Union Budget 2024

After presenting a record seventh consecutive budget, Sitharam introduced the Finance Bill in the Lok Sabha before concluding her speech. Following that, the Budget Session has been adjourned till 11:00am on Wednesday.

With the revised tax rate structure in the new tax regime, Sitharaman said, a salaried individual would be able to save up to Rs. 17,500 more in income tax.

On Tuesday, Sitharaman also announced a revision of tax rates under the new income tax regime. Take a look:

Up to Rs. 3,00,000: Nil
From Rs. 3,00,001 to Rs. 7,00,000: 5%
From Rs. 7,00,001 to Rs. 10,00,000: 10%
From Rs. 10,00,001 to Rs. 12,00,000: 15%
From Rs. 12,00,001 to Rs. 15,00,000: 20%
Above Rs. 15,00,000: 30%

In a relief for individual taxpayers, Finance Minister Sitharaman has also proposed to increase the standard deduction on the taxable income of salaried employees to Rs. 75,000 from Rs. 50,000. On the other hand, the deduction for family pension will be increased from Rs. 15,000 to Rs. 25,000.

In a significant development for the start-up space, Sitharaman has also announced that the government will abolish the angel tax for all investors in India. "Angel tax is an income tax levied on funding raised by startups if their valuation exceeds the fair market value," per Economic Times.

Announcing a review of the Income Tax Act, Sitharaman said, "I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in six months." She also announced that the limit on long-term capital gains (LTCG) tax on all financial and non-financial will be 12.5%. The exemption limit is Rs. 1.25 lakh per year.

The finance minister on Tuesday also proposed several schemes aimed at enhancing spiritual tourism in the country. The development of corridors at Vishnupath Temple at Gaya and Mahabodhi Temple in Bodhgaya and the enhancement of tourism in Rajgir and Nalanda, all in Bihar, are on the list. Sitharaman added, "We will support tourism in Odisha that has scenic beauty, temples, craftsmanship, natural landscapes, wildlife sanctuaries and pristine beaches."

Sitharaman further announced that MUDRA loans, the credit support provided for MSMEs, will be increased from Rs. 10 lakh to Rs. 20 lakh. This will apply to those entities that have previously availed and successfully repaid loads under the TARUN category. "The scheme will operate on the cooling of credit risks of such MSMEs," she added.

In a significant move to boost youth development and employment, Sitharaman also announced internship opportunities for one crore youth in top companies over the next five years. Apart from offering work experience and skill development, a monthly stipend of Rs. 5,000 will be provided to the interns.

Sitharaman announced new medical colleges, airports, road projects, and sports infrastructure for Bihar, adding it will also receive support from multilateral development agencies. Furthermore, she said the Modi government is committed to fulfilling the Andhra Pradesh Reorganisation Act, recognizing its need for a state capital. Promising special financial support, the minister said the Centre will also finance Andhra's Pollavaram irrigation project. Notably, Bihar and Andhra are ruled by key NDA allies, Janata Dal (United) and Telugu Desam Party (TDP), respectively.

Sitharaman announced a key policy to support higher education, making it more affordable and accessible for students across India, addressing their financial constraints. She said, "Education loans up to Rs. 10 lakh will be available for students pursuing higher education in domestic institutions."