Highlights of Union Budget 2024 by FM Nirmala Sitharaman

Taxation and Income

1. Capital Gains Taxes Overhaul:

   • Short-term Gains: 20% on all financial assets.
   • Other Assets: Remains unchanged.
   • Long-term Gains: 12.5% on all assets.
   • Exemption: Profits up to Rs 1.25 lakh per year.

2. Standard Deduction: Increased from Rs 50,000 to Rs 75,000.

3. Family Pension Deduction: Raised from Rs 15,000 to Rs 25,000.

4. New Income Tax Slabs (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): Increased to 0.2% on Futures and Options (F&O).

Fiscal Measures and Capital Expenditure

1. Capital Expenditure (Capex):

   • Maintained at Rs 11.11 lakh crore (3.4% of GDP).
   • Historical Capex Figures:
     • 2019: Rs 3.1 lakh crore
     • 2021: Rs 4.4 lakh crore
     • 2022: Rs 5.5 lakh crore
     • 2023: Rs 7.5 lakh crore
     • 2024: Rs 10 lakh crore
     • 2025: Rs 11.1 lakh crore

2. Fiscal Deficit:

   • Lowered to 4.9% of GDP.
   • Market borrowing remains at Rs 14.13 lakh crore.
   • Fiscal deficit for FY25 targeted at 4.9% (down from 5.1% in interim budget).
   • Aim to achieve a fiscal deficit below 4.5% by FY26.

3. Basic Customs Duty (BCD):

   • Reduced on mobile phones and chargers to 15%.

Employment, Skilling, and MSMEs

1. Employment and Skilling Initiatives:

   • Central outlay of Rs 2 lakh crore over 5 years to benefit 4.1 crore youth through five schemes.
   • Incentives for job creation, skilling, and MSME support.

2. Mudra Loans:

   • Increased limit from Rs 10 lakh to Rs 20 lakh for those who have availed and repaid previous loans.
   • New mechanism for facilitating continuation of bank credit to MSMEs during stress periods.

3. Working Women Hostels:

   • Set up to promote women's participation in the workforce.

4. Prime Minister's Package:

   • Five schemes to facilitate employment, skilling, and opportunities for youth.
   • Allocation of Rs 2 lakh crore over five years for these initiatives.

5. PM Garib Kalyan Ann Yojna:

   • Extended for 5 years, benefiting 80 crore people.

6. PM Vishwakarma Scheme:

   • Support for artisans and craftspeople announced and launched in 2023.

7. Family Participation and Support:

   • Government to provide one month PF contribution for 30 lakh youth entering the job market.
   • Three employment-linked schemes to be launched.

8. E-vouchers and Skilling Loans:

   • Direct e-vouchers for 1 lakh students annually, with a 3% interest subvention on loans up to Rs 10 lakh.
   • Revised model skilling loan scheme to facilitate loans up to Rs 7.5 lakh.

9. Technology Centers:

   • 1,000 ITIs to be upgraded in a hub-and-spoke model.

Rural Development and Agriculture

1. Rural Development Allocation:

   • Rs 2.66 lakh crore provision for rural development.
   • Phase IV of PM Gram Sadak Yojana for 25 rural habitations.

2. Agriculture and Allied Sectors:

   • Rs 1.52 lakh crore allocated.
   • 1 crore farmers to be initiated into natural farming with certification and branding support.
   • 10,000 bio-input resource centers to be established.
   • New climate-resilient seeds to be developed.
   • Funds for developing climate-resilient seeds.

3. PM Awas Yojana-Urban 2.0:

   • Housing for 1 crore urban poor and middle-class families.
   • Central assistance of Rs 2.2 lakh crore for urban housing over the next five years.

4. Investment in Power Projects:

   • New 2400 MW power plant at Pirpainti, Bihar, costing Rs 21,400 crore.
   • Pumped storage policy for electricity storage and renewable energy integration.

Industrial and Infrastructure Development

1. Industrial Development:

   • Industrial node at Gaya on Amritsar Kolkata Industrial Corridor.
   • Development of investment-ready "plug and play" industrial parks near 100 cities.
   • 12 industrial parks sanctioned under National Industrial Corridor Development Programme.

2. Technology and Ease of Doing Business:

   • Customs duties on 25 critical minerals adjusted.
   • Jan Vishwas Bill 2.0 to enhance ease of doing business.
   • States to be incentivized for implementing business reforms and digitalization.

Social Welfare and Women's Development

1. Schemes for Women:

   • Rs 3 lakh crore allocated for schemes benefiting women and girls.
   • Female Labour Force Participation Rate rose to 37% in 2022-2023.
   • Women hold 55.6% of PM Jan Dhan Yojana accounts.
   • 68% of loans under PM Mudra Yojana sanctioned to women.
   • 77.7% women beneficiaries under Stand Up India.

2. Pradhan Mantri Janjatiya Unnat Gram Abhiyan:

   • Improving socio-economic conditions of tribal communities.
   • Saturation coverage for tribal families in 63,000 villages, benefiting 5 crore people.

Education and Research

1. Education and Skilling:

   • Rs 1.48 lakh crore allocated for education, employment, and skilling.
   • Model skilling loan scheme revised to support 25,000 students annually.

2. Research and Development:

   • Anusandhan National Research Fund to be set up.
   • Rs 1 lakh crore financing pool for private sector-driven research and innovation.
   • Venture capital fund of Rs 1,000 crore for the space economy.

Financial Sector and Governance

1. Financial and Governance Reforms:

   • Simplification and rationalization of GST tax structure.
   • Reforms in land administration, urban planning, and building bylaws.
   • Unique Land Parcel Identification Number for rural lands.
   • Land registry to be established in rural areas.

2. Debt and Bankruptcy:

   • Strengthening of debt recovery tribunals.
   • Additional tribunals for speeding up recovery under the Insolvency & Bankruptcy Code (IBC).
   • Integrated technology platform for improving IBC outcomes.

Special Focus Areas

1. Special Financial Support:

   • Andhra Pradesh Reorganisation Act: Rs 15,000 crore arranged for FY24, with additional future amounts.
   • Flood management support for Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim.
   • Nalanda University to be revived and developed as a tourist center.

2. Cultural and Historical Initiatives:

   • Vishnupad Temple Corridor and Mahabodhi Temple Corridor to be transformed into world-class destinations.
   • Financial assistance for veteran artists aged 60 years and above.
3. New TDS section

   New TDS section 194T inserted

   10% TDS on payment of salary, bonus, interest, commission by a Firm to its partners w.e.f 01/04/25

By focusing on these comprehensive measures, the budget aims to bolster economic growth, create jobs, support MSMEs, enhance rural and urban infrastructure, and promote social welfare and inclusive development across various sector