Finance Minister of India Nirmala Sitharaman presented the Union Budget 2024-25 in the Lok Sabha on 23rd July 2024. Smt. Sitharaman in her 7th Budget 2024-25 Speech outlined nine Key Focus Areas for the government :
- Improving productivity and economic resilience.
- Creating jobs and enhancing skills.
- Boosting manufacturing and services.
- Ensuring energy security.
- Developing infrastructure.
- Advancing manufacturing further.
- Implementing land reforms.
- Enhancing urban development.
- Pushing forward with next-generation reforms.
Let’s know in detail about the Key Points of Union Budget 2024-25 through this blog.
The government aims to strengthen various parts of the economy and society, ensuring they work together for overall growth and stability.
Fiscal Deficit
- Fiscal Deficit: Estimated at 4.9% of GDP, lower than the interim budget target of 5.1%.
- Receipts: Total receipts for FY25 estimated at ₹32.07 trillion.
- Expenditure: Total expenditure for FY25 pegged at ₹48.21 trillion.
Key Announcements
Renewable Energy
- PM Surya Ghar Muft Bijli Yojana: Promotion of rooftop solar installations in 1 crore households, providing up to 300 units of free electricity per month.
- Pump Storage Projects: Development to enhance renewable energy capacity and balance electricity grid supply and demand.
- Small Nuclear Reactors: Partnership with the private sector to develop small modular nuclear reactors (SMRs).
- New Renewable Energy Policy: Upcoming policy document on energy transition pathways focused on energy security.
Precious Metals
Cut on Custom Duty :
- The basic customs duty on gold and silver has been reduced from 10% to 6%.
- Basic custom duty reduction also provided on platinum to 6.4%.
Infrastructure
- Overall Capital Investment: An allocation of ₹11.1 lakh crore for capital investment in infrastructure has been made, representing an 11% increase from the previous year.
- Focus Areas: Emphasis on roads, highways, railways, and sustainable housing projects.
- Urban Housing: ₹2 lakh crore allocated under PMAY Urban Housing 2.0, part of a ₹10 lakh crore budget.
- Multi-Modal Logistics Parks: Six multi-modal logistics parks awarded, with more planned for FY25.
- National Highway Development: ₹26,000 crore invested in Bihar’s highways.
Agriculture
- Increased Allocation: ₹1.52 lakh crore allocated to the agriculture sector to boost productivity and rural welfare.
- Digital Public Infrastructure: Promotion of digital infrastructure for agriculture in partnership with states.
- Research and Development: Development of 109 new climate-resistant crop varieties across 32 categories.
- Oilseeds Self-Sufficiency: Strategy for self-sufficiency in oilseeds like mustard, sesame, sunflower, groundnut, and soybean under Atmanirbhar Oilseeds Abhiyaan.
Agri Allied Services : Fisheries (Shrimp)
- Increased Allocation: The government will provide finance for shrimp farming and marketing.
- Reduced Custom Duty: Presenting the Union Budget for 2024-25, Sitharaman said that the government has reduced the basic customs duty on shrimp to 5 per cent.
Individual Income Tax Regime for 2024-25
What major changes have been made in Capital Gain Tax?
- Short Term Capital Gains (STCG) has been increased from 15% to 20%.
- Long Term Capital Gains (LTCG) has been increased from 10% to 12.5%.
- Capital Gains Exemption Limit has been increased from Rs 1 lakh to Rs 1.25 lakh.
Future & Options :
- Increase in Securities Transaction Tax (STT) on Futures and Options.
- STT on Futures will increase from 0.0125% to 0.02%, while STT on Options will increase from 0.0625% to 0.10%.
- The increased STT rates shall be applicable from 01 October, 2024.
Removal of Indexation in Budget 2024-25 :
Tax rates on capital gains on the sale of long term held Real Estate have been lowered by the budget all the taxpayers will no longer receive the indexation benefits.
FAQs
Taxpayers earning up to Rs 3 lakh will pay NIL tax. On Rs 3 lakh to Rs 7 lakh income, 5% income tax would be imposed and Rs 7 lakh to Rs 10 lakh income would attract 10% tax.
Sectors such as manufacturing, infrastructure, MSME/mortgage credit and consumption will benefit greatly from the measures outlined in this budget.
Thank you very much sir.