ensuring fiscal stability. Let’s delve into the details:

1. Nil Tax (Up to Rs3 Lakh)

• Individuals with an annual income of up to Rs 3 lakh are exempt from income tax. This remains unchanged from previous years in this union budget 2024.

2. 5% Tax (Rs3 Lakh to Rs7 Lakh)

• For income between Rs 3 lakh and RS 7 lakh, the tax rate is 5%. This moderate tax bracket aims to ease the burden on middle-income earners.

3. 10% Tax (Rs 7 Lakh to Rs 10 Lakh)

• Earnings falling between Rs 7 lakh and Rs 10 lakh are subject to a 10% tax rate. This segment includes a substantial portion of the salaried workforce.

4. 15% Tax (Rs 10 Lakh to Rs 12 Lakh)

• The tax rate increases to 15% for income between Rs10 lakh and Rs 12 lakh. This bracket targets higher earners while maintaining progressivity.

5. 20% Tax (Rs 12 Lakh to Rs 15 Lakh)

• Individuals earning between Rs12 lakh and Rs15 lakh fall under the 20% tax slab. This rate applies to upper-middle-income groups.

6. 30% Tax (Above Rs 15 Lakh)

• Any income exceeding Rs15 lakh is taxed at a higher rate of 30%. This top tax bracket affects high-income individuals.

Additional Measures

• The standard deduction for salaried employees has been increased from Rs 50,000 to Rs 75,000, providing additional relief.
• Family pension deductions for pensioners have also been enhanced from Rs 15,000 to Rs 25,000.

The revised income tax slabs aim to strike a balance between revenue collection and taxpayer welfare. As always, consult a tax professional or visit the official government website for personalized advice based on your specific situation.

Remember to file your taxes accurately and take advantage of available deductions to optimize your tax liability.

Union Budget 2024: Empowering Businesses and Startups

1. Angel Tax Abolished

Finance Minister Nirmala Sitharaman took a significant step by abolishing the angel tax for all investor classes. This move aims to boost the Indian startup ecosystem, which faced funding challenges recently. The Department for Promotion of Industry and Internal Trade (DPIIT) now recognizes 1,17,000 startups with turnover limits. Let’s delve into the details:

• Angel Tax: Previously, startups faced the burden of angel tax, impacting their funding prospects. With its abolition, investors can now support startups without tax-related hurdles.

2. Expanding Eligibility for Startups

• The definition of “eligible startup” under the Startup India scheme has been extended. Entities incorporated between April 1, 2016, and March 31, 2025, now qualify. This change allows more startups to benefit from the tax holiday offered by the scheme.

3. TDS Rate Reduction for E-commerce Operators

• Union budget 2024 includes the TDS rate on e-commerce operators has been reduced from 1% to 0.1%. This move aims to facilitate smoother transactions and encourage e-commerce growth.

4. Decriminalization of TDS Delays

• Finance Minister Sitharaman proposed to decriminalize TDS delays up to the filing of tax returns. This business-friendly approach aims to reduce compliance stress.

5. Equalisation Levy Update

• The Equalisation Levy, previously applicable at 2% for e-commerce supply of goods or services, will no longer apply after August 1, 2024.

The Union Budget 2024 focuses on fostering innovation, easing compliance, and supporting startups. As India’s startup ecosystem continues to evolve, these measures aim to create a conducive environment for growth and entrepreneurship.

Union Budget 2024: Changes in Infrastructure – Tourism

Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor modeled on the Kashi Vishwanath Temple Corridor. A comprehensive development initiative for Rajgir will be undertaken which holds religious significance for Hindus, Buddhists, and Jains.

The development of Nalanda as a tourist center besides reviving Nalanda University to its glorious stature. Assistance to the development of Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes, and pristine beaches making it an ultimate tourism destination.

 Union Budget 2024: Costlier and Cheaper Items

Here’s a concise summary of what becomes costlier and what gets cheaper in India based on the Union Budget 2024:

Changes in Custom Duty	Beneficiaries
Reduce CDT to 15% on mobile phones, fully exempted from CDT on charger	Mobile industry
Reduce CDT on motor vehicles from 45% to 35%	Affordable automobiles
Reduce basic CDT on gold and silver to 6%, and platinum to 6.4%	Domestic value addition
Exempted BCD on capital goods for manufacturing of leather goods & anti-cancer drugs	Enhance competitiveness, support emerging sectors
Fully exempt custom duties on seeds & plant materials	Boost to strategic sectors

Precious Metals:

• Gold: The custom duty remains unchanged at 6%.
• Silver: Custom duty on silver also remains at 6%.
• Platinum: The custom duty on platinum is reduced to 6.5%.

Union Budget 2024 may impact your financial situation, so adapt the 50/30/20 rule to your reality. If housing costs are high in your area, adjust your budget accordingly. Remember, budgets are meant to bend but not break. Prioritize savings, manage wants wisely, and stay financially resilient!

Sources: Livemint.com, the Hindu, thehindubusinessline, Indian Budget

©Ruchi Verma

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