Union Budget 2024: 10 Key Highlights

In her Budget 2024-25 speech, Finance Minister outlined nine key focus areas for the government. These include improving productivity and making the economy more resilient, creating jobs and enhancing skills, boosting both manufacturing and services, ensuring energy security and developing infrastructure. The government also aims to advance manufacturing further, implement land reforms, enhance urban development and push forward with next generation reforms. Essentially, the government is setting priorities to strengthen various parts of the economy and society, making sure they work together for overall growth and stability.

Top Highlights of the Union Budget 2024

Capital Spending: Government plans to spend ₹11.11 lakh crore on projects and infrastructure, which is 3.4% of the country's GDP.

Fiscal Deficit: Budget aims to keep the deficit at 4.9% of GDP down from 5.1% previously planned.

Highway Funding: ₹26,000 crore will be invested in highway projects in Bihar and ₹15,000 crore will be spent on developing infrastructure in Andhra Pradesh.

Support for State Infrastructure: ₹1.5 lakh cr will be provided as long term interest free loans to help state governments invest in infrastructure.

Startup Relief: Government is removing Angel Taxes that startups previously had to pay.

Corporate Tax Reduction: Tax rate for foreign companies is being cut from 40% to 35%.

Personal Income Tax Regime for 2024-25

1. Standard deduction under new tax regime has been raised to ₹75,000. It means you can deduct this amount from your taxable income reducing the taxes you need to pay.

2. Tax brackets have been updated and salaried employees will save up to ₹17,500 a year in taxes.

3. Deduction for family pensions has been increased from ₹15,000 to ₹25,000. It will help around 4 crore salaried individuals and pensioners.

4. ₹10 lakh crore has been allocated to PM Awas Yojana Urban 2.0 to help 1 crore poor and middle class people in urban areas.

5. A new phase of Pradhan Mantri Gram Sadak Yojana scheme will start to improve roads and connectivity in 25,000 rural areas that have grown in population.

6. Employers can now deduct 14% of their contributions to National Pension System up from 10%.

7. STT on trading in futures and options has gone up by 0.02% and 0.1%.

8. Money received from share buybacks will now be taxed for the recipient.

9. Maximum loan limit under the 'Tarun' category has been raised to ₹20 lakh from ₹10 lakh for small and medium businesses.

10. Tax Rates on Gains

• Short term gains from financial assets will be taxed at 20%.
• Long term gains from all types of assets will be taxed at 12.5%.
• Annual exemption limit for capital gains on financial assets has been increased to ₹1.25 lakh.