Budget 2024 announced on 1st February 2024 by FM of Bharat on the theme “Viksit Bharat Budget 2024”. She reiterated that the country continues to strive towards Atmanirbhar Bharat. At the same time, the welfare and aspirations of the Gareeb (poor), Mahila (women), Yuva (youth), and Annadata (farmers) would be the most important focus areas in the Interim Budget 2024.
Direct Tax Proposals
- The FM announced that same tax rates will be retained in FY 2024-25 for direct taxes. There will be no tax liability for taxpayers with an income of up to Rs.7 lakh, under the new tax regime.
- The 22% tax rate for corporate taxes will apply for existing domestic companies and 15% for certain new manufacturing companies.
- The average processing time of tax returns has reduced from 93 days in 2013-14 to 10 days in 2023-24.
- An extension in the time limit for certain tax benefits for start-ups and investments made by sovereign wealth funds/pension funds, and a tax exemption for specific IFSC units that expires on 31st March 2024. The same has been extended up to 31st March 2025.
Goods and Services Tax
- The FM announced that the average monthly gross GST collection has doubled to Rs.1.66 lakh crore in FY24.
- There has been an increase in the tax buoyancy of state revenue from 0.72 in 2012-16 to 1.22 in the post-GST period of 2017-23.
- The same customs rates, including import duties, will be retained in FY 2024-25.
Garib Kalyan, Desh ka Kalyan
- Direct Benefit Transfer (DBT) has led to savings of Rs. 2.7 lakh crore.
- 25 crore people have moved out of multidimensional poverty.
- Credit assistance has been given to 78 lakh street vendors under PM-SVANidhi.
Nari Shakti
- 30 crore Mudra Yojana loans have been disbursed to women entrepreneurs.
- There has been an increase in female enrollment in higher education by 28 per cent in the past 10 years.
- There is 43% of female enrolment in STEM courses
- One crore women are assisted by 83 lakh SHGs to become Lakhpati Didis.
Tourism
- States will be encouraged to undertake the development of iconic tourist centres to attract business and promote opportunities for local entrepreneurship.
- Long-term interest-free loans are to be provided to states to encourage development.
- Projects for port connectivity, tourism infrastructure, and amenities will be taken up in islands, including Lakshadweep.
Other Key Points:
- 75 Vande Bharat trains to be rolled out by August 2023.
- Fiscal deficit target: below 4.5% by 2025-26.
- Increased allocation for MSMEs, agriculture, education, healthcare, housing, and urban development.
- Measures to promote ease of doing business and digital services.
- Free food grain scheme extended till 2024.
Please take note that the information in this blog has been sourced from the Finance Minister’s speech in the Indian government’s interim budget announcement. Here are the Interim Union Budget Highlights 2024. download official Budget highlights