2024 Union budget of India
| Annual Financial Statement of the Central Government for the year 2024–25 The Finance Bill, 2024 | |
|---|---|
 | |
| Submitted | 23 July 2024 |
| Submitted by | Nirmala Sitharaman (Minister of Finance) |
| Submitted to | Parliament of India |
| Presented | 23 July 2024 |
| Parliament | 18th (Lok Sabha) |
| Party | Bharatiya Janata Party |
| Finance minister | Nirmala Sitharaman |
| Total revenue | ₹31.29 trillion (US$370 billion) |
| Total expenditures | ₹48.21 trillion (US$580 billion) |
| Tax cuts | Numerous |
| Deficit | 4.9% of GDP(Target) |
| GDP | 3.937 Trillion |
| Website | www |
|
2025› | |
The 2024 Union Budget of India[1] (ISO: 2024 Ke liye Bhārat Kā Saṅghīya Bajaṭ) was presented by Finance Minister, Nirmala Sitharaman on 23 July 2024. This was the first budget of Narendra Modi led NDA government's third term.[2]
History
[edit]The Union Budget is the annual financial report of India; an estimate of income and expenditure of the government on a periodical basis. As per Article 112 of the Indian Constitution, it is a compulsory task of the government.[3] The first budget of India was presented on 18 February 1860 by Scotsman James Wilson.[4] The first Union Budget of Independent India was presented by R. K. Shanmukham Chetty on 26 November 1947.[5]
Tax changes
[edit]Revised income tax slabs
[edit]The income tax (IT) slabs have been revised under the new income tax regime.[6] The updated tax rates are as follows:
| Tax Rate | Slab before budget | Slab after budget |
|---|---|---|
| Nil | Up to Rs 3 lakh | Up to Rs 3 lakh |
| 5% | Rs 3 lakh to Rs 6 lakh | Rs 3 lakh to Rs 7 lakh |
| 10% | Rs 6 lakh to Rs 9 lakh | Rs 7 lakh to Rs 10 lakh |
| 15% | Rs 9 lakh to Rs 12 lakh | Rs 10 lakh to Rs 12 lakh |
| 20% | Rs 12 lakh to Rs 15 lakh | Rs 12 lakh to Rs 15 lakh |
| 30% | Above Rs 15 lakh | Above Rs 15 lakh |
Standard deduction has been increased from 50,000 to 75,000. Ernst & Young estimates that, following standard tax deduction polices, income of upto 7.75 lakh is extempted from income tax after introduction of the increase in standard deduction.[7]
Angel tax
[edit]The government has abolished the "angel tax," a levy that was introduced in the Finance Act of 2012. This tax applied to investments received by unlisted companies that exceeded the fair market value of their shares, often affecting start-ups and early-stage companies.[8]
Capital gains tax
[edit]The capital gains tax structure has also undergone changes:
- Short-Term Capital Gains (STCG): The tax rate on short-term capital gains from shares, mutual funds, and real estate has been increased from 15% to 20%.[9]
- Long-Term Capital Gains (LTCG): The tax rate on long-term capital gains has been set at 12.5%. Additionally, the exemption limit for long-term capital gains has been raised from ₹1 lakh to ₹1.25 lakh.[10]
Tax Deducted at Source
[edit]The government has proposed a reduction in the rate of Tax Deducted at Source (TDS) for various types of payments. Specifically:
- The TDS rate for insurance commission, life insurance policy payments, rent payments, and commission or brokerage payments is proposed to be decreased from 5% to 2%.
- The TDS rate on payments made by e-commerce operators to e-commerce participants for the sale of goods or services is set to be reduced from 1% to 0.1%.
The Secretary of Revenue, Sanjay Malhotra said that the decrease in TDS is aimed at simplifying TDS compliance.[11]
Ministerial allocations of total expenditure
[edit]The total expenditure, encompassing both revenue and capital outlays, was distributed among various ministries. The Finance Ministry received the largest share at 38.5%, while the Defence Ministry held the second position with an allocation of 12.9%.[12]
| Ministry | Total Expenditure ('Crores) | Total Expenditure % |
|---|---|---|
| Ministry of Finance | ₹ 1,858,159 | 38.547% |
| Ministry of Defence | ₹ 621,941 | 12.902% |
| Ministry of Road Transport and Highways | ₹ 278,000 | 5.767% |
| Ministry of Railways | ₹ 255,393 | 5.298% |
| Ministry of Consumer Affairs, Food and Public Distribution | ₹ 223,323 | 4.633% |
| Ministry of Home Affairs | ₹ 219,643 | 4.556% |
| Ministry of Rural Development | ₹ 180,233 | 3.739% |
| Ministry of Chemicals and Fertilisers | ₹ 168,500 | 3.495% |
| Ministry of Communications | ₹ 137,294 | 2.848% |
| Ministry of Agriculture and Farmers Welfare | ₹ 132,470 | 2.748% |
| Ministry of Education | ₹ 120,628 | 2.502% |
| Ministry of Jal Shakti | ₹ 98,714 | 2.048% |
| Ministry of Health and Family Welfare | ₹ 90,959 | 1.887% |
| Ministry of Housing and Urban Affairs | ₹ 82,577 | 1.713% |
| Ministry of Women and Child Development | ₹ 26,092 | 0.541% |
| Department of Atomic Energy | ₹ 24,969 | 0.518% |
| Ministry of Labour and Employment | ₹ 22,531 | 0.467% |
| Ministry of External Affairs | ₹ 22,155 | 0.460% |
| Ministry of Micro, Small and Medium Enterprises | ₹ 22,138 | 0.459% |
| Ministry of Electronics and Information Technology | ₹ 21,937 | 0.455% |
| Ministry of Power | ₹ 20,502 | 0.425% |
| Ministry of New and Renewable Energy | ₹ 19,100 | 0.396% |
| Ministry of Science and Technology | ₹ 16,628 | 0.345% |
| Ministry of Petroleum and Natural Gas | ₹ 15,930 | 0.330% |
| Ministry of Social Justice and Empowerment | ₹ 14,225 | 0.295% |
| Department of Space | ₹ 13,043 | 0.271% |
| Ministry of Tribal Affairs | ₹ 13,000 | 0.270% |
| Ministry of Commerce and Industry | ₹ 11,469 | 0.238% |
| Ministry of Heavy Industries | ₹ 7,242 | 0.150% |
| Ministry of Fisheries, Animal Husbandry and Dairying | ₹ 7,138 | 0.148% |
| Ministry of Law and Justice | ₹ 6,788 | 0.141% |
| Ministry of Development of North Eastern Region | ₹ 5,900 | 0.122% |
| Ministry of Statistics and Programme Implementation | ₹ 5,454 | 0.113% |
| Ministry of Skill Development and Entrepreneurship | ₹ 4,520 | 0.094% |
| Ministry of Textiles | ₹ 4,417 | 0.092% |
| Ministry of Information and Broadcasting | ₹ 4,343 | 0.090% |
| Ministry of AYUSH | ₹ 3,712 | 0.077% |
| Ministry of Youth Affairs and Sports | ₹ 3,442 | 0.071% |
| Ministry of Environment, Forests and Climate Change | ₹ 3,330 | 0.069% |
| Ministry of Food Processing Industries | ₹ 3,290 | 0.068% |
| Ministry of Culture | ₹ 3,261 | 0.068% |
| Ministry of Minority Affairs | ₹ 3,183 | 0.066% |
| Ministry of Earth Sciences | ₹ 3,065 | 0.064% |
| Ministry of Corporate Affairs | ₹ 2,667 | 0.055% |
| Ministry of Tourism | ₹ 2,480 | 0.051% |
| Ministry of Personnel, Public Grievances and Pensions | ₹ 2,380 | 0.049% |
| Ministry of Ports, Shipping and Waterways | ₹ 2,377 | 0.049% |
| Ministry of Civil Aviation | ₹ 2,357 | 0.049% |
| Ministry of Mines | ₹ 1,941 | 0.040% |
| The President, Parliament, Union Public Service Commission and the Secretariat of the Vice President | ₹ 1,885 | 0.039% |
| Ministry of Panchayati Raj | ₹ 1,184 | 0.025% |
| Ministry of Cooperation | ₹ 1,183 | 0.025% |
| Ministry of Planning | ₹ 837 | 0.017% |
| Ministry of Steel | ₹ 326 | 0.007% |
| Ministry of Coal | ₹ 193 | 0.004% |
| Ministry of Parliamentary Affairs | ₹ 64 | 0.001% |
| Total | ₹ 4,820,512 | 100% |
See also
[edit]References
[edit]- ^ vishal, raval. "union-budget-2024-date-time-and-key-highlights". bestnewsreport.com. Retrieved 25 July 2024.
- ^ "Budget 2024 LIVE Updates: Nirmala Sitharaman's Mega Jobs, Tax Announcements In Union Budget". NDTV.com. Retrieved 23 July 2024.
- ^ "Budget 2020". Business Standard India. Archived from the original on 13 January 2020. Retrieved 13 January 2020.
- ^ "Budget 2020: James Wilson, the man who brought budget, income tax to India". www.businesstoday.in. 31 January 2020. Retrieved 3 February 2020.
- ^ "First Union Budget, November 1947: The crying concern was to dress wounds of uprooted humanity". www.telegraphindia.com. Retrieved 3 February 2020.
- ^ "Income Tax Slabs Rate 2024-25 Highlights: New Tax Regime made more attractive for small taxpayers with revised tax slabs, higher Standard Deduction | No changes in Old Tax Regime". Financialexpress. 24 July 2024. Retrieved 25 July 2024.
- ^ "New tax regime changes explained: Income up to Rs 7.75 lakh exempt from tax, Rs 17,500 savings". India Today. 23 July 2024. Retrieved 25 July 2024.
- ^ "What is 'Angel tax' that was scrapped in Budget 2024". India Today. 23 July 2024. Retrieved 25 July 2024.
- ^ "India Stocks Decline as Capital Gains Tax in Modi's Budget Spooks Investors". Bloomberg.com. Retrieved 25 July 2024.
- ^ "India Raises Taxes to Curb Retail Frenzy in Equities Trading". Bloomberg.com. 23 July 2024. Retrieved 25 July 2024.
- ^ "Budget Verdict | India aims to simplify TDS compliance, says revenue secretary Sanjay Malhotra - CNBC TV18". CNBCTV18. 24 July 2024. Retrieved 25 July 2024.
- ^ "India Budget". indiabudget.gov.in.
External links
[edit]- "Budget 2024: Expectations, likely announcements by Sitharaman on 5 July"
- "Budget 2024: Want to reduce your tax outgo?"
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