Finance Minister Nirmala Sitharaman Revises Tax Slabs Under New Tax Regime
On July 23, Finance Minister Nirmala Sitharaman delivered her historic seventh consecutive Union Budget speech for the fiscal year 2024-25, setting a new record in the Indian Parliament. She introduced significant changes, including increased standard deductions and revised tax rates for salaried individuals under the new tax regime. Additionally, customs duties on various goods such as gold, silver, and mobile phones were announced.
Revised Tax Rates Under New Tax 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%
Key Highlights:
Employment and Skilling:
- Five schemes targeting 4.1 crore youth over five years with a central outlay of ₹2 lakh crore.
- Comprehensive internship scheme for one crore youth in top companies over five years.
- Employment-linked incentives, including one month’s wage support for first-time employees.
- Women-specific skilling programs to increase workforce participation.
MSME and Manufacturing Support:
- Special focus on MSMEs and the manufacturing sector.
- Credit guarantee scheme and term loans for machinery purchases.
- Technology support package for MSMEs.
- SIDBI to open 24 new branches to serve MSME clusters.
Financial Initiatives:
- Mudra loan limit increased from ₹10 lakh to ₹20 lakh for previous borrowers.
- Financial support for higher education loans up to ₹10 lakhs for domestic institutions.
- Integrated technology system for the Insolvency and Bankruptcy Code (IBC).
Agriculture and Rural Development:
- ₹2.66 lakh crore allocated for rural development.
- Focus on transforming agricultural research to improve productivity and develop climate-resilient crop varieties.
- Initiative to introduce one crore farmers to natural farming over two years.
Infrastructure and Regional Development:
- Rental housing in PPP mode for industrial workers.
- Special financial support of ₹15,000 crore for Andhra Pradesh.
- New airports, medical facilities, and sports infrastructure planned for Bihar.
Economic Outlook:
- Inflation moving towards the 4% target.
- India’s economic growth highlighted as a “shining exception.”
- Emphasis on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and the auto sector.
Nine Priority Areas:
- Agriculture
- Employment
- Inclusive Development
- Manufacturing and Services
- Urban Development
- Energy
- Infrastructure
- Innovation and R&D
- Next Generation Reforms
Women-Led Development:
- Over ₹3 lakh crore allocated for schemes benefiting women and girls.
Social Welfare:
- Extension of PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) for five years, benefiting over 80 crore people.
Digital and Technological Advancements:
- Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance.
Stay updated on the latest news on Budget 2024, including the new income tax slab, impacts on the share market, key highlights, and corporate reactions.