Summary
Finance Minister Nirmala Sitharaman presented the first Union Budget of the Modi 3.0 government and her seventh consecutive budget during the Monsoon Session of Parliament. The budget focuses on employment, skilling, MSME, and the middle class. Key allocations include Rs 1.52 lakh crore for the agriculture sector and Rs 1.48 lakh crore for education, employment, and skilling.
👇🏻👇🏻Click Below👇🏻👇🏻
Budget 2024: The government has reduced customs duty on precious metals such as gold, silver, and platinum, as well as on fish, fish products, and mobile accessories.
Table of Contents
Budget 2024 Live Updates
10:00 AM: Presentation Begins
Finance Minister Nirmala Sitharaman has begun presenting the Union Budget 2024, marking the first budget of the Modi 3.0 government and her seventh consecutive budget. She started her speech by highlighting the government’s commitment to economic growth, employment, and skilling initiatives.
10:15 AM: Focus on Employment and Skilling
Sitharaman emphasized the budget’s focus on employment and skilling, announcing a new centrally-sponsored scheme to skill 20 lakh youth over the next five years in collaboration with states and industry. Additionally, she announced internship opportunities for 1 crore youth with a Rs 5,000 monthly allowance in 500 top companies.
10:30 AM: Boost to Agriculture Sector
A major boost to the agriculture sector was announced with an allocation of Rs 1.52 lakh crore. This funding aims to support farmers and enhance agricultural productivity, ensuring food security and economic stability for rural India.
10:45 AM: Nuclear Technology Development
In a significant move, the Finance Minister announced a major push for the research and development of new technologies for nuclear energy. The government will partner with the private sector to:
- Set up Bharat Small Reactors.
- Research and develop Bharat Small Modular Reactors.
- Develop newer technologies for nuclear energy.
11:00 AM: Personal Income Tax Reforms
Sitharaman introduced reforms in the personal income tax regime, aiming to provide relief to the middle class. The new tax regime includes increased standard deductions for salaried employees and enhanced family pension deductions. The revised tax rates are as follows:
| Income Range (in Rs) | Tax Rate |
|---|---|
| 0 – 3 lakh | Nil |
| 3 – 7 lakh | 5% |
| 7 – 10 lakh | 10% |
| 10 – 12 lakh | 15% |
| 12 – 15 lakh | 20% |
| Above 15 lakh | 30% |
11:15 AM: Direct Taxes Simplification
The Finance Minister announced ongoing efforts to simplify taxes, improve services, reduce litigation, and enhance revenue. Significant adoption of simplified tax regimes has been noted in both corporate and personal tax sectors. A comprehensive review of the Income-Tax Act has been announced, aiming to reduce disputes and litigation, to be completed in six months.
11:30 AM: Support for Charities and Digitalization
Sitharaman announced the merging of tax exemption regimes for charities and reduced TDS rates. The government also plans to fully digitalized remaining Customs and Income Tax services, enhancing efficiency and transparency.
11:45 AM: Introduction of Vivad Se Vishwas Scheme 2024
A new scheme, Vivad Se Vishwas 2024, was announced to resolve certain income tax disputes. The government has also increased monetary limits for filing appeals related to direct taxes and expanded the scope of safe harbour rules for international taxation.
12:00 PM: Angel Tax Abolition and NPS Deduction Increase
In a move to boost startups, the Finance Minister announced the abolition of angel tax for all classes of investors. Additionally, the deduction for employer contributions to the National Pension Scheme (NPS) has been increased from 10% to 14% of salary.
12:15 PM: Support for Poor and Middle Class
Sitharaman reaffirmed the government’s commitment to supporting the poor, middle class, and MSMEs. The PM Garib Kalyan Anna Yojana has been extended for five years, benefiting 80 crore people. The budget also provides Rs 1.48 lakh crore for education, employment, and skilling.
12:30 PM: Government’s Commitment to All States
Addressing the criticism from the opposition, Sitharaman stated that the Modi government provides funds to all states without discrimination. She emphasized that ₹1.5 lakh crore assistance has been promised for all states, ensuring balanced regional development.
12:45 PM: Economic Growth Projections
The economy is projected to grow by 6.5-7% in the current fiscal year, according to the Economic Survey tabled in Parliament on Monday. This positive outlook reflects the government’s efforts to stimulate growth and ensure economic stability.
1:00 PM: Budget Presentation Concludes
Nirmala Sitharaman concluded her budget presentation after delivering a comprehensive financial address that lasted for 1 hour and 25 minutes. This marks her seventh consecutive Union Budget, placing her in the esteemed company of C. D. Deshmukh and Morarji Desai.
Detailed Analysis of Key Announcements
Employment and Skilling Initiatives
The government’s focus on employment and skilling is evident through the new schemes announced. The centrally-sponsored skilling scheme aims to provide training to 20 lakh youth over the next five years, ensuring that the workforce is equipped with the necessary skills for future job markets. The internship program, which offers Rs 5,000 monthly allowance to 1 crore youth, is designed to provide practical experience and improve employability.
Agricultural Boost
The allocation of Rs 1.52 lakh crore to the agriculture sector underscores the government’s commitment to supporting farmers and enhancing agricultural productivity. This funding will be used to implement various schemes and initiatives aimed at improving crop yields, ensuring food security, and increasing farmers’ income.
Nuclear Technology Development
The push for research and development in nuclear technology is a significant step towards achieving energy security and reducing dependence on fossil fuels. By partnering with the private sector, the government aims to accelerate the development of Bharat Small Reactors and Bharat Small Modular Reactors, which are expected to be more efficient and safer than traditional nuclear reactors.
Personal Income Tax Reforms
The reforms in personal income tax are aimed at providing relief to the middle class and encouraging savings and investment. The increased standard deduction and enhanced family pension deduction will reduce the tax burden on salaried employees, while the revised tax rates provide a more progressive tax structure.
Simplification of Direct Taxes
The government’s efforts to simplify direct taxes and improve tax administration are expected to reduce compliance costs and enhance taxpayer experience. The comprehensive review of the Income-Tax Act and the introduction of the Vivad Se Vishwas Scheme 2024 are significant steps towards reducing litigation and resolving tax disputes.
Support for Charities and Digitalization
The merging of tax exemption regimes for charities and the reduction of TDS rates will provide a more streamlined and efficient tax system for charitable organizations. The full digitalization of Customs and Income Tax services is expected to enhance transparency, reduce corruption, and improve efficiency in tax administration.
Angel Tax Abolition and NPS Deduction Increase
The abolition of angel tax for all classes of investors is a welcome move for startups, as it will reduce the tax burden and encourage investment in innovative ventures. The increased NPS deduction for employer contributions will provide greater retirement benefits to employees and encourage long-term savings.
Support for Poor and Middle Class
The extension of the PM Garib Kalyan Anna Yojana for five years will continue to provide food security to 80 crore people, ensuring that the most vulnerable sections of society are supported. The allocation of Rs 1.48 lakh crore for education, employment, and skilling reflects the government’s commitment to improving the quality of education and creating more job opportunities.
Economic Growth Projections
The positive growth projections for the current fiscal year indicate that the government’s policies and initiatives are having a positive impact on the economy. The focus on employment, skilling, and sectoral boosts is expected to drive economic growth and ensure long-term stability.
Conclusion
The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman is a comprehensive and forward-looking budget that aims to address the needs of various sectors and ensure balanced regional development. The focus on employment, skilling, and economic growth reflects the government’s commitment to creating a prosperous and inclusive economy.
For continuous updates on Budget 2024, keep following live updates. #thefirstnewz
Budget 2024: Capital Pains and Other Long-Term Letdowns
Dear fellow capital-gains-tax sufferers,
Right now, my reaction to the Union Budget is a big, fat “hmmmmm…” As I write this, I hope my thoughts will clear up and a theme will emerge.
I listened to the finance minister’s speech with limited focus, anticipating the end. Then, I mentally readjusted, hoping to avoid any tax surprises from the FM.
Unfortunately, she had a plan this year, one that felt like a thousand tiny cuts for us investors. It triggered a bunch of thoughts, the first of which was: WHY?
Leaving the finer details to tax experts, I still wonder why the finance minister increased the tax on long-term capital gains. Doesn’t India need long-term capital anymore?
7 thoughts on “Budget 2024 Live Updates: Angel Tax Eliminated, National Health Mission Funding Boosted, and More Positive Changes…”