On July 23, Budget 2024, the FM made the Final Budget announcement. She said that the middle class, MSME, employment, and skill development are the main priorities of this year's budget. She also listed the following as the budget's priorities:
Productivity and Resilience in Agriculture
Employment and Skilling
Inclusive Human Resource Development and Social Justice
Manufacturing and Services
Urban Development
Energy Security
Infrastructure
Innovation, Research and Development
Next Generation Reforms
The Budget included many changes to both direct and indirect taxation.
The following are changes to the new tax regime's tax structure:
Rs.0 to Rs.3 lakh - NIL
Rs.3 to Rs.7 lakh - 5%
Rs.7 lakh to Rs.10 lakh - 10%
Rs.10 lakh to Rs.12 lakh - 15%
Rs.12 lakh to Rs.15 lakh - 20%
More than Rs.15 lakh - 30%
The new tax regime will save the taxpayer Rs. 17,500.
The new tax regime has raised the standard deduction from Rs. 50,000 to Rs. 75,000. The family pension deduction now amounts to Rs. 25,000 instead of Rs. 15,000.
Non-reporting of Foreign Assets: There would be no criminal penalties for movable assets up to Rs. 20 lakh. The two percent equalization levy will be eliminated. Up to 20 lacs in foreign assets and income (ESOPs and RSU) that are not reported will no longer be considered a criminal offense.
STT for futures and options increased to 0.02% and 0.1%, respectively. Recipients will be responsible for paying the buyback tax.
The angel tax has been repealed for all taxpayers—the corporate tax rate for international companies was reduced from 40% to 35%.
To address the backlog of appeals, more officers will be appointed to reduce litigation. Vivaad se Vishwaas 2024 shall be adopted. The monetary limit for appeals would be increased to Rs.2 crore and Rs.5 crore, respectively.
A 20% tax will be applied to short-term capital gains on specific financial assets. Long-term capital gains will be taxed at 12.5% on both financial and non-financial assets. The exemption ceiling for capital gains on certain financial assets has been increased from Rs.1 lakh to Rs.1.25 lakh.
The TDS rate on UTIs and mutual funds has been removed. TDS rates for e-commerce are planned to be decreased from 1% to 0.1%.
Over the next five years, 1 crore youth would get the opportunity to intern in 500 leading companies for 12 months, with a monthly allowance of Rs 5,000 and a one-time fee of Rs 6000. Companies will incur training fees and a 10% allowance as part of their CSR.