Highlights of Interim Budget 2024- 2025

The finance minister Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament on February 1st, 2024. As the Lok Sabha elections are scheduled for this year, the finance minister will present an interim budget instead of a full-year budget. This will be presented at a joint session of the Rajya Sabha and Lok Sabha without making any significant changes. In the new tax regime, the following rules changed in 2023.

Highlights of Union Budget 2024 

Nirmala Sitharaman said the focus will be on four groups. These groups are on highest priority - poor, women, youth, and farmers. 

Government Schemes for the Poor are as follows:

• Direct Benefit Transfer of Rs. 34 lakh crore using PM Jan Dhan accounts has led to huge savings for the government. This has been realized through the avoidance of leakages, savings have helped to provide more funds for the welfare of the poor.
• PM SVANIDHI has provided credit assistance to 78 lakh street vendors, from that total, 2.3 lakh have received credit for the third time 
• PM JANMAN Yojana reaches out to Particularly Vulnerable Tribal Groups
• PM Vishwakarma Yojana provides end-to-end support to artisans and craftspeople 
• The scheme for empowerment of Divyang and transgender people reflects our resolve to leave no one behind

Highlights of Interim Budget 2024-25

On Taxation 

• FY25 fiscal deficit seen at 5.1% vs FY24 revised estimate of 5.8%
• FY25 nominal GDP growth seen at 10.5%
• FY25 divestment target at Rs 50,000 crore
• FY25 capex seen at Rs 11.1 lakh crore vs FY24 revised estimate of Rs 9.50 lakh crore

On Health

• Ayushman Bharat scheme to cover all Asha and Anganwadi workers and helpers
• Govt to encourage vaccination for girls aged 9-14 for prevention of cervical cancer
• Govt to focus on setting up more medical colleges by utilising existing hospital infrastructure

On Railway

• 40,000 rail bogies to be converted to Vande Bharat standards
• Metro Rail, Nano Bharat will be expanded to more cities
• 3 Railways corridors - port connectivity corridor; energy, mineral, and cement corridor; and high traffic density corridor-will be built

On Infrastructure

• Focus on improving tourist infrastructure in Lakshadweep
• Support for middle class to build their own houses
• 5 integrated aqua parks to be set up
• Govt to pay most attention to develop eastern region

On Scheme

• PM-Kisan outlay (govt's flagship cash transfer scheme) unchanged at Rs 60,000 crore
• PM Awas Yojana (credit-linked subsidy scheme) spend in FY25 seen at Rs 80,671 crore VS FY24 revised estimate of Rs 54,103 crore
• PM Garib Kalyan Anna Yojana outlay (food security welfare scheme) at Rs 2.05 lakh crore

On Achievements

• 25 crore people brought out of poverty in past 10 years
• Success of self-help groups empowered 1 crore women to become Lakhpati didis
• Direct benefit given to 11.8 crore farmers per year under PM Kisan scheme
• Sanctioned loans worth Rs 22.6 lakh crore to 43 crore people under PM Mudra
• Direct transfer of Rs 34 lakh crore using PM Jan-Dhan led to savings for govt
• PM SVANIDHI gave credit assistance to 78 lakh street vendors
• Gave 70% houses to women in rural areas under PM Awas Scheme

On Fiscal Deficit 

• No changes in taxation, both direct and indirect
• Propose to extend tax exemptions for some International Financial Services Centre (IFSC) to March 31, 2025
• To withdraw old disputed direct tax demands of up to Rs 25,000 till FY10, and Rs 10,000 for 2010-11 to 2014-15

Is the Taxpayer Budget 2024 Expectations Will be the Same?

Section 80D Deduction Limit

Under this section, a taxpayer can claim a tax deduction for medical insurance premiums. The insurance policy can be for self, spouse, parents and dependent children. Only the individuals and Hindu Undivided Family (HUF) can claim this deduction. The individual can claim up to Rs. 25 thousand for members (under 60) and Rs. 50 thousand for members (60+).

New Tax Slab

Surcharge in Income Tax

If the individual’s net taxable income exceeds a specified level, then the surcharge is levied. A surcharge is levied on the income tax payable amount before the levy of cess. 

So, as per the income tax law, if the income of an individual exceeds Rs. 50 lakh, then surcharge is applicable. In the budget 2023, the government announced multiple surcharge rates and these are as follows:

TDS Compliance for Purchasing Home

If the purchase of property exceeds Rs. 50 lakhs then the 1% TDS is deducted. The process of TDS filing is easier for Indian residents using Form 26 QB. But this becomes more complex for Non-Resident Indians (NRIs).

Tax on Capital Gains

The current process of capital gains in the tax regime is tough and includes factors such as asset classes, holding periods, tax rates and residency status. The applicable tax is different on long-term capital gains tax (LTCG) and short-term capital gains tax (STCG).

Key Focus of Budget 2024

According to CNBC “the government is placing a significant emphasis on addressing inflation. India's retail inflation rose to a three-month high of 5.55% in November on rising prices of kitchen essentials. Showed data released by the National Statistics Office (NSO) on Tuesday (December 12).” 

The budget will be presented in less than 30 days. The key focus of the budget 2024 will be managing inflation and the government is concerned about high commodity prices. stay connect with this post to get all information and highlights of budget 2024-25.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.