Budget 2024: Critical Priorities and Tear-jerking Income Tax Announcements

• Productivity and agriculture:1.52 Lakh crore INR for Agriculture sector.(27 Lakhs crore more as that of 2023)
• Employment and skill: Three schemes introduced.20 lakhs youths will be trained in five years.100 ITIs will be developed.
• 21400 Crore Amritsar-Kolkata, Hyderabad-Bangalore, Visakhapatnam Industrial corridor. Special Assistance for Andhra Pradesh, Bihar, Himachal Pradesh. Special Reconstruction package, Special temple corridor package, Rajgir jain Site, Polavaram Projects. Ally states get big share.
• Manufacturing sector and Service: Promotion of MSMEs. Credit support to MSME during stress period by PSU Banks. Mudra Loans limit increased. E-commerce export hubs in public-private partnerships. Setting up of industrial Parks. Water supply and sanitation, sewage treatments, use of treated water for irrigation
• Energy Sector: Free solar panels, PM Surya Ghar Muft Bijili Yojana,800 Commercial plant of NTPC and BHEL. Private sector investment in infrastructure. Flood Mitigation, PM Gram Sadak Yojana 4^th stage, Energy transition package, EV boost by 2030
• Next Generation reforms: Improving productivity, Land Administration, Digitization of survey maps, Rural land reforms, NPS, More FDI, Use of Indian Rupee in foreign Transactions, Nalanda tourism package

GST and Personal income tax.

• Restructuring customs rates, 25 critical minerals exempted from customs duty, Solar panels, Marine products. Big announcement for cancer treatments, customs duty reduction of mobile phones and charger, Platinum. Customs duty cut for leather ,
• Comprehensive review of Income tax: More than two-thirds availed new tax regime, Big changes in capital Gain tax, Charity exemptions, TDS rebate on e-commerce, TDS delay decriminalized, Angel tax abolished, Limit of capital financial tax increased, Standard deduction Limit increased, Tax savings in New tax regime-minor savings for salaried class. No tax change in old tax regime

It is regretted that the Finance Minister has increased the tax rates on capital gains, affecting both short-term and long-term investments. The new rates are set at 20% for short-term gains (up from 15%) and 12.5% for long-term gains (up from 10%), with the exemption limit adjusted to Rs. 1.25 lakh per year (from the current Rs. 1 lakh).

While this news may be disheartening for investors, the market is expected to absorb the impact. Investors have benefited from the market’s strong performance, which has provided ample profit opportunities.