Key Areas |
Details |
Economic Outlook |
India continues to be a shining exception in global economic growth despite policy uncertainties. Inflation remains low and stable, moving towards a 4% target. Core inflation (non-food, non-fuel) is at 3.1%. |
Interim Budget Focus |
Emphasis on four major castes: ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth), and ‘Annadata’ (Farmer). |
Budget Theme |
Focus on employment, skilling, MSMEs, and the middle class. Prime Minister’s package includes 5 schemes for 4.1 crore youth over 5 years with a Rs 2 lakh crore outlay. Rs 1.48 lakh crore allocated for education, employment, and skilling. |
Budget Priorities |
The budget prioritizes 9 key areas for generating opportunities and development: |
1. Productivity and Resilience in Agriculture |
Comprehensive review of agriculture research, release of 109 high-yielding and climate-resilient crop varieties, initiation of 1 crore farmers into natural farming, establishment of 10,000 bio-input resource centers, strengthening of pulses and oilseeds production, and implementation of Digital Public Infrastructure in agriculture. Provision of Rs 1.52 lakh crore for agriculture and allied sectors. |
2. Employment & Skilling |
Implementation of 3 Employment Linked Incentive schemes, establishment of working women hostels, and creches, launch of a centrally sponsored skilling scheme for 20 lakh youth over 5 years, revision of the Model Skill Loan Scheme, and financial support for loans for higher education. |
3. Inclusive Human Resource Development and Social Justice |
Stepping up support for craftsmen, artisans, self-help groups, scheduled caste, schedule tribe, and women entrepreneurs. Launch of Purvodaya for the development of the eastern region and Pradhan Mantri Janjatiya Unnat Gram Abhiyan for tribal communities. Provision of ?2.66 lakh crore for rural development. |
4. Manufacturing & Services |
Special attention to MSMEs, enhancement of Mudra loan limits, support for setting up food irradiation and quality testing units, establishment of E-Commerce Export Hubs, and launch of an internship scheme in top companies. |
5. Urban Development |
Addressing housing needs through PM Awas Yojana Urban 2.0, promotion of water supply and sanitation projects, and support for developing street food hubs under PM SVANidhi. |
6. Energy Security |
Launch of PM Surya Ghar Muft Bijli Yojana for rooftop solar plants, and emphasis on nuclear energy. |
7. Infrastructure |
Continued investment in infrastructure with an allocation of Rs 11,11,111 crore for capital expenditure, launch of Phase IV of PMGSY, and support for irrigation and flood mitigation projects. |
8. Innovation, Research & Development |
Operationalization of Anusandhan National Research Fund, and setting up of a venture capital fund for the space economy. |
9. Next Generation Reforms |
Formulation of an Economic Policy Framework, labour-related reforms, development of a taxonomy for climate finance, simplification of FDI and overseas investment rules, launch of NPS Vatsalya, and review of the New Pension Scheme. |
Key Areas |
Details |
|
Direct Taxes |
Comprehensive review of direct and indirect taxes, rationalization of GST tax structure, review of the Custom Duty rate structure, and simplification of the Income Tax Act. |
|
Standard Deduction |
Increase from Rs 50,000 to Rs 75,000 for salaried employees under the new tax regime. Enhancement of deduction on family pension from Rs 15,000 to Rs 25,000. |
|
New Tax Regime Rates |
Income Slabs |
Tax Rate |
|
0 – 3 Lakh rupees |
NIL |
|
3 – 7 Lakh rupees |
5% |
|
7 – 10 Lakh rupees |
10% |
|
10 – 12 Lakh rupees |
15% |
|
12 – 15 Lakh rupees |
20% |
|
Above 15 Lakh rupees |
30% |
Investment and Start-ups |
Abolition of angel tax for all investors, simpler tax regime for foreign shipping companies, benefits for foreign mining companies selling raw diamonds, and reduction of corporate tax rate on foreign companies from 40% to 35%. |
|
Charities and TDS |
Merging of two tax exemption regimes for charities, rationalization of TDS rate structure, and decriminalization of TDS payment delays. |
|
Capital Gains |
Short term gains to attract a 20% rate, long term gains on all assets to attract a 12.5% rate, and increase in exemption limit to Rs 1.25 lakh per year. |
|
GST |
Continued simplification and rationalization of GST structure, further digitalization and paperless processes in Customs and Income Tax. |
|
Custom Duties |
Reduction in duties on cancer treatment medicines, mobile phones, PCBA, and mobile chargers. Exemptions for critical minerals, seafood exports, and solar panel manufacturing. Increase in duties on ammonium nitrate and PVC flex banners. |
|
Dispute Resolution |
Introduction of Vivad se Vishwas Scheme, 2024, increase in monetary limits for filing appeals, and expansion of safe harbour rules. |
This structured overview captures the comprehensive and multifaceted approach of the Union Budget 2024-25, focusing on economic growth, tax reforms, and relief measures to support various sectors and communities across India.
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Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including Newspapers, Journals, Bare Acts, Case Materials , Charted Secretary, Research Papers etc.