Union Budget 2024 Highlights: Things to Expect from Union Budget 2024

Union Budget 2024

Budget Updates

Jul 23, 2024 12:43 PM IST
Bihar in focus
Loans from multi-lateral institutions to be expedited
Jul 23, 2024 12:40 PM IST
PM Awas Yojna
Allocation for 3 crore additional houses in rural and urban areas under PM Awas Yojana will be made as and when required
Jul 23, 2024 12:38 PM IST
Tax slab updates
Updates in the New tax regime: Standard deduction increased from ₹50,000 to ₹75,000; Deduction on family pension for pensioners from ₹15,000 to ₹25,000; Relief to 4 crore salaried individuals and pensioners Updated tax rates: [₹0-3 lakh - Nil; ₹3-7 lakh - 5%; ₹7-10 lakh - 10%; ₹10-12 lakh - 15%; ₹12-15 lakh - 20%; Above ₹15 lakh - 30%] Based on these changes a salaried person will end up saving ₹17,500 on income tax
Jul 23, 2024 12:29 PM IST
Capital Gains tax simplified
Short-term gains on certain financial assets shall attract a tax rate of 20% while that on other financial assets and non-financial assets shall continue to attract the applicable tax grate; Long-term gains on all financial assets and non-financial assets will attract a tax rate of 12.5%; increase the limit of exemption of capital gains on certain financial assets to ₹1.25 lakh per year
Jul 23, 2024 12:24 PM IST
Direct tax updates
5% TDS payment to be merged into 2% TDS rate and 20% TDS rate on repurchase of units by mutual funds or UTI to be withdrawn
Jul 23, 2024 12:18 PM IST
Seafood industry, leather and textile industry
Exempt customs on shrimp and fish feed; exempted goods list to be updated for manufacturing of leather items for export
Jul 23, 2024 12:14 PM IST
Gold, silver customs duty
Reduce customs duty on gold and silver to 6% and 6.4% for platinum from 15% earlier
Jul 23, 2024 12:11 PM IST
Indian mobile industry has matured, says FM
Reduce the BCD on mobile and other mobile-related items
Jul 23, 2024 12:06 PM IST
FM reiterates fiscal consolidation plan
Fiscal deficit of FY25 at 4.9% of the GDP; to stick to fiscal consolidation plan as announced earlier
Jul 23, 2024 12:03 PM IST
Push for Indian rupee usage globally
FDI and overseas investment to be simplified to nudge prioritising the usage of Indian rupee
Jul 23, 2024 12:02 PM IST
Financial sector in focus
To come up with a financial sector vision and strategy plan
Jul 23, 2024 11:59 AM IST
Interest-free loan for states
FM to allocate significant part of 50-year interest-free loan for states for measures including land-related reforms
Jul 23, 2024 11:58 AM IST
Space sector in focus
Venture capital fund of ₹1,000 crore for space sector; targets 5X growth in space sector in 10 years
Jul 23, 2024 11:55 AM IST
Tourism sector receives a huge boost
Tourism support for Orissa and Bihar; Nalanda to be developed as a tourist hub
Jul 23, 2024 11:53 AM IST
Assam, Himachal Pradesh in focus
Assam and Himachal Pradesh to receive assistance for annual floods and landslides
Jul 23, 2024 11:51 AM IST
Bihar floods assistance
Allocates ₹11.11 lakh crore for flood and irrigation projects to mitigate floods in Bihar
Jul 23, 2024 11:49 AM IST
Infrastructure in focus
Endeavour to maintain strong fiscal support for the next 5 years; allocation at ₹11.11 lakh crores same as Interim budget
Jul 23, 2024 11:42 AM IST
Urban development in focus
Cities to be developed as growth hubs especially to develop peri-urban areas; 14 cities with population of over 30 lakh to have transit-oriented development
Jul 23, 2024 11:41 AM IST
Rural development allocation increased by 40% YoY
Proposal to allocate ₹1.07 lakh crore for rural development, which is a 40% increase YoY
Jul 23, 2024 11:39 AM IST
Improving industrial workers' working condition
Rental housing with dormitory type accommodation for industrial workers will be facilitated in PPP mode
Jul 23, 2024 11:37 AM IST
Manufacturing and services scheme
To promote manufacturing and services-scheme to cover 1 crore people allowance of ₹5,000 per month (up to 12 months) to be given, one-time ₹6,000
Jul 23, 2024 11:35 AM IST
Mudra Loans limit enhanced
Limit under Mudra Loans have been enhanced from ₹10 lakhs to ₹20 lakhs
Jul 23, 2024 11:33 AM IST
Budget 2024 special focus on MSME and manufacturing
Special attention to MSME and manufacturing particularly labour-intensive organisations; credit guarantee schemes for facilitating loan without collateral or guarantee for buying machinery and equipment, public sector banks to develop new credit assessment method to be developed based on digital footprint; credit support to MSMEs during stress period while being in NPA status
Jul 23, 2024 11:28 AM IST
Northeast in Focus
Over 1,000 India Post payment bank branches to be set up in Northeast India
Jul 23, 2024 11:26 AM IST
Andhra Pradesh in focus
FM allocates ₹15,000 crore with additional amount in future as and when required
Jul 23, 2024 11:23 AM IST
Development of industrial corridor
Amritsar-Kolkata industrial corridor to have an industrial node at Gaya, Bihar
Jul 23, 2024 11:20 AM IST
FM announces employment-linked incentive scheme
Based on enrollment into EPFO, first-time employees to get reimbursement and direct benefit transfer, employers to get EPFO contribution reimbursement
Jul 23, 2024 11:17 AM IST
Agri & allied sectors benefit
₹1.52 trillion provision for agri and allied sectors
Jul 23, 2024 11:16 AM IST
Shrimp farming will benefit
Financing for shrimp farming will be facilitated
Jul 23, 2024 11:14 AM IST
More focus on agricultural sector
10 million farmers will be initiated into natural farming; Production focus on oilseeds, lentils
Jul 23, 2024 11:12 AM IST
Journey towards Vikasit Bharat
Productivity and resilience in agriculture; To review agri-research for new climate-resilient crops that will involve private sector through challenge mode
Jul 23, 2024 11:09 AM IST
Focus on employment and skilling under new schemes
Opportunities for over 4.1 crore youth, 5 schemes for a period of 5 years with an outlay of ₹2 lakh crore
Jul 23, 2024 11:07 AM IST
India's inflation under control
India's inflation rate continues to be low and slowly moving towards the target of 4%
Jul 23, 2024 11:00 AM IST
Union Budget 2024 LIVE
FM Nirmala Sitharaman to begin Budget presentation shortly

Did you know?

The word Budget has its roots in the French word “bougette”, which means a small leather bag.

Budget jargons simplified

Populist budget

A fiscal plan that focuses more on putting money in the hands of citizens through handouts, subsidies and tax breaks or cuts. This entails higher spending on revenue items and focuses on short-term benefits.

Sectors in Focus

Open your Free Demat Account

Articles

Tax Reforms and incentives for businesses in Union Budget 2024

The Union Budget 2024 contained many measure that are focused towards providing incentives for businesses, and tax reforms. These measures can provide the required push to the private sector to kickstart their stalled investments to boost economic and job growth. Some measures are small, but others can have far reaching consequences. Let us look at some of the tax reforms and how they could impact businesses.

Government’s Employment Linked Incentive Schemes Under Budget 2024

Union Budget 2024 laid a great emphasis on employment creation. Part of the Prime Minister’s five packages to boost economic growth, one set of schemes focus on generating employment. The focus is upskilling young people, and providing incentives to employers to hire more people. There are a total of three schemes that are part of employment-linked incentive schemes. Here are the the details—

Union Budget 2024: Employment-Linked Incentive Schemes Worth ₹2 Lakh Crore to Boost Job Creation

The government’s focus on economic growth was led by rapid infrastructure growth, and steadily raised the capital expenditure at the central level and through constant capital support to states through a 50-year loan for capex projects. But this hasn’t brought the desired results in terms of job creation. To solve for this, and to spur consumption growth, the government announced a slew of measures to promote job-intensive economic growth.

Understanding Mutual Funds Taxation Under Budget 2024

The Union Budget 2024 had a full set of changes introduced on how income from mutual funds, ETFs, and Fund of Funds are taxed under the head capital gains. Apart from trying to streamline the tax rates, the Union Budget 2024’s announcements also made tweaks to last year’s tax rules that were unfavourable to ETFs and Fund of Funds. These changes have streamlined the taxation of mutual funds and other fund investments a fair bit. Let us look at what the income tax regime for mutual funds now looks like.

STT Hike on F&O Explained

The Union Budget 2024 proposes to hike securities transaction tax (or STT) on futures and options. There was anticipation among traders that there would be other steps taken to reduce the growth in volumes of future and options in India. But the government has refrained from taking any steps like re-categorising trading income and levying a higher tax rate, among reported moves. So let us look at how the higher STT will work.

How Capital Gains Tax Rules Work for Different Investments in India

Budget 2024 initiated a complete revamp of the capital gains tax regime in India by streamlining the holding period rules and the tax rates across the board. Finance Minister Nirmala Sitharaman also proposed to remove indexation benefit that was earlier available for certain assets sold like gold, unlisted equity shares, property, among others. All the changes in India’s capital gains regime will be applicable from July 23, 2024, which includes the option of availing indexation benefit for calculating indexed cost of acquisition. The cost acquisition for assets sold before July 23, 2024, will be computed by indexing the cost using a cost inflation index to calculate long term capital gains on certain assets. Those assets sold on or after July 23, 2024, will not get the benefit of indexation while calculating cost of acquisition to be used in calculation of long-term capital gains.

Upcoming Union Budget: Sector in Focus – Infrastructure

As we approach the announcement of the Union Budget later this month, the infrastructure sector is at the forefront of discussions. The interim Budget presented earlier this year underscored the government's commitment to enhancing infrastructure development, and Union Budget 2024 is expected to build upon those foundations. Recognising its critical role in economic growth and sustainability, the upcoming Budget is anticipated to include robust allocations for key infrastructure projects, aiming to modernise transportation networks, boost urban development, and improve connectivity across the country.

Upcoming Union Budget Focus on Affordable Housing Sector

Learn about the significant allocations to the Pradhan Mantri Awas Yojana (PMAY), tax benefits, and public-private partnerships aimed at expanding access to affordable housing. Understand how these measures support the 'Housing for All' mission and present investment opportunities in the real estate sector. One of the first decisions that the Union Cabinet took after the new government took office in June 2024 was to approve a proposal to build 3 crore new houses under the Pradhan Mantri Awas Yojana (PMAY). This has set the tone for the full Union Budget 2024 in July, where the expectation is that there will be many measures take to promote affordable housing across India. This continues from the Interim Budget of 2024-25 ahead of the general elections when the Finance Minister Nirmala Sitharaman had reiterated the government’s commitment to addressing the need for affordable housing, a critical component of the government’s broader social welfare agenda. The focus continues to be on expanding access to housing for low and middle-income groups, promoting urban development, and driving economic growth through increased housing investments.

Upcoming Union Budget Focus on Defence Sector

As India awaits the first Union Budget of the NDA 3.0 government, the defence sector remains a critical area of focus. Several defence stocks have seen a major rally in recent times with many of them reaching their 52-week highs. This attention is driven by recent budgetary allocations, evolving geopolitical challenges, and long-term strategic goals. The impact on defence stocks has been profound, with the Nifty India Defence index delivering an amazing 74.44% returns YTD.

Optimizing Your Investment Strategy for Union Budget 2024

As the Union Budget 2024-25 approaches, speculations are rife about its potential impact on various sectors, including personal finance. Investors and traders often make decisions based on these speculations, hoping to capitalise on anticipated market movements. However, planning investments solely on such speculations can be risky and may lead to undesirable outcomes. This article explores the speculations surrounding the budget, their implications for investors, and why a cautious, informed approach is crucial.

Upcoming Union Budget: Sector in Focus – Renewable Energy

India has an ambitious renewable energy ambition, with nearly 500 GW of installed renewable and non-conventional sources by 2030. The upcoming Union Budget is expected to follow in the footsteps of the announcements made in the interim budget in February. There was a significant emphasis on the renewable energy sector, reflecting the government's commitment to sustainable development and the goal of achieving net-zero emissions by 2070. The focus on clean energy amidst increasing global climate change concerns and India's strategic drive to reduce dependency on fossil fuels is expected to continue in the upcoming Union Budget.

Budget Updates

Bihar in focus

PM Awas Yojna

Tax slab updates

Capital Gains tax simplified

Direct tax updates

Seafood industry, leather and textile industry

Gold, silver customs duty

Indian mobile industry has matured, says FM

FM reiterates fiscal consolidation plan

Push for Indian rupee usage globally

Financial sector in focus

Interest-free loan for states

Space sector in focus

Tourism sector receives a huge boost

Assam, Himachal Pradesh in focus

Bihar floods assistance

Infrastructure in focus

Urban development in focus

Rural development allocation increased by 40% YoY

Improving industrial workers' working condition

Manufacturing and services scheme

Mudra Loans limit enhanced

Budget 2024 special focus on MSME and manufacturing

Northeast in Focus

Andhra Pradesh in focus

Development of industrial corridor

FM announces employment-linked incentive scheme

Agri & allied sectors benefit

Shrimp farming will benefit

More focus on agricultural sector

Journey towards Vikasit Bharat

Focus on employment and skilling under new schemes

India's inflation under control

Union Budget 2024 LIVE

Sectors in Focus

Low-Cost Housing

Infrastructure

Defence

Renewables

Articles

Tax Reforms and incentives for businesses in Union Budget 2024

Government’s Employment Linked Incentive Schemes Under Budget 2024

Union Budget 2024: Employment-Linked Incentive Schemes Worth ₹2 Lakh Crore to Boost Job Creation

Understanding Mutual Funds Taxation Under Budget 2024