Budget 2024: From New Income Tax Slabs to Digital Revolutions, Key Announcements by Modi Government in the Previous 10 Budgets
The introduction of the LTCG Tax on shares was a move that received mixed reactions from Indians. While Long Term Capital Gains Tax had been a key source of revenue for various elements, the equity market was exempted from this taxation.
Mumbai, January 29: Interim Budget 2024 will be announced on February 1 at 11 am by Finance Minister Nirmala Sitaraman. The annual observance of the Union Budget presentation is a key event that helps project the way ahead for the coming year, areas and spending budgets for different sectors and helps people to plan their personal investments and spending as well.
From income tax changes to taxation on returns and spending on agriculture, everything can be impacted by the Union Budget. As we prepare to witness Budget 2024 ahead of the general elections, here are some key announcements made by the Modi Government in the past decade. Union Budget 2024-25: What Is Interim Budget? How Is It Different From the Annual Budget? All You Need To Know About.
New Income Tax Slabs
One of the most significant changes that were introduced in the Union Budget was the highly anticipated New Tax Regime that was brought forward in 2020. While the expectations of reducing the level of taxation on corporate employees were high, the New Tax Regime was mainly beneficial to entry-level employees and those with lower incomes. While the new tax regime does not offer tax deductions for most tools, it is focused on simplifying the process of taxation in our country.
LTCG Tax
The introduction of the LTCG Tax on shares was a move that received mixed reactions from Indians. While Long Term Capital Gains Tax had been a key source of revenue for various elements, the equity market was exempted from this taxation. This was one of the biggest points of attraction for mutual funds, however the inclusion of equity products on LTCG Tax considerably impacted the rate of return on various key investments made in the capital markets. Union Budget 2024-25 Expectations in Real Estate Sector: From Interest Rates to Infrastructure Development, Know What Realtors Expect From the Interim Budget This Year.
Agriculture
There have been several improvements and new scheme introductions that are focused on boosting the livelihood of farmers and ensuring agriculture - as an industry - continues to flourish. In fact, in the previous budget, agricultural credit was raised to Rs 20 trillion, with a specific focus on dairy, fisheries, and animal husbandry. Additionally a new sub-scheme under PM Matsya Sampada Yojana with a targeted investment of Rs 6,000 crore. This aimed to empower fish vendors, fishermen, and micro- and small businesses (MSMEs).
Tax Deductions
In addition to the New Tax Regime, various key changes were made to the tax deductions and other aspects of taxation as well. Some key highlights of the tax changes made in the last few years include increasing the tax exemption limit to Rs 3 lakhs per annum, Corporate tax rate reduced to 25 per cent for companies with annual turnover up to Rs. 400 crore, and more. The tax-related changes brought forward in the last decade have helped businesses to continue to flourish and benefit from various schemes that reduce the burden of taxation they usually face. Union Budget 2024 Expectations in Auto Industry: From Status Quo on GST to Policy Changes, Know What Auto Experts Expect From the Interim Budget This Year.
Digital Revolutions
This government has always been focused on promoting going digital, and the previous budgets have also ensured this is a key area for investments and plans. In the Union Budget 2023, the government introduced various measures to promote the adoption of digital platforms and encouraged the digitization of paper-based documents by proposing an enhanced version of DigiLocker in the form of Entity DigiLocker.
It is important to note that the reason that Budget 2024 is an interim budget is that India is preparing for General Elections 2024, and the complete budget will be presented by the newly elected members of the government in June.
(The above story first appeared on LatestLY on Jan 29, 2024 06:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).