Highlights of the Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman in Lok Sabha on Tuesday.
Illustration: Dominic Xavier/Rediff.com
- Standard deduction in new tax regime hiked to Rs 75,000 from Rs 50,000
- Deduction on family pension for pensioners raised from Rs 15,000 to Rs 25,000
- Tax slabs under new tax regime tweaked: 5% for income between Rs 3-7 lakh, 10% (for Rs 7-10 lakh), 15% for Rs 10-12 lakh
- Salaried employee in the new tax regime stands to save up to Rs 17,500 in income tax
- Three cancer drugs -- TrastuzumabDeruxtecan, Osimertinib and Durvalumab -- fully exempted from custom duty
- Customs duty on mobile phone, mobile Printed Circuit Board Assembly (PCBA) and mobile charger reduced to 15%
- Customs duties on gold and silver reduced to 6% and that on platinum to 6.4%.
- Security Transactions Tax on futures and options of securities increased to 0.02% and 0.1%, respectively.
- Income received on buy back of shares to be taxed in the hands of recipient
- Angel tax for all classes of investors abolished to boost startups
- Corporate tax rate on foreign companies reduced from 40 to 35%.
- 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 Rs 60 lakh, Rs 2 crore and Rs 5 crore respectively
- 20% tax on short-term gains on certain financial assets
- 12.5% tax on long term gains on all financial and non-financial assets
- Long-term capital gains up to Rs 1.25 lakh from listed equities exempted
- TDS rate on e-commerce operators reduced from one to 0.1%
- Delay for payment of TDS up to due date of filing statement decriminalized.
- I-T assessment can be reopened beyond 3 years up to five years only if the escaped income is Rs 50 lakh or more.
- In search cases, time limit reduced from 10 to 6 years before the year of search
- Govt to complete comprehensive review of the Income-tax Act, 1961 in six months
- GST to be simplified and rationalised to expand to remaining sectors
- Fiscal deficit pegged at 4.9% of GDP in FY25, to be cut further below 4.5% next year
- Budget outlines 9 priority areas, including manufacturing and services, and next generation reforms, in pursuit of Viksit Bharat
- Budget focusses on employment, skilling, MSME, middle class
- Allocates Rs 1.52 lakh crore for agriculture and allied sectors
- FY25 capex pegged at Rs 11.11 lakh crore
- Rs 11,500 crore financial support to certain irrigation and flood mitigation projects in Bihar
- Rs 15,000 crore special financial support to Andhra Pradesh through multilateral development agencies.
