Highlights of Union Budget 2024-25
Top Highlights of Budget 2024-25:
- Capital Gains Taxes:
– Short-term gains: 20% on all financial assets.
– Long-term gains: 12.5% on all assets.
– Exemption on profits up to ₹1.25 lakh a year.
- Standard Deduction:
– Increased from ₹50,000 to ₹75,000.
- Family Pension Deduction:
– Increased from ₹15,000 to ₹25,000.
- New Income Tax Slabs in the New Regime:
– ₹0-3 lakh: Nil
– ₹3-7 lakh: 5%
– ₹7-10 lakh: 10%
– ₹10-12 lakh: 15%
– ₹12-15 lakh: 20%
– Above ₹15 lakh: 30%
- Angel Tax:
– Abolished for all categories of investors.
- Securities Transaction Tax (STT) on F&O:
– Increased to 0.2%.
- Capital Expenditure:
– ₹11.11 lakh crore or 3.4% of GDP.
- Historical Capex Spending:
– 2019: ₹3.1 lakh crore
– 2021: ₹4.4 lakh crore
– 2022: ₹5.5 lakh crore
– 2023: ₹7.5 lakh crore
– 2024: ₹10 lakh crore
– 2025: ₹11.1 lakh crore
- Fiscal Deficit:
– Lowered to 4.9% of GDP.
– Market borrowing unchanged at ₹14.13 lakh crore.
- Future Fiscal Deficit Targets:
– FY25: Reduced to 4.9% from 5.1% in interim budget.
– Aim to reach below 4.5% by FY26.
- Basic Customs Duty (BCD) on Mobile Phones and Chargers:
– Reduced to 15%.
- Highest Capex Spending:
– To support the economy and job creation.
- Schemes Benefiting Women and Girls:
– Over ₹3 lakh crore allocated.
- Mudra Loans:
– Limit extended to ₹20 lakh from ₹10 lakh for those who have availed and paid previous loans.
- New Mechanism for MSMEs:
– Facilitating continuation of bank credit during stress periods.
- Focus on Employment, Skilling, MSMEs, and Middle Class.
- Detailed Roadmap for Nine Priorities:
– Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation, R&D, Next-Gen Reforms.
- Prime Minister’s Package for Youth:
– ₹2 lakh crore for 5 schemes benefiting 4.1 crore youth over 5 years.
- Youth and Skill Development:
– ₹2 lakh crore to be spent over the next 5 years.
- Digital Coverage of Farm Land and Farmers:
– To help farmers get their dues.
- PM Garib Kalyan Ann Yojana:
– Extended for 5 years benefiting 80 crore people.
- Incentives for Youth Entering Job Market:
– 1 month PF contribution for 30 lakh youth.
- Working Women Hostels:
– To promote women’s participation in the workforce.
- PM Vishwakarma Scheme:
– End-to-end support for artisans and craftspeople.
- Education, Employment, and Skilling Allocation:
– ₹1.48 lakh crore allocated.
- Purvodaya Plan:
– For the development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
- E-vouchers for Students:
– Direct e-vouchers with 3% interest subvention on loans.
- Upgrading 1,000 ITIs:
– In a hub and spoke model.
- Revised Model Skilling Loan Scheme:
– Loans up to ₹7.5 lakh.
- New Skilling Scheme:
– 20 lakh youth to be skilled over 5 years.
- Climate-Resilient Seeds:
– 109 new high-yielding seeds to be released.
- Women Participation in Workforce:
– Promotion through working women hostels.
- Climate-Resilient Seeds Development:
– Funds for private sector and domain experts.
- Employment and Skilling Schemes:
– Incentives based on EPFO enrolment.
- India Post Payments Bank in North East:
– 100 branches to be set up.
- Rural Development Allocation:
– ₹2.66 lakh crore provisioned.
- Model Skill Loan Scheme Revision:
– To help 25,000 students yearly.
- E-vouchers for Higher Education Loans:
– Up to ₹10 lakh with 3% annual interest subvention.
- Gaya Industrial Node Development:
– On the Amritsar-Kolkata Industrial Corridor.
- Amritsar-Kolkata Industrial Corridor:
– Support for Gaya industrial node development.
- India Post Payment Bank in North East:
– More than 100 branches to be set up.
- Rural Development:
– ₹2.66 lakh crore allocated.
- Voluntary Closure of LLPs:
– To save late fees and fines.
- Purvodaya Plan:
– All-round development of Eastern India.
- MSME Buyers T/O Threshold Reduced:
– From ₹500 crore to ₹250 crore for mandatory onboarding to TReDS.
- Insolvency and Bankruptcy Code (IBC):
– Dissolved 1,000+ companies with ₹3.3 lakh crore direct recovery.
- IBC Amendments:
– Additional tribunals to be established.
- Rental Housing for Industrial Workers:
– Facilitated in PPP mode.
- MSME Credit Guarantee Scheme:
– Up to ₹100 crore cover.
- Andhra Pradesh Reorganization Act:
– ₹15,000 crore special financial support.
- SIDBI Branch Expansion:
– 24 new branches to serve MSME clusters.
- Pradhan Mantri Janjatiya Unnat Gram Abhiyan:
– Improving socio-economic condition of tribal communities.
- Female Labour Force Participation Rate (LFPR):
– Rose to 37% in 2022-2023 from 23.3% in 2017-2018.
- Women in PM Jan Dhan Yojana:
– Hold 55.6% of accounts.
- Self Help Groups (SHGs):
– 8.3 million SHGs covering 89 million women.
- PM Mudra Yojana:
– 68% loans to women.
- Nuclear Energy:
– Important part of energy requirements.
- Natural Farming for Farmers:
– 1 crore farmers to be supported.
- Bio-input Resource Centers:
– 10,000 centers to be established.
- Insolvency & Bankruptcy Code Platform:
– Integrated technology platform to improve outcomes.
- Aatmanirbharta in Pulses & Oil Seeds:
– Focus on production, storage, and marketing.
- Debt Recovery Tribunals:
– Strengthened and additional tribunals to be established.
- Transit Oriented Development Plans:
– For 14 large cities with population above 30 lakh.
- PM Awas Yojana Urban 2.0:
– Covering 1 crore urban poor and middle-class families.
- Street Food Hubs:
– 100 weekly ‘haats’ in select cities.
- Plug and Play Industrial Parks:
– To be developed in or near 100 cities.
- National Industrial Corridor Development Programme:
– 12 industrial parks sanctioned.
- PM Surya Ghar Muft Bijli Yojana:
– 1.28 crore registrations and 14 lakh applications received.
- Pumped Storage Policy:
– For electricity storage and renewable energy integration.
- NTPC and BHEL Joint Venture:
– 800 MW commercial thermal plant using AUSC technology.
- Support for Pump Storage Projects:
– To provide round-the-clock energy.
- Rooftop Solar Panels Scheme:
– 1 crore households to receive free electricity up to 300 units per month.
- Rural Development Fund:
– ₹2.66 lakh crore earmarked.
- PM Awas Yojana Urban 2.0:
– Housing for 1 crore poor and middle-class families.
- New Power Plant in Bihar:
– 2400 MW plant at Pirpainti costing ₹21,400 crore.
- PM Gram Sadak Yojana Phase IV:
– In 25 rural habitations.
- Infra Projects Fiscal Support:
– Strong support for the next 5 years.
- Energy Audit of MSMEs:
– Investment grade energy audits in 60 clusters.
- PM Surya Ghar Muft Bijli Yojana Response:
– 1.8 crore people registered.
- Urban Housing Assistance:
– ₹2.2 lakh crore over next five years.
- States Infrastructure Support:
– ₹1.5 lakh crore long-term interest-free loans.
- Temple Corridor Transformations:
– Vishnupad and Mahabodhi Temple Corridors.
- Nalanda Development:
– As a tourist center; revival of Nalanda University.
- NPS Vatsalya Scheme:
– For parental contributions to minors’ NPS accounts.
- Flood Management and Development Support:
– For Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim.
- Land Administration Reforms:
– In rural and urban areas.
- Unique Land Parcel Identification Number:
– For rural lands.
- Rural Land Registry:
– To be established.
- Inclusive Development Commitment:
– Focus on farmers, women, youth, and the poor.
- Social Justice Programs:
– Education and health programs with a saturation approach.
- Anusandhan National Research Fund:
– For basic research and prototype development.
- Private Sector-Driven Research:
– ₹1 lakh crore financing pool.
- Venture Capital Fund for Space Economy:
– ₹1000 crore proposed.
- Financial Assistance for Veteran Artists:
– For artists aged 60+ with annual income under ₹72,000.
- Internships in MSMEs:
– For technical students.
- Simplifying GST Structure:
– Further simplification and rationalization.
- Industrial Training Centers:
– Short-term training and internships for youth.
- FDI and Overseas Investment Rules:
– Simplification and promotion of Indian rupee use.
- Climate Finance Taxonomy:
– To be developed.
- Shram Suvidha Portal Revamp:
– To enhance compliance for industry and trade.
- Customs Duties on Critical Minerals:
– Adjustments to BCD on key minerals.
- Digitalization of Economy:
– Jan Vishwas Bill 2.0 for improved Ease of Doing Business.
- NPS-Vatsalya for Minors:
– Seamless conversion to regular NPS on reaching adulthood.
- Net Tax Receipts:
– Estimated at ₹25.83 lakh crore in FY25.
- Customs Duties on Precious Metals:
– Reduced to 6% for gold and 6.5% for platinum.
Download Finance Bill 2024-25 below:
Finance_Bill 2024-25
Download Memo 2024-25 below:
Download Memo 2024-25
Download Budget Speech 2024-25 below:
Budget_speech_AY 2024-25
Contact – anshul@karwaandassociates.com