#Budget2024 : New Tax Regime ; Salaried Employees May Save Up To Rs 17,500 ; Angel Tax Abolished ; Custom Duties On Gold, Silver Reduced

Picture : ANI/ X

Finance Minister Nirmala Sitharaman presented her 7th straight Budget that would lay a roadmap for Viksit Bharat (developed India) by 2047, while giving a glimpse of 10 years’ performance.

Prime Minister Narendra Modi-led government’s first budget of the third term in office is widely expected to reinforce post-pandemic fiscal consolidation efforts while pursuing the long-term objectives of Vikshit Bharat.

Here are the main take aways From Finance Minister Speech :

In sops for the middle class, Finance Minister Nirmala Sitharaman on Tuesday hiked standard deduction by 50 per cent to Rs 75,000 and tweaked tax slabs under the new income tax regime to provide more money in the hands of salaried class with a view to boost consumption.

She said salaried employees in the new tax regime could save up to Rs 17,500 in income tax annually following the changes announced in the Budget.

The standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000 annually. Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000. “This will provide relief to about four crore salaried individuals and pensioners,” Sitharaman said in her Budget speech.

In the last fiscal, more than two-thirds individual taxpayers have availed the new personal income tax regime. Over 8.61 crore I-T returns were filed in 2023-24 fiscal. The new tax slabs under the new income tax regime will be effective from April 1, 2024. (Assessment Year 2025-26).

Sitharaman said income of up to Rs 3 lakh will continue to be exempted from income tax under the new regime. As per the proposal, a 5 per cent tax will be levied on income between Rs 3-7 lakh, 10 per cent between Rs 7-10 lakh, 15 per cent for Rs 10-12 lakh. However, 20 per cent tax will continue to be levied on income between Rs 12-15 lakh and 30 per cent for income above Rs 15 lakh. Under the existing new I-T regime, a 5 per cent tax is levied on income between Rs 3-6 lakh, 10 per cent for income between Rs 6-9 lakh.

Mobile Phones to get cheaper, as FM Nirmala Sitharaman reduces basic customs duty to 15%.

For those opting for the new tax regime, the standard deduction for salaried employees to be increased from Rs 50,000 to Rs 75,000.

“Monetary limit for filing Tax appeals increased to Rs 60 lacs for ITAT, Rs 2 crores for High Courts and Rs 5 crores for Supreme Court…I propose to abolish the Angel tax abolished for all classes of investors. Corporate tax rate to be reduced on foreign companies from 40 to 35 per cent…”

“A comprehensive review of the customs duty structure over the next 6 months. TDS rate on e-commerce to be reduced to 0.1%. I propose that two tax exemption regimes for charities merge into one. I propose to decriminalize TDS delay up to the filing of tax date…”

internship with Rs 5000 monthly allowance announced for 1 crore youth

I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months.”

“I propose to reduce customs duties on gold and silver to 6% and 6.5% on platinum.”

“I propose to reduce the BCD on mobile phones and mobile PCBS and mobile chargers to 15%.”

“Powering Innovation, Research & Development: Anusandhan National Research Fund will be set up for basic research and prototype development. Financing pool of Rs 1 lakh crore to spur private sector-driven research and innovation at commercial scale will also be done.”

“The government has proposed to set up a venture capital fund of ₹1000 crore for the space economy.”

Tourism Push : “Tourism has always been a part of our civilisation. Our efforts to position India as a global destination will also create jobs and unlock opportunities in other sectors. I propose Vishnupath temple at Gaya, and Mahabodhi temple in Bodhgaya are of immense spiritual importance. We will develop corridors there on the model of the successful Kashi Vishwanath corridor to make them a world-class tourist destination. A comprehensive development initiative for Rajgir and Nalanda, in Bihar will be pursued. We will support tourism in Odisha that has scenic beauty, temples, craftsmanship, natural landscapes, wildlife sanctuaries and pristine beaches.”

Finance Minister announces special financial support to Andhra Pradesh, Rs 15000 cr allocated for Capital

“PM Gram Sadak Yojana Phase 4 will be launched to provide all-weather roads to 25,000 rural habitats…Bihar has frequently suffered from floods. Plans to build flood control structures in Nepal are yet to progress. Our government will provide financial support with an estimated cost of Rs 11,500 crore…Assam, which grapples with floods every year, will receive assistance for flood management and related projects. Himachal Pradesh, having suffered extensive losses due to floods, will also receive support for reconstruction through multilateral assistance. Additionally, Uttarakhand, which faced significant damage from landslides and cloudbursts, will be provided with necessary assistance…”