Union Budget 2024 Live: Key Highlights From FM Nirmala Sitharaman’s Proposed Budget

Union Finance Minister Nirmala Sitharaman today presented the fiscal budget for the year 2024-25, marking her seventh consecutive budget under PM Narendra Modi-led NDA Government. The budget proposes significant changes in the tax structure, capital gains, customs duties, and allocations for various states and sectors.

Here are the key highlights from her speech:

Tax Structure Revamp:

The revised tax structure promises significant savings for taxpayers, with a total reduction of Rs 17,500.

The new rates are:

Additionally, the standard deduction under the new tax regime has been increased from Rs 30,000 to Rs 75,000, providing further relief to taxpayers.

Changes in Capital Gains Taxes

The budget proposes adjustments to capital gains taxes:

• Short-term gains on specified financial assets will now be taxed at 20%, up from 15%, while other assets remain unaffected.

• Long-term gains tax has been raised to 12.5% from 10%.

• The exemption limit on capital gains for certain listed financial assets is increased to Rs 1.25 lakh annually.

• Long-term classification for listed financial assets is set at over one year; for unlisted and non-financial assets, it’s over two years.

• Unlisted bonds, debentures, debt mutual funds, and market-linked debentures will be taxed regardless of the holding period.

Abolishing ‘Angel Tax’ to Foster Innovation

In a bid to bolster start-ups and innovation, the budget proposes the abolition of the ‘angel tax’ across all investor classes, aiming to support burgeoning enterprises and technological advancements.

Customs Duty Adjustments

The budget also includes significant reductions and exemptions in customs duties:

• Duties on gold and silver are reduced to 6%

• Duties on Platinum to 6.4%

• Lithium, copper, and cobalt are exempt from customs duties.

• The basic customs duty on spandex yarn is cut from 7.5% to 5%.

• Customs duties on medicines, particularly three additional cancer drugs (Trastuzumab Deruxtecan, Osimertinib, and Durvalumab), are fully exempted.

• Duty on mobile devices and accessories is reduced to 15%, while duties on plastic products are increased.

Regional and Infrastructure Development

Substantial budget allocations have been made for infrastructure and social development:

• Andhra Pradesh receives funds for social and infrastructure projects, including a backward region grant for three districts and a Rs 15,000 crore package for Amaravati’s development.

• Bihar has allocated Rs 26,000 crore for roads and expressways, along with funds for temple development.

• A significant investment in the Vizag-Chennai Industrial Corridor is also announced.

Other announcements:

• India Post Payments Bank will see the establishment of 100 new branches in the North East.

• Twelve new industrial parks will be created.

• Rs 10 trillion is allocated to provide 1 crore houses to the urban poor and middle class.

• A critical mineral mission and auction of the first offshore mining blocks are introduced.

• The Mudra loan limit is doubled to Rs 20 lakh for those who have successfully repaid under the TARUN category.

• Three new employment-linked schemes are proposed with a Rs 2 trillion allocation, aimed at job creation for 20 lakh youth and increasing women’s participation in the workforce.

• Rs 1.52 trillion is allocated to agriculture and allied sectors, with new high-yielding and climate-resilient crop varieties to be released.

• Rs 3 trillion is earmarked for women-centric schemes.