TaxTMI 
TaxTMI 
HIGHLIGHTS OF THE UNION BUDGET 2024-25
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....IGHLIGHTS OF THE UNION BUDGET 2024-25 <br>Budget<br>Dated:- 23-7-2024<br><BR>The Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament today. The highlights of the budget are as follows: Part-A Budget Estimates 2024-25: * Total receipts other than borrowings: `32.07 lakh crore. * Total expenditure: `48.21 lakh crore. * Net tax receipt: `25.83 lakh crore. * Fiscal deficit: 4.9 per cent of GDP. * Government aims to reach a deficit below 4.5 per cent next year. * Inflation continues to be low, stable and moving towards the 4% target; Core inflation (non-food, non-fuel) at 3.1%. * The focus of budget is on EMPLOYMENT, SKILLING, MSMEs, and the MIDDLE CLASS. Package of PM's five schemes for Employment and Skilling * Prime Minister's Package of 5 Schemes and Initiatives for employment, skilling and other opportunities for 4.1 crore youth over a 5-year period. * 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, ....
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....both employee and employer, with respect 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. * New centrally sponsored scheme for Skilling * 20 lakh youth to be skilled over a 5-year period. * 1,000 Industrial Training Institutes to be upgraded in hub and spoke arrangements. * New Scheme for Internship in 500 Top Companies to 1 crore youth in 5 years Nine Budget Priorities in pursuit of 'Viksit Bharat': * Productivity and resilience in Agriculture * Employment & Skilling * Inclusive Human Resource Development and Social Justice * Manufacturing & Services * Urban Development * Energy Security * Infrastructure * Innovation, Research & Development and * Next Generation Reforms Priority 1: Productivity and resilience in Agriculture * Allocation of `1.52 lakh crore for agriculture and allied sectors. * New 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops to be released for cultivation by farmers. * 1 crore farmers across the country to be in....
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....itiated into natural farming, with certification and branding in next 2 years. * 10,000 need-based bio-input resource centres to be established for natural farming. * Digital Public Infrastructure (DPI) for Agriculture to be implemented for coverage of farmers and their lands in 3 years. Priority 2: Employment & Skilling * As part of the Prime Minister's package, 3 schemes for 'Employment Linked Incentive' to be implemented - Scheme A - First Timers; Scheme B - Job Creation in manufacturing; Scheme C - Support to employers. * To facilitate higher participation of women in the workforce, * working women hostels and crèches to be established with industrial collaboration * women-specific skilling programmes to be organized * market access for women SHG enterprises to be promoted Skill Development * New centrally sponsored scheme for Skilling under Prime Minister's Package for 20 lakh youth over a 5-year period. * Model Skill Loan Scheme to be revised to facilitate loans up to `7.5 lakh. * Financial support for loans upto `10 lakh for higher education in domestic institutions to be provided to youth who have not been eligible for any benefit under govern....
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....ment schemes and policies. Priority 3: Inclusive Human Resource Development and Social Justice Purvodaya * Industrial node at Gaya to be developed along the Amritsar-Kolkata Industrial Corridor. * Power projects, including new 2400 MW power plant at Pirpainti, to be taken up at a cost of `21,400 crore. Andhra Pradesh Reorganization Act * * Special financial support through multilateral development agencies of `15,000 crore in the current financial year. * Industrial node at Kopparthy along Vishakhapatnam-Chennai Industrial Corridor and at Orvakal along Hyderabad-Bengaluru Industrial Corridor. Women-led development * Total allocation of more than `3 lakh crore for schemes benefitting women and girls. Pradhan Mantri Janjatiya Unnat Gram Abhiyan * Socio-economic development of tribal families in tribal-majority villages and aspirational districts, covering 63,000 villages benefitting 5 crore tribal people. Bank branches in North-Eastern Region * 100 branches of India Post Payment Bank to be set up in the North East region. Priority 4: Manufacturing & Services Credit Guarantee Scheme for MSMEs in the Manufacturing Sector * A credit guarantee scheme without co....
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....llateral or third-party guarantee in term loans to MSMEs for purchase of machinery and equipment. Credit Support to MSMEs during Stress Period * New mechanism to facilitate continuation of bank credit to MSMEs during their stress period. Mudra Loans * The limit of Mudra loans under 'Tarun' category to be enhanced to `20 lakh from `10 lakh for those who have successfully repaid previous loans. Enhanced scope for mandatory onboarding in TReDS * Turnover threshold of buyers for mandatory onboarding on the TReDS platform to be reduced from `500 crore to `250 crore.. MSME Units for Food Irradiation, Quality & Safety Testing * Financial support to set up 50 multi-product food irradiation units in the MSME sector . E-Commerce Export Hubs * E-Commerce Export Hubs to be set up under public-private-partnership (PPP) mode for MSMEs and traditional artisans to sell their products in international markets. Critical Mineral Mission * Critical Mineral Mission to be set up for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. Offshore mining of minerals * Auction of the first tranche of offshore blocks for mining, buildi....
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....ng on the exploration already carried out. Digital Public Infrastructure (DPI) Applications * Development of DPI applications in the areas of credit, e-commerce, education, health, law and justice, logistics, MSME, services delivery, and urban governance. Priority 5: Urban Development Transit Oriented Development * Formulation of Transit Oriented Development plans and strategies to implement and finance 14 large cities above 30 lakh population. Urban Housing * Investment of `10 lakh crore, including the central assistance of `2.2 lakh crore in next 5 years, under PM Awas Yojana Urban 2.0 proposed to address the , housing needs of 1 crore urban poor and middle-class families. Street Markets * New scheme to support the development of 100 weekly 'haats' or street food hubs every year for the next 5 years in select cities. Priority 6: Energy Security Energy Transition * Policy document on 'Energy Transition Pathways' to balance the imperatives of employment, growth and environmental sustainability to be brought out. Pumped Storage Policy * Policy for promoting pumped storage projects for electricity storage to be brought out. Research and development of small an....
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....d modular nuclear reactors * Government to partner with private sector for R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy, and to set up Bharat Small Reactors. Advanced Ultra Super Critical Thermal Power Plants * Joint venture proposed between NTPC and BHEL to set up a full scale 800 MW commercial plant using Advanced Ultra Super Critical (AUSC) technology. Roadmap for 'hard to abate' industries * Appropriate regulations for transition of 'hard to abate' industries from the current 'Perform, Achieve and Trade' mode to 'Indian Carbon Market' mode to be put in place. Priority 7: Infrastructure Infrastructure investment by Central Government * `11,11,111 crore (3.4 % of GDP) to be provided for capital expenditure. Infrastructure investment by state governments * Provision of `1.5 lakh crore for long-term interest free loans to support states in infrastructure investment. Pradhan Mantri Gram SadakYojana (PMGSY) * Launch of phase IV of PMGSY to provide all-weather connectivity to 25,000 rural habitations. Irrigation and Flood Mitigation * Financial support of `11,500 crore to projects such as the Kosi-Mechi intra-state link and othe....
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....r schemes in Bihar. * Government to provide assistance to Assam, Himachal Pradesh, Uttarakhand and Sikkim for floods, landslides and other related projects. Tourism * Comprehensive development of Vishnupad Temple Corridor, Mahabodhi Temple Corridor and Rajgir. * Assistance for development of temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches of Odisha. Priority 8: Innovation, Research & Development * Anusandhan National Research Fund for basic research and prototype development to be operationalised. * Financing pool of `1 lakh crore for spurring private sector-driven research and innovation at commercial scale. Space Economy * Venture capital fund of `1,000 crore to be set up for expanding the space economy by 5 times in the next 10 years. Priority 9: Next Generation Reforms Rural Land Related Actions * Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands * Digitization of cadastral maps * Survey of map sub-divisions as per current ownership * Establishment of land registry * Linking to the farmers registry Urban Land Related Actions * Land records in urban areas to be digitized w....
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....ith GIS mapping. Services to Labour * Integration of e-shram portal with other portals to facilitate such one-stop solution. * Open architecture databases for the rapidly changing labour market, skill requirements and available job roles. * Mechanism to connect job-aspirants with potential employers and skill providers. NPS Vatsalya * NPS-Vatsalya as a plan for contribution by parents and guardians for minors. PART B Indirect Taxes GST * Buoyed by GST's success, tax structure to be simplified and rationalised to expand GST to remaining sectors. Sector specific customs duty proposals Medicines and Medical Equipment * Three cancer drugs namely TrastuzumabDeruxtecan, Osimertinib and Durvalumab fully exempted from custom duty. * Changes in Basic Customs Duty (BCD) on x-ray tubes & flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme. Mobile Phone and Related Parts * BCD on mobile phone, mobile Printed Circuit Board Assembly (PCBA) and mobile charger reduced to 15 per cent. Precious Metals * Customs duties on gold and silver reduced to 6 per cent and that on platinum to 6.4 per cent. Other Metals * BCD removed on f....
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....erro nickel and blister copper. * BCD removed on ferrous scrap and nickel cathode. * Concessional BCD of 2.5 per cent on copper scrap. Electronics * BCD removed, subject to conditions, on oxygen free copper for manufacture of resistors. Chemicals and Petrochemicals * BCD on ammonium nitrate increased from 7.5 to 10 per cent. Plastics * BCD on PVC flex banners increased from 10 to 25 per cent. Telecommunication Equipment * BCD increased from 10 to 15 per cent on PCBA of specified telecom equipment. Trade facilitation * For promotion of domestic aviation and boat & ship MRO, time period for export of goods imported for repairs extended from six months to one year. * Time-limit for re-import of goods for repairs under warranty extended from three to five years. Critical Minerals * 25 critical minerals fully exempted from customs duties. * BCD on two critical minerals reduced. Solar Energy * Capital goods for use in manufacture of solar cells and panels exempted from customs duty. Marine products * BCD on certain broodstock, polychaete worms, shrimp and fish feed reduced to 5 per cent. * Various inputs for manufacture of shrimp and fish feed exempted ....
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....from customs duty. Leather and Textile * BCD reduced on real down filling material from duck or goose. * BCD reduced, subject to conditions, on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn from 7.5 to 5 per cent. Direct Taxes * Efforts to simplify taxes, improve tax payer services, provide tax certainty and reduce litigation to be continued. * Enhance revenues for funding development and welfare schemes of government. * 58 per cent of corporate tax from simplified tax regime in FY23, more than two-thirds taxpayers availed simplified tax regime for personal income tax in FY 24. Simplification for Charities and of TDS * Two tax exemption regimes for charities to be merged into one. * 5 per cent TDS rate on many payments merged into 2 per cent TDS rate. * 20 per cent TDS rate on repurchase of units by mutual funds or UTI withdrawn. * TDS rate on e-commerce operators reduced from one to 0.1 per cent. * Delay for payment of TDS up to due date of filing statement decriminalized. Simplification of Reassessment * Assessment can be reopened beyond three years upto five years from the end of Assessment Year only if the escaped income is ....
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....377; 50 lakh or more. * In search cases, time limit reduced from ten to six years before the year of search. Simplification and Rationalisation of Capital Gains * Short term gains on certain financial assets to attract a tax rate of 20 per cent. * Long term gains on all financial and non-financial assets to attract a tax rate of 12.5 per cent. * Exemption limit of capital gains on certain financial assets increased to ₹ 1.25 lakh per year. Tax Payer Services * All remaining services of Customs and Income Tax including rectification and order giving effect to appellate orders to be digitalized over the next two years. Litigation and Appeals * 'Vivad Se Vishwas Scheme, 2024' for resolution of income tax disputes pending in appeal. * Monetary limits for filing direct taxes, excise and service tax related appeals in Tax Tribunals, High Courts and Supreme Court increased to ₹60 lakh, ₹2 crore and ₹5 crore respectively. * Safe harbour rules expanded to reduce litigation and provide certainty in international taxation. Employment and Investment * Angel tax for all classes of investors abolished to bolster start-up eco-system,. * Simpler tax....
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.... regime for foreign shipping companies operating domestic cruises to promote cruise tourism in India. * Safe harbour rates for foreign mining companies selling raw diamonds in the country. * Corporate tax rate on foreign companies reduced from 40 to 35 per cent. Deepening tax base * Security Transactions Tax on futures and options of securities increased to 0.02 per cent and 0.1 per cent respectively. * Income received on buy back of shares in the hands of recipient to be taxed. Social Security Benefits. * Deduction of expenditure by employers towards NPS to be increased from 10 to 14 per cent of the employee's salary. * Non-reporting of small movable foreign assets up to ₹20 lakh de-penalised. Other major proposal in Finance Bill * Equalization levy of 2 per cent withdrawn. Changes in Personal Income Tax under new tax regime * Standard deduction for salaried employees increased from ₹50,000 to ₹75,000. * Deduction on family pension for pensioners enhanced from ₹15,000/- to ₹25,000/- * Revised tax rate structure: 0-3 lakh rupees Nil 3-7 lakh rupees 5 per cent 7-10 lakh rupees 10 per cent 10-12 lakh rupees 15 per cent 12....
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....-15 lakh rupees 20 per cent Above 15 lakh rupees 30 per cent * Salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax.<BR> News - Press release - PIB....