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.
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Individual Income Tax Regime for 2024-25
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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.
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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.
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