Budget 2024 Key Highlights
Budget Theme:
> Productivity and resilience in Agriculture
Natural Farming
Shrimp Production & Export
Digital Public Infrastructure (DPI)
> Employment and Skilling
> MSME and Manufacturing Support
> Financial Initiatives
> Infrastructure and Regional Development
> Economic Outlook
> Social Welfare
> Budget Estimates 2024-25
> Tax rate structure revised in new regime
Tax rate structure in the new income Tax regime has been revised -
> Capital Gains Tax
Finance Secretary T. V. Somanathan said that the expenditure towards railways is the highest ever at ₹2.56 lakh crore. On the fiscal deficit, he said it is highly likely the fiscal deficit will not exceed 4.5% in FY26. He added that there is a commitment to endeavor to reduce the debt-to-GDP ratio every year.
Finance Minister Nirmala Sitharaman in a press briefing after the announcement of Union Budget 2024 said that the average taxation has come down for asset classes which encourages investment in the market. She said that an attempt has been made to widen the tax net and it has to be widened for both direct and indirect taxes.
It was also clarified that the increased Securities Transaction Tax (STT) on F&O will be effective from October 1, 2024.
Check the key announcements for Tourism sector:
The government spends 21% of every rupee earned into states’ share of taxes and duties and 19% towards interest payments.
Around 27% of every rupee earned by the government comes from borrowing and other liabilities, while 19% comes from Income tax.
FM Sitharaman also announced hikes in custom duties for certain products. These things are likely to get costlier after Budget 2024:
FM Sitharaman announced cuts in custom duties for a slew of products. These are the things that are likely to get cheaper after Budget 2024:
Budget 2024 announced removal of indexation benefit on sale of property along with lowering on of long term capital gains tax to 12.5%.
LTCG arising from sale of property was earlier taxed at 20% with indexation benefit. Now, sale of property will attract a new LTCG tax rate of 12.5% without indexation benefit.
Here’s a look at the comparison between the tax slabs in the old and new Income Tax regime.
Here are budget expenditure on major sectors:
Other key proposals on taxes
Here are the Budget Estimates 2024-25:
The fiscal consolidation path announced by me in 2021 has served our economy very well, and we aim to reach a deficit below 4.5% next year. The Government is committed to staying the course. From 2026-27 onwards, our endeavour will be to keep the fiscal deficit each year such that the Central Government debt will be on a declining path as percentage of GDP, Finance Minister Nirmala Sitharaman said.
Here are the changes in sector specific customs duty announced in the Budget 2024:
FM Sitharaman announced reduction of tax rate on foreign companies. The Budget 2024 proposed to reduce the rate of income-tax chargeable on income of foreign company (other than that chargeable at special rates) from 40% to 35%.
Taxes announced on Buy-back of shares and Securities transaction tax (STT) rates on F&O transactions
Budget 2024 proposed that the income from buy-back of shares by companies be chargeable in the hands of the recipient investor as dividend, instead of the current regime of additional income-tax in the hands of the company. Further, the cost of such shares shall be treated as a capital loss to the investor.
It is proposed to increase the rates of STT on sale of an option in securities from 0.0625% to 0.1% of the option premium, and on sale of a futures in securities from 0.0125% to 0.02% of the price at which such futures are traded.
FM Sitharaman announced certain incentives to IFSC. Here are those:
The taxation of capital gains is proposed to be rationalised and simplified, FM Sitharaman said.
Here are some of the announcements on TDS and TCS:
TDS on payment to a partner
TCS on notified luxury goods
TDS on Floating Rate Savings (Taxable) Bonds (FRSB) 2020
FM Sitharaman revises tax rate structure in the new income Tax regime. The revised tax slabs will result in ₹17,500 saving in income tax, Sitharaman said. Here’s the revised tax structure:
Here are the announcements on Capital gain taxes
FM Sitharaman announces cut in Custom Duties:
FM Sitharaman projects FY25 fiscal deficit at 4.9% of GDP as against 5.1% in Interim Budget. She says government is committed to reduce deficit below 4.5%.
FM announced that industrial parks will be developed in or near 100 cities. Here are the proposals:
FM Sitharaman announced a package in a boost to skilling. Here are the highlights
Skilling Programme and Upgradation of Industrial Training Institutes
Internship in Top Companies
Budget 2024 Key Highlights Live: Finance Minister Nirmala Sitharaman keeps capex for FY25 at ₹11.11 lakh crore or 3.4% of GDP, same as announced in Interim Budget
Here are the announcements for MSMEs:
FM Sitharaman proposes revision of Model Skill Loan Scheme to help 25,000 students every year. Here are the announcements:
FM Sitharaman announces three schemes for employment-linked incentives. These schemes will be based on enrolment in the EPFO and focus on recognizing first-time employees.
Scheme A: First timers
First-timers to receive one month's wage upon entering the workforce in all formal sectors. A direct benefit transfer (DBT) of one month's salary, up to ₹15,000, to be provided in three instalments.
Scheme B: Job creation in manufacturing
Job creation in manufacturing sector to be incentivized through a scheme linked to the employment of first-time employees. Incentives to be provided to both employees and employers as per their EPFO contributions for the first 4 years of employment.
Scheme C: Support to employers
Reimbursement to employers up to ₹3,000 per month for 2 years towards their EPFO contribution for each additional employee. The eligibility limit for this will be a salary of ₹1 lakh per month, and it is expected to benefit 2.1 lakh youths
Here are the announcements made so far for the agriculture and allied sectors:
FM Nirmala Sitharaman announces Budgetary priorities. These are -
FM Sitharaman announces ₹2 lakh crore for 5 new schemes. The focus will be on jobs and skilling of 4.1 crore youth.
FM Sitharaman begins her Budget speech. She says -
The Union Cabinet has approved the Union Budget for the financial year 2024-2025. This is the first full budget of the Modi 3.0 government. Finance Minister Nirmala Sitharaman will present the budget 2024 at 11 am in Lok Sabha. This will be her seventh straight Budget speech.
The Economic Survey 2024 tabled in the parliament on Monday raised concerns over the significant increase in the participation of retail investors in the Indian stock market, calling for careful consideration.
“This is crucial because the possibility of overconfidence leading to speculation and the expectation of even greater returns, which might not align with the real market conditions, is a serious concern," the Economic Survey said.
Rahul Ghose, CEO of Hedged.in advises a low risk strategy in the Bank Nifty index that can be employed to play the budget day. Speaking on the Budget trading strategy for Bank Nifty options, Ghose recommends Cross Calendar Spread.
Here’s the budget trading strategy for Bank Nifty by Rahul Ghose:
Trade name:
Bank Nifty Cross Calendar spread
Trade Structure:
Trade rules:
The capital required in the trade is approximately ₹20,000. According to Ghose, this trade can be entered if Bank Nifty is between 52,500 and 51,500 on or before the budget day.
The maximum loss in the trade is ₹3,000 and the target in the trade should be 4-5% on the capital depending upon the time and individual risk appetite, he said.
Trade Modifications:
The trade is protected with a limited risk, but one can further bring down the risk by constantly selling weekly expiry puts of subsequent weeks.
For example: At the end of July, one can buy back the 31st July PE and sell the 7th August or week after that PE. Just make sure that you get at least ₹80 when you are selling the Puts, Ghose added.
Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 on July 22. Here are the key highlights from the Survey:
Finance Minister announced an Interim Budget on February 1 ahead of the Lok Sabha elections 2024. Here are the key highlights from the Interim Budget:
Indian stock market benchmark indices, Sensex and Nifty 50, opened higher on Tuesday ahead of the announcement of Union Budget 2024.
The Budget 2024 is expected to provide focus on the government’s roadmap for ‘Viksit Bharat’ by 2047. While maintaining the path of fiscal prudence, the government is likely to focus on capex spending to help create jobs and targeted social sector spending. Budget is also expected to be themed on improving access to physical, social and digital infrastructure.
Budget 2024 Key Updates Live: Union Finance Minister Nirmala Sitharaman will present her seventh consecutive Union Budget today in the Lok Sabha, the lower house of the Parliament, surpassing former FM Morarji Desai’s record. The Budget 2024 will be the first full budget of the National Democratic Alliance (NDA) government in its third term led by Prime Minister Narendra Modi. However, it will be Modi government’s 13th Budget since taking charge in 2024.
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