Budget 2024 Key Highlights, New Income Tax Slab Announced
The government aims to reach a deficit below 4.5 percent next year.
Union Minister of Finance Nirmala Sitharaman has proposed the second inning of Union Budget 2024-25 after Lok Sabha elections 2024. Here are some crucial highlights shared-
Finance Minister Nirmala Sitharaman has proposed a reduction in the basic customs duty on gold and silver to 6 percent and platinum to 6.4 percent. The government has increased the standard deduction limit to Rs 75,000, enabling the salaried class to save up to Rs 17,500 in taxes under the new regime. This change, up from Rs 50,000, was widely anticipated, with hopes initially set for a rise to Rs 1 lakh.
The government also announced that it will undertake a comprehensive review of the Income Tax Act to make it easy to read. Finance Minister Nirmala Sitharaman also said the government will come out with an SoP (standard operating procedure) for TDS defaults and simplify and rationalize the compounding of such offenses. She added that two tax exemption regimes for charitable trusts will be merged into one.
Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel
The government aims to reach a deficit below 4.5 percent next year.
Inflation continues to be low, stable, and moving towards the 4% target; Core inflation (non-food, non-fuel) at 3.1%.
On a sequential basis, the Prime Minister’s Package of 5 Schemes and Initiatives for employment, skilling, and other opportunities for 4.1 crore youth over 5 years was announced, fostering youth participation, consisting,
Scheme A - First Timers: One-month salary of up to `15,000 to be provided in 3 installments to first-time employees, as registered in the EPFO.
Scheme B - Job Creation in manufacturing: Incentive to be provided at specified scale directly, both employee and employer, to their EPFO contribution in the first 4 years of employment.
Scheme C - Support to employers: Government to reimburse up to `3,000 per month for 2 years towards EPFO contribution of employers, for each additional employee.
Read Also : NSIC enters into MoU with IDBI Bank to support MSMEs credit growth
20 lakh youth will be skilled over 5 years, and 1,000 industrial training institutes will be upgraded in hub and spoke arrangements.
New Scheme for Internship in 500 Top Companies to 1 crore youth in 5 years.
A total allocation of more than `3 lakh crore for schemes benefitting women and girls. The limit of Mudra loans under the ‘Tarun’ category is to be enhanced to `20 lakh from `10 lakh for those who have successfully repaid previous loans.
Changes in Personal Income Tax under the new tax regime
The standard deduction for salaried employees increased from Rs 50,000 to Rs 75,000, and the deduction on family pensions for pensioners increased from Rs 15,000/- to Rs 25,000/-. Meanwhile, the Salaried employee in the new tax regime stands to save up to Rs 17,500/- in income tax.
Read Also : SBI shares rises as Bank to approve fundraising on 16th July