Highlights of Union Budget 2024-25

Key Takeaways: Union Budget 2024-25 focused on employment, skilling, MSMEs and the middle class with 105 key highlights. Major tax changes included capital gains rationalisation, revised new regime slabs, higher standard deduction, angel tax abolition, and a 4.9 percent fiscal deficit target, alongside big allocations for infrastructure and youth.

 

Top Highlights of Budget 2024-25:

 

1. 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.

2. Standard Deduction:

– Increased from ₹50,000 to ₹75,000.

3. Family Pension Deduction:

– Increased from ₹15,000 to ₹25,000.

4. 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%

5. Angel Tax:

– Abolished for all categories of investors.

6. Securities Transaction Tax (STT) on F&O:

– Increased to 0.2%.

7. Capital Expenditure:

– ₹11.11 lakh crore or 3.4% of GDP.

8. 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

9. Fiscal Deficit:

– Lowered to 4.9% of GDP.

– Market borrowing unchanged at ₹14.13 lakh crore.

10. Future Fiscal Deficit Targets:

– FY25: Reduced to 4.9% from 5.1% in interim budget.

– Aim to reach below 4.5% by FY26.

11. Basic Customs Duty (BCD) on Mobile Phones and Chargers:

– Reduced to 15%.

12. Highest Capex Spending:

– To support the economy and job creation.

13. Schemes Benefiting Women and Girls:

– Over ₹3 lakh crore allocated.

14. Mudra Loans:

– Limit extended to ₹20 lakh from ₹10 lakh for those who have availed and paid previous loans.

15. New Mechanism for MSMEs:

– Facilitating continuation of bank credit during stress periods.

16. Focus on Employment, Skilling, MSMEs, and Middle Class.
17. Detailed Roadmap for Nine Priorities:

– Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation, R&D, Next-Gen Reforms.

18. Prime Minister’s Package for Youth:

– ₹2 lakh crore for 5 schemes benefiting 4.1 crore youth over 5 years.

19. Youth and Skill Development:

– ₹2 lakh crore to be spent over the next 5 years.

20. Digital Coverage of Farm Land and Farmers:

– To help farmers get their dues.

21. PM Garib Kalyan Ann Yojana:

– Extended for 5 years benefiting 80 crore people.

22. Incentives for Youth Entering Job Market:

– 1 month PF contribution for 30 lakh youth.

23. Working Women Hostels:

– To promote women’s participation in the workforce.

24. PM Vishwakarma Scheme:

– End-to-end support for artisans and craftspeople.

25. Education, Employment, and Skilling Allocation:

– ₹1.48 lakh crore allocated.

26. Purvodaya Plan:

– For the development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

27. E-vouchers for Students:

– Direct e-vouchers with 3% interest subvention on loans.

28. Upgrading 1,000 ITIs:

– In a hub and spoke model.

29. Revised Model Skilling Loan Scheme:

– Loans up to ₹7.5 lakh.

30. New Skilling Scheme:

– 20 lakh youth to be skilled over 5 years.

31. Climate-Resilient Seeds:

– 109 new high-yielding seeds to be released.

32. Women Participation in Workforce:

– Promotion through working women hostels.

33. Climate-Resilient Seeds Development:

– Funds for private sector and domain experts.

34. Employment and Skilling Schemes:

– Incentives based on EPFO enrolment.

35. India Post Payments Bank in North East:

– 100 branches to be set up.

36. Rural Development Allocation:

– ₹2.66 lakh crore provisioned.

37. Model Skill Loan Scheme Revision:

– To help 25,000 students yearly.

38. E-vouchers for Higher Education Loans:

– Up to ₹10 lakh with 3% annual interest subvention.

39. Gaya Industrial Node Development:

– On the Amritsar-Kolkata Industrial Corridor.

40. Amritsar-Kolkata Industrial Corridor:

– Support for Gaya industrial node development.

41. India Post Payment Bank in North East:

– More than 100 branches to be set up.

42. Rural Development:

– ₹2.66 lakh crore allocated.

43. Voluntary Closure of LLPs:

– To save late fees and fines.

44. Purvodaya Plan:

– All-round development of Eastern India.

45. MSME Buyers T/O Threshold Reduced:

– From ₹500 crore to ₹250 crore for mandatory onboarding to TReDS.

46. Insolvency and Bankruptcy Code (IBC):

– Dissolved 1,000+ companies with ₹3.3 lakh crore direct recovery.

47. IBC Amendments:

– Additional tribunals to be established.

48. Rental Housing for Industrial Workers:

– Facilitated in PPP mode.

49. MSME Credit Guarantee Scheme:

– Up to ₹100 crore cover.

50. Andhra Pradesh Reorganization Act:

– ₹15,000 crore special financial support.

51. SIDBI Branch Expansion:

– 24 new branches to serve MSME clusters.

52. Pradhan Mantri Janjatiya Unnat Gram Abhiyan:

– Improving socio-economic condition of tribal communities.

53. Female Labour Force Participation Rate (LFPR):

– Rose to 37% in 2022-2023 from 23.3% in 2017-2018.

54. Women in PM Jan Dhan Yojana:

– Hold 55.6% of accounts.

55. Self Help Groups (SHGs):

– 8.3 million SHGs covering 89 million women.

56. PM Mudra Yojana:

– 68% loans to women.

57. Nuclear Energy:

– Important part of energy requirements.

58. Natural Farming for Farmers:

– 1 crore farmers to be supported.

59. Bio-input Resource Centers:

– 10,000 centers to be established.

60. Insolvency & Bankruptcy Code Platform:

– Integrated technology platform to improve outcomes.

61. Aatmanirbharta in Pulses & Oil Seeds:

– Focus on production, storage, and marketing.

62. Debt Recovery Tribunals:

– Strengthened and additional tribunals to be established.

63. Transit Oriented Development Plans:

– For 14 large cities with population above 30 lakh.

64. PM Awas Yojana Urban 2.0:

– Covering 1 crore urban poor and middle-class families.

65. Street Food Hubs:

– 100 weekly ‘haats’ in select cities.

66. Plug and Play Industrial Parks:

– To be developed in or near 100 cities.

67. National Industrial Corridor Development Programme:

– 12 industrial parks sanctioned.

68. PM Surya Ghar Muft Bijli Yojana:

– 1.28 crore registrations and 14 lakh applications received.

69. Pumped Storage Policy:

– For electricity storage and renewable energy integration.

70. NTPC and BHEL Joint Venture:

– 800 MW commercial thermal plant using AUSC technology.

71. Support for Pump Storage Projects:

– To provide round-the-clock energy.

72. Rooftop Solar Panels Scheme:

– 1 crore households to receive free electricity up to 300 units per month.

73. Rural Development Fund:

– ₹2.66 lakh crore earmarked.

74. PM Awas Yojana Urban 2.0:

– Housing for 1 crore poor and middle-class families.

75. New Power Plant in Bihar:

– 2400 MW plant at Pirpainti costing ₹21,400 crore.

76. PM Gram Sadak Yojana Phase IV:

– In 25 rural habitations.

77. Infra Projects Fiscal Support:

– Strong support for the next 5 years.

78. Energy Audit of MSMEs:

 

 

– Investment grade energy audits in 60 clusters.

79. PM Surya Ghar Muft Bijli Yojana Response:

– 1.8 crore people registered.

80. Urban Housing Assistance:

– ₹2.2 lakh crore over next five years.

81. States Infrastructure Support:

– ₹1.5 lakh crore long-term interest-free loans.

82. Temple Corridor Transformations:

– Vishnupad and Mahabodhi Temple Corridors.

83. Nalanda Development:

– As a tourist center; revival of Nalanda University.

84. NPS Vatsalya Scheme:

– For parental contributions to minors’ NPS accounts.

85. Flood Management and Development Support:

– For Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim.

86. Land Administration Reforms:

– In rural and urban areas.

87. Unique Land Parcel Identification Number:

– For rural lands.

88. Rural Land Registry:

– To be established.

89. Inclusive Development Commitment:

– Focus on farmers, women, youth, and the poor.

90. Social Justice Programs:

– Education and health programs with a saturation approach.

91. Anusandhan National Research Fund:

– For basic research and prototype development.

92. Private Sector-Driven Research:

– ₹1 lakh crore financing pool.

93. Venture Capital Fund for Space Economy:

– ₹1000 crore proposed.

94. Financial Assistance for Veteran Artists:

– For artists aged 60+ with annual income under ₹72,000.

95. Internships in MSMEs:

– For technical students.

96. Simplifying GST Structure:

– Further simplification and rationalization.

97. Industrial Training Centers:

– Short-term training and internships for youth.

98. FDI and Overseas Investment Rules:

– Simplification and promotion of Indian rupee use.

99. Climate Finance Taxonomy:

– To be developed.

100. Shram Suvidha Portal Revamp:

– To enhance compliance for industry and trade.

101. Customs Duties on Critical Minerals:

– Adjustments to BCD on key minerals.

102. Digitalization of Economy:

– Jan Vishwas Bill 2.0 for improved Ease of Doing Business.

103. NPS-Vatsalya for Minors:

– Seamless conversion to regular NPS on reaching adulthood.

104. Net Tax Receipts:

– Estimated at ₹25.83 lakh crore in FY25.

105. 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