WATCH | Budget 2024 Key Highlights: Nirmala Sitharaman Presents The Union Budget Of India

Religious tourism got a boost as announced by Finance Minister Nirmala Sitharaman. She said Nalanda will be supported as a tourist story, Odisha and Bihar's temples and monuments will be promoted to make them a tourism destination

Nirmala Sitharaman said that the government will provide fiscal support to undertake urban and rural land reforms.

The government will develop a taxonomy for climate finance, which will help with green transportation for the country and will support the securing of the country's climate commitment.

FM Nirmala Sitharaman announced that the government will streamline and simplify FDI regulations to promote investments. Moreover, the adoption of rupee in international trade and investments shall be promoted, the FM added.

Finance Minister Nirmala Sitharaman announced that the NPS issue will be resolved while maintaining fiscal prudence, while praising the New Pension Scheme

The government announced budget estimates for the current financial year. It is as follows:

• Total receipts: over Rs 32.07 lakh crore.

• Total Expenditure: over Rs 48.21 lakh crore

• Tax Receipts: 25.83 lakh crore

• Fiscal Deficit: 4.9%

In budget speech, Finance Minister Nirmala Sitharaman said that the government will take steps to reduce GST complications.

In order to support local manufacturing and improve the competitiveness of Indian products, FM Sitharaman has proposed decreasing basic customs duty (BCD) on mobile phones, PCBAs and chargers to 15 per cent.

Additionally, 25 critical minerals have been fully exempted from BCD to increase the country’s access to these valuable minerals.

BCD has also been reduced for X ray tubes and flat panel detectors in medical equipment.

FM Nirmala Sitharaman in her 7th consecutive budget speech announced internship opportunity in top 500 companies for nearly 1 crore youth.

The duration of internship will be 12 months to learn skills needed to understand the business landscape. A stipend of Rs 5000 will also be given.

“The government will launch a scheme to provide internship opportunities to 1 crore youth in 500 top companies with Rs 5000 per month as internship allowance and one-time assistance of Rs 6000,” announced FM Sitharaman in her Budget Speech.

Finance Minister Nirmala Sitharaman said that the limit of MUDRA loans will be increased to Rs 20 lakh from the current Rs 10 lakh for those who have availed and successfully repaid loans under the TARUN category

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The government will undertake a comprehensive review of Income Tax Act, 1967 which will be completed within 6 months. The government will simplify the direct tax regime and will also decriminalise certain TDS defaults.

A proposal has also been made to provide standard procedures for TDS delays. TDS on e-commerce operations will be reduced from 1 to 0.1%.

20% TDS rate on repurchase of units by mutual funds, or UTI is being withdrawn.

FM Sitharaman announced that short term gains across financial and non-financial assets will be subject to 20 per cent tax.

For long term gains, financial and non-financial assets will attract 12.5 per cent tax which was taxed at 10 per cent earlier.

However, exemption for long terms gains have been increased to Rs 1.25 lakh per year from earlier Rs 1 lakh.

In order to boost the start-up ecosystem, the government has proposed to abolish the angel tax.  

The term "angel tax" describes the income tax that the government imposes on funds raised by start-ups or unlisted businesses if their valuation surpasses their fair market value. Since the tax mostly affects angel investors, it is referred to as an angel tax.

For those opting for the new tax regime, the standard deduction for salaried employees is projected to be increased from Rs 50,000 to Rs 70,000.

Under the New Tax Regime, the Tax slabs are as follows:

• 0-3L: Nil

• 3L-7L: 5%

• 7L-10L: 10%

• 10L-12L: 15%

• 12L-15L: 20%

• Above 15L: 30%

The government has announced a reduction in the corporate tax rate for foreign companies, lowering it from 40% to 35%. Sitharaman stated that this move aims to encourage the inflow of foreign capital into the country.

• Angel Tax has been abolished which comes as a major boost for start ups

• Government announces five schemes to promote employment and skilling with a capital outlay of Rs 2 lakh crore

• PM Suryaghar Muft Bijli Yojana launched

• Urban housing outlay of ₹10 lakh crore announced

• Andhra and Bihar receive special support from the government

• Long term gains tax on all financial and non-financial assets raised to 12.5%

• Short term gains tax on specified financial assets raised to 20% from 15%

• The TDS rate on e-commerce operators is to be reduced from 1% to 0.1%

• Standard Deduction increased under New Tax Regime