Finance Minister Nirmala Sitharaman made several announcements in her Budget speech today. The finance minister unveiled initiatives to boost jobs and exports. In a big relief for taxpayers using the new tax regime, Sitharaman proposed revised tax rates and enhanced standard deduction to ₹75,000.

"As a result, salaried employees can save up to ₹17,500 in income tax, offering significant relief and promoting greater disposable income for taxpayers," says Finance Minister Nirmala Sitharaman," Sitharaman says during her Budget speech. As per data available for the last fiscal, more than two-thirds (70%) have availed the new personal income tax regime.

Here are the highlights of Budget 2024-25:

4:40 pm The abolition of angel tax for all investor classes is a gamechanger for startups looking to meet their funding needs, says Haigreve Khaitan, senior partner, Khaitan & Co. "The announcement of focused schemes to boost employment and skilling for over 4 crore young Indians, along with the direct benefit transfer scheme for those entering the workforce are necessary steps to tackle the rising concerns of unemployment in the country," says Khaitan.

4:30 pm The measures pertaining to tax rates on capital market transactions – Securities Transaction Tax on derivatives, Long Term Capital Gains tax, and Short-Term Capital Gains tax – are aimed at bringing in greater stability in the equity markets by incentivising long-term investment activity and curbing the derivatives segment, where traded volume has risen over 99%, says Subha Sri Narayanan, director, CRISIL Ratings. "There could be an impact on market volume in the near-term that, in turn, could affect the revenue of brokerage houses which have enjoyed rising profitability because of the market upcycle. At the same time, they have also had to realign their business models to manage the evolving regulatory environment, with the most recent change being the revision in the charges levied on stockbrokers by market infrastructure institutions," says Narayanan.

Securities Transaction Tax (STT) will be applicable prospectively from October 2024.

4:00 pm The government has utilised extra revenues to speed up fiscal consolidation, says CRISIL. "With the fiscal deficit revised down 20 basis points from the interim budget to 4.9% for this fiscal, it will help ease government security yields and create room for corporate borrowings. We expect sovereign yields to settle at 6.8% by the end of this fiscal," says Crisil.

Better revenue collections are being used to maintain the capex thrust and raise revenue expenditure partly, while the rest is being used to trim the fiscal deficit, Crisil says, adding that the tax net is being spread wider.

3:45 pm India’s final union budget for fiscal 2024-25 maintains the fiscal consolidation path announced in the interim budget, says Gene Fang, associate managing director, Moody's Ratings. "Higher gross GST and direct tax collections are expected to drive revenue growth in the ongoing fiscal year, while a stronger than expected dividend payout from the Reserve Bank of India has provided additional fiscal space, although future dividends will depend on market conditions," Fang says.

"Policy continuity is reflected in the government’s capital spending on infrastructure which remains around 23% of total expenditure, although this remains below the 24% spending on interest payments. Overall, the budget is credit positive as it is expected to keep fiscal deficits at around 4.9% of GDP, lower than the 5.1% of GDP announced in the interim budget," Fang says, adding this places the government's goal of achieving a 4.5% of GDP deficit by fiscal 2025-26 within reach.

3:34 pm On first-time employees getting one month's salary in three instalments up to ₹15,000, Finance Minister Nirmala Sitharaman says an employee will get a second instalment only after he/she undergoes a financial literacy course.

3:30 pm "We expect more companies to invest in India with the reduction in corporate tax for foreign firms," says finance secretary T. V. Somanathan.

1:00 pm The Budget focuses on employment, skilling, MSMEs, and the middle class, says the finance minister. "I am happy to announce the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a five-year period with a central outlay of ₹2 lakh crore," says Nirmala Sitharaman.

12:50 pm Minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics. Finance Minister Nirmala Sitharaman proposed to fully exempt customs duties on 25 critical minerals and reduce basic customs duty on two of them. This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors, says the finance minister.

12:43 pm To enhance domestic value addition in gold and precious metal jewellery in the country, Finance Minister Nirmala Sitharaman proposed to reduce customs duties on gold and silver from 15% to 6%.

12:40 pm Indian professionals working in multinationals get ESOPs and invest in social security schemes and other movable assets abroad. Non-reporting of such small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to ₹20 lakh is proposed to be de-penalised, says FM Nirmala Sitharaman.

12:37 pm To improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased from 10% to 14% of the employee’s salary, says Nirmala Sitharaman. "Similarly, deduction of this expenditure up to 14% of salary from the income of employees in private sector, public sector banks and undertakings, opting for the new tax regime, is proposed to be provided," the finance minister says.

12:34 pm Security Transactions Tax on futures and options of securities is proposed to be increased to 0.02% and 0.1% respectively. "I propose to tax income received on buy back of shares in the hands of the recipient," says Finance Minister Nirmala Sitharaman.

12:31 pm Standard deduction under the new tax regime increased from ₹50,000 to ₹75,000. The tax rate structure under the new tax regime has been revised.

The new tax rate for ₹0-3 lakh slab is nil. The tax rate between ₹3 lakh and ₹7 lakh slab will be 5%. The tax rate for ₹7-10 lakh, ₹10-12 lakh, ₹12-15 lakh and ₹15 lakh and above is 10%, 15%, 20% and 30% respectively.

Deduction on family pension for pensioners is proposed to be enhanced from ₹15,000 to ₹25,000.

"As a result of these proposals, revenue of about ₹37,000 crore-₹29,000 crore in direct taxes and ₹8,000 crore in indirect taxes – will be forgone while revenue of about ₹30,000 crore rupees will be additionally mobilised. Thus, the total revenue forgone is about ₹7,000 crore annually," says the finance minister.

12:30 pm To attract foreign capital for development needs, FM Sitharaman reduces corporate tax rate on foreign companies from 40% to 35%.

12:25 pm Angel tax abolished. "To bolster the Indian startup ecosystem and boost the entrepreneurial spirit, I propose to abolish angel tax for all classes of investors," says FM Nirmala Sitharaman.

12:15 pm Finance Minister announces rationalisation of capital gains tax. Short-term gains on financial assets shall attract a tax rate of 20%, says FM Nirmala Sitharaman. Long-term gains on all financial and non-financial assets will attract 12.5% tax.

"For the benefit of lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to ₹1.25 lakh per year," says FM Nirmala Sitharaman.

Listed financial assets held for more than a year will be classified as long term. Unlisted financial assets and non-financial assets will have to be held for two years to be classified as long term.

12:03 pm Customs duty on mobile phone and parts reduced. "With a threefold increase in domestic production and almost a 100% jump in exports of mobile phones over the last six years, the Indian mobile industry has matured. In the interest of consumers, I now propose to reduce the BCD on mobile phones, PCB and mobile chargers to 15%," says Nirmala Sitharaman.

12:00 pm "To provide relief to cancer patients, I propose to fully exempt 3 more medicines from customs duty. I also propose changed in BCD on X Ray tubes," says FM Sitharaman.

11:56 am Fiscal deficit is estimated at 4.9% of GDP, says Finance Minister Nirmala Sitharaman. "Fiscal consolidation path announced by me in 2021 has served our economy very well. We aim to reach the deficit below 4.5% next year. The government is committed to staying the course. From 2026-27 onwards, our endeavour will be to keep the fiscal deficit such that central government's debt will be on a declining path as percentage of GDP," says the finance minister.

11:52 am The government will formulate an 'Economic Policy Framework' to delineate the overarching approach to economic development and set the scope of next-generation reforms for facilitating employment opportunities and sustaining high growth, says Finance Minister. "Our government will initiate and incentivise reforms for improving productivity on factors of production, facilitating markets and sectors to become more efficient. These reforms will cover all land, labour, capital and entrepreneurship," says Nirmala Sitharaman.

"For promoting competitive federalism and incentivising states for faster implementation of reforms, I propose to earmark a significant part of the 50-year interest-free loan," says FM.

11:50 am To expand the space economy by five times, a venture capital fund of ₹1,000 crore will be set up, says FM Nirmala Sitharaman.

11:46 am FM announces 'Pradhan Mantri Jan Jatiya Unnat Gram Abhiyan' for improving socio-economic condition of tribal communities by adopting saturation coverage for tribal families in over 63,000 villages tribal majority villages and aspirational districts for improving 5 crore lives.

11:45 am "Recognising Andhra Pradesh's need for capital, we will support special financing support through multilateral agencies. In the current financial year, ₹15,000 crore will be arranged with additional amounts in future years," says Finance Minister.

11:44 am 3 crore homes under PM Awas Yojana in rural and urban areas have been announced for which allocations are being made, says FM Sitharaman.

11:37 am The government will launch a comprehensive internship scheme for over 1 crore youth in 5 years in 500 top companies which will offer exposure for 12 months in diverse domains with an internship stipend of ₹5,000 and a one-time assistance of ₹6,000.

11:34 am FM announces a provision of ₹2.66 lakh crore for rural development including rural infrastructure.

11:30: The government will provide financial support for loans up to ₹10 lakh for higher education in domestic institutions. E-vouchers will be given to 1 lakh students every year for annual interest subvention of 3% of the loan amount, says Nirmala Sitharaman.

11:25 am 20 lakh youth will be skilled over a five year period, says finance minister.

11:23 am The government will set up working women hostels in collaboration with industry, says FM Sitharaman.

11:20 am Scheme C will support employers: This employer focused scheme will see the government reimburse employers up to ₹3,000 per month for two years towards EPFO contributions for each additional employee. This initiative aims to incentivise additional employment of 50 lakh persons.

11:19 am FM announces a scheme for job creation in the manufacturing sector. This scheme will provide incentives to both employees and employers on EPFO contributions for the first four years of employment. It is expected to benefit 30 lakh people entering the job market.

11:17 am Direct benefit transfer of one-month salary in three instalments to first-time employees will be up to ₹15,000. Eligibility is for a salary of up to ₹1 lakh per month. The scheme is expected to benefit 210 lakh youths, says FM Sitharaman.

11:15 am Scheme A for First Timers: This scheme will provide one-month wage to all workers newly entering the workforce in all formal sectors, says FM Nirmala Sitharaman.

Directy benefit transfer of one month salary to first time employees. Eligibility of Scheme to benefit 210 lakh youths

11:13 am Finance Minister announces Employment Linked Incentive scheme. The government will implement three schemes as part of the PM package. These will be based on enrolment in EPFO and focus on first-time employees and support employers as well.

11:07 am: "As mentioned in the interim Budget, we need to focus on 4 different castes, the poor, women, youth and the farmer. For farmers, we announced higher Minimum Support Prices for all major crops delivering on the promise for at least a 50% margin over cost. PM Garib Kalyan Anna Yojana was extended for 5 years benefitting more than 80 crore people," says Finance Minister.

11:03 am "Inflation continues to be low. Steps being taken to ensure perishable goods reach market on time," says the finance minister.

Ahead of the Budget 2024-25 presentation in Parliament today, Sitharaman posed with the 'bahi-khata' which carries the Budget tablet outside the finance ministry.

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