Key Highlights from the Latest Union Budget for Taxpayers and Businesses in 2024

Introduction:

The recent Union Budget announcement has brought forth several significant changes that will impact taxpayers and businesses in India. In this blog post, we will delve into the key highlights from the budget and analyze their potential implications.

Standard Deduction Increase for Salaried Employees and Pensioners
One of the notable changes proposed in the budget is the increase in the standard deduction for salaried employees. The standard deduction has been raised from Rs. 50,000 to Rs. 75,000, providing much-needed relief to salaried individuals. Additionally, the deduction on family pension for pensioners has been enhanced from Rs. 15,000 to Rs. 25,000, benefiting around 4 crore salaried individuals and pensioners.

Revised Tax Rate Structure

The new tax regime has also seen a revision in the tax rate structure. The proposed changes are as follows:

• Income from Rs. 0 to Rs. 3 lakh: Nil
• Income from Rs. 3 to Rs. 7 lakh: 5%
• Income from Rs. 7 to Rs. 10 lakh: 10%
• Income from Rs. 10 to Rs. 12 lakh: 15%
• Income from Rs. 12 to Rs. 15 lakh: 20%
• Income above Rs. 15 lakh: 30%

These changes are expected to result in a tax saving of up to Rs. 17,500 for salaried employees in the new tax regime.

Read also: How to Start a Business in 2024: Your Guide from Dream to Reality

Simplification of Capital Gains Taxation

The budget also proposes to simplify the capital gains taxation. Short-term gains on certain financial assets will now attract a tax rate of 20%, while long-term gains on all financial and non-financial assets will be taxed at 12.5%. Additionally, the limit of exemption of capital gains on certain financial assets has been increased to Rs. 1.25 lakh per year.

Employment-Linked Incentive Schemes

To boost employment, the government has introduced three employment-linked incentive schemes:

1. Scheme A: First Timers Scheme – Providing one-month wage to all persons newly entering the workforce in the formal sector.
2. Scheme B: Job Creation in Manufacturing – Incentivizing additional employment in the manufacturing sector for first-time employees.
3. Scheme C: Support to Employers – Reimbursing employers up to Rs. 3,000 per month for two years towards the EPF contribution for each additional employee.

These schemes are expected to benefit 210 lakh youths, 30 lakh youth entering employment, and 50 lakh additional persons, respectively.

Infrastructure Development in Bihar

The budget also includes provisions for the development of new airports, medical colleges, and sports infrastructure in Bihar, along with additional allocation to support capital investments. The government will also facilitate special financial support through multilateral development agencies for the state’s capital requirements.

Download Budget Report 2024-2025 PDF

Here is official Budget Report on BUDGET 2024-2025 by NIRMALA SITHARAMAN, Click here to Download PDF

Conclusion

The Union Budget 2023-24 has introduced several noteworthy changes that will impact taxpayers and businesses. From increased standard deductions and revised tax rates to simplified capital gains taxation and employment-linked incentive schemes, the budget aims to provide relief and support to various stakeholders. As we move forward, it will be crucial to monitor the implementation and impact of these measures on the Indian economy.