Budget 2024 Key Highlights Live Updates: New Tax Slabs, 12.5% LTCG for India, Enhanced Section 80CCD(2) Deductions | Share Market | NSE BSE

 

Budget 2024 Key Highlights Live Updates: 

Finance Minister Nirmala Sitharaman announced the Union Budget 2024-25 in parliament on July 23. The Budget focused on agriculture, employment schemes, loans, support for MSMEs, infrastructure development, and aims to reduce the fiscal deficit from 4.9% to 4.5%.

Key changes include reduced customs duties and revised capital gain taxes. The new tax policy includes updated tax slabs. Stay tuned to our live blog for the latest updates on the Income Tax Slab, Impact on the Share Market, Budget Highlights, and Corporate Reactions.

Budget Theme:

• Employment
• Skilling
• MSMEs
• Middle Class
• Agriculture Productivity and Resilience

Agriculture:

• Revamping agriculture research for productivity and climate resilience
• National Cooperation Policy for cooperative sector development
• Promoting self-reliance in oil seeds like mustard, groundnut, soybean, and sunflower
• Introducing 109 new high-yielding and climate-resilient crop varieties
• Initiating 1 crore farmers into natural farming with certification and branding support in the next 2 years
• Establishing 10,000 bio-input resource centers

Shrimp Production & Export:

• Financing through NABARD for shrimp farming, processing, and export

Digital Public Infrastructure (DPI):

• DPI coverage for farmers and lands within 3 years
• Digital crop survey in 400 districts
• Issuance of Jan Samarth-based Kisan Credit Cards

Employment and Skilling:

• 5 schemes targeting 4.1 crore youth over 5 years with ₹2 lakh crore outlay
• Comprehensive internship scheme for 1 crore youth in top companies over 5 years
• Employment-linked incentives, including a month's wage support for first-time employees
• Women-specific skilling programs and increased workforce participation

MSME and Manufacturing Support:

• Special focus on MSMEs and manufacturing sector
• Credit guarantee scheme and term loans for machinery purchase
• Technology support package for MSMEs
• SIDBI to open 24 new branches for MSME clusters

Financial Initiatives:

• Mudra loan limit increased from ₹10 lakh to ₹20 lakh for previous borrowers
• Financial support for higher education loans up to ₹10 lakh in domestic institutions

Infrastructure and Regional Development:

• Rental housing in PPP mode for industrial workers
• ₹15,000 crore financial support for Andhra Pradesh
• New airports, medical facilities, and sports infrastructure for Bihar

Economic Outlook:

• Inflation moving towards a 4% target
• India’s economic growth seen as a “shining exception”
• Focus on job creation and boosting consumption, benefiting consumer goods, real estate, and the auto sector

Social Welfare:

• Extension of PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) for five years
• Over ₹3 lakh crore allocated for schemes benefiting women and girls

Budget Estimates 2024-25:

• Total Receipts: ₹32.07 lakh crore
• Total Expenditure: ₹48.21 lakh crore
• Net Tax Receipts: ₹25.83 lakh crore
• Fiscal Deficit: 4.9% of GDP
• Gross Market Borrowings: ₹14.01 lakh crore
• Net Market Borrowings: ₹11.63 lakh crore

Income Tax Rate Structure:

• ₹0-3 lakh: Nil
• ₹3-7 lakh: 5%
• ₹7-10 lakh: 10%
• ₹10-12 lakh: 15%
• ₹12-15 lakh: 20%
• More than ₹15 lakh: 30%
• Standard Deduction increased to ₹75,000

Capital Gains Tax:

• Short term: 20%
• Long term: 12.5% on financial assets
• STT on derivatives raised to 0.02%

Related Videos:

Income Tax Budget 2024: FM Rewards New Tax Regime, Revises Slabs, Standard Deduction Now ₹75,000

Also Read:

India LTCG at 12.5%! Compare Capital Gains Tax Structures in China, US, and Other Countries

Investors Disappointed with New Capital Gains Tax Hike

Domestic equity investors are a bit disappointed with the long-term capital gains tax increase from 10% to 12.5%, effective immediately. Additionally, the short-term capital gains tax has been raised from 15% to 20%, and there's a sharp increase in STT on futures and options trades. This has raised concerns that equity investments might be discouraged in the future.

"Just finished wiping my tears after the massive hikes in capital gain taxes, both for long-term and short-term," said market guru Shankar Sharma in an interview with BT TV.

Samir Arora of Helios Capital, without naming anyone, suggested on X (formerly Twitter) that the stock market should learn from cigarette makers, who have shown the government that increasing taxes too much can reduce overall tax collections. "All fund managers and brokers I saw on TV said that the tax is not a problem, so who will protest," he added.

In 2004, the Securities Transaction Tax (STT) replaced the long-term capital gains (LTCG) tax. However, the 2018 Budget reintroduced LTCG at 10% on annual gains over Rs 1 lakh without removing STT. Now, the government has revised the STT, STCG, and LTCG. The exemption limit for capital gains has been raised to Rs 1.25 lakh.

Finance Minister Nirmala Sitharaman did not change the LTCG tenure for equities, which remains at one year, compared to two years for other asset classes. This move aims to harmonize LTCG across different asset classes like listed and unlisted equity, real estate, gold, gold/silver ETFs, debt mutual funds, bonds, and REITs.

Related Videos:

What's Behind Balanced Market Reaction On STT Changes, Capital Gains Tax Hike? |Trideep Bhattacharya

Also Read: 

NPS gets more attractive for salaried under new tax regime; deduction under Section 80CCD(2) increased

Link Below: 

https://www.msn.com/en-in/money/news/nps-gets-more-attractive-for-salaried-under-new-tax-regime-deduction-under-section-80ccd-2-increased/ar-BB1qwmUE?ocid=msedgntp&pc=W069&cvid=b6171cc4f7f74b6e98a1bc2d1ace13cd&ei=31