Union Budget 2024 Highlights: A 20-Point Cheat-Sheet

The Finance Minister Nirmala Sitharaman on Tuesday, 23 July, 2024, revised the tax structure under the New Tax Regime Slabs that is intended to benefit Rs 17,500 in personal income tax.

1. Budget 2024 for taxpayers: The standard deduction limit has been hiked to Rs 75,000 from Rs 50,000 under the new Income Tax regime, while there is no change in the old tax regime. 

2. Capital Gains Tax: The short-term capital gains (STCG) tax has been increased to 20% from 15%, while the long-term capital gains (LTCG) tax has been raised to 12.5% from 10%. 

3. The LTCG exemption limit has been heightened to Rs 1.25 lakh per year, a move that will benefit middle-class taxpayers and people with low-to-moderate gains in an assessment year. 

4. The indexation benefit for real estate units has been withdrawn from this year onwards. Earlier, a 10% LTCG tax was levied on property sales with indexation benefit but it has now increased to 12.5% without indexation. 

5 .Unlisted bonds & debentures, irrespective of holding period, will continue to attract capital gains tax as per applicable rates. 

6. Government has reduced basic customs duty (BCD) on precious metals including gold, silver to 6% and platinum to 6.4%. 

7. Budget 2024 has de-penalised non-reporting by MNC professionals who get ESOPs & then invest in movable assets abroad of up to Rs 20 lakh. 

8. In order to further enhance the social security benefits, FM Sithraman has increased the NPS deduction to 14% from 10% of employee’s salary. 

9. Government has promised to review the Income Tax Act of 1961, a step that can simplify tax structures, litigations and past tax demands. According to the government, more than 66% of the total taxpayers have opted for the new income tax regime. 

10. The BCD on mobile phones, mobile PCB and chargers has been reduced to 15%, while BCD has been exempted on 3 more cancer medicines. The BCD rate rationalisation has been done under the broader plan to review customs duties over a period of 6 months. 

11. Fiscal consolidation path in 2021 served the economy very well. We aim to reach a target of 4.5% in FY26, says FM Sitharaman. The budgeted estimate of total receipts stands at Rs 32.07 lakh crore and Fiscal deficit at 4.9% of GDP. 

12. In-line with the interim budget, PM Surya Ghar Muft Yojana has been launched for installation of roof-top solar plants. 

13. Government has asked the states to charge a lower stamp duty on property purchases specially for women buyers. 

14. An integrated technology platform will be set up for improving outcomes under Insolvency and Bankruptcy Code (IBC) for transparency and more tribunals will be incorporated to further expedite the recovery.

15. The limit for Mudra loan has been doubled to Rs 20 lakh for borrowers who have paid previous loans. Small Industries Development Bank of India (SIDBI) plans to open more branches to cover MSME clusters with 24 branches set to open in 2024.

16. The government has proposed to set up more than 1,000 branches of India Post Payments Bank in the North East.

17. With an intention to boost the talent pool, the government is set to provide education loans of up to Rs 10 lakh who are not covered under any government schemes for higher education in domestic institutions. 

18. The government will issue e-vouchers to 1 lakh students every year for 3% interest subvention on loans and skilling loans will be provided up to Rs 7.5 lakh. 

19. The Finance Minister has proposed to upgrade nearly 1,000 industrial training institutes and the Model Skilling Loan scheme will be revised which will benefit 25,000 students every year. 

20. Working women hostels will be set up and higher participation of women in the workforce will be promoted through hostels and creches. The government has also proposed to build 3 crore houses in PMAY2, in both rural and urban areas.