In this article we are going to talk about the new budget update 2024 for India.

India Budget Update 2024 – Full Highlights

Income Tax

• Standard deduction proposed to increased to ₹75,000 from ₹50,000.
• Angel tax removed.
• A comprehensive review of the Income Tax Act 1961 has been announced. Proposed to be completed in 6 months.
• TDS rate on e-commerce operators to be cut to 0.1% from 1%.
• Decriminalization of TDS delay up to the filing of tax date.
• 20% TDS on repurchase by MF or UTI withdrawn.
• Payments made by a firm to its partner shall be subject to TDS at 10% for aggregate amounts more than ₹20,000 in a financial year.
• TCS on notified luxury goods – 1% on notified goods of value exceeding 10 lakh rupees.
• 2% Equalization Levy to be withdrawn.
• Corporate tax rate to be reduced on foreign companies from 40 to 35 per cent.
• Personal Income Tax Revised Slabs for those adopting new tax regime —
  0-3L – Zero
  3-7L – 5%
  7-10L – 10%
  10-12L -15%
  12-15L – 20%
  15 & above – 30%
• Standard deduction to increase to Rs 75,000 from Rs 50,000.
• Litigations – Monetary limit for filing Tax appeals increased to Rs 60 lacs for ITAT, Rs 2 crores for high courts and Rs 5 crores for Supreme Court.

Capital Gain Tax

• Long-term capital gains increased to 12.5% (10% earlier).
• Short-term capital gains tax increased to 20% (15% earlier).
• The exemption limit for capital gains will be set at ₹1.25 lakh per year.
• STT on F&Os raised from 0.01 percent to 0.02 percent.

Customs Duty

• Government cuts duty on mobiles and accessories to 15%
• Customs duty on gold and silver to be reduced to 6%, platinum to 6.4%
• Proposed to reduce the BCD on mobile phones, mobile PCDA (Printed Circuit Design Assembly), and mobile charges to 15%.
• Exemption from customs duty for three specific cancer medicines.
• Duty-free imports of lithium, copper, and cobalt.
• Expand the list of exempted capital goods used in manufacturing of solar cells, panels
• Reduced customs duty on MDI used in spandex yarn production.
• Exemption of customs duty on connector manufacturing.

GST

• Tax structure to be rationalized

Indian Budget Update 2024 and its Support for MSMEs

• New loan scheme for MSME machinery purchases without collateral.
• ₹100 crore guarantee fund for manufacturing MSME credit.
• Technology support package for MSMEs.
• 24 new SIDBI branches to serve MSME clusters.
• Increased Mudra loan limit to ₹20 lakh for repaid borrowers.
• Integrated tech platform to improve IBC outcomes.
• Lower TReDS onboarding threshold to ₹250 crore.
• Financial support for 50 food irradiation units.
• E-commerce export hubs to boost MSME and artisan exports.
• Simplified LLP closure process.
• ₹1000 crore venture capital fund for space sector.
• ₹1 lakh crore fund for private-driven research.
• Simplified FDI rules.

So that was all about the India Budget Update for 2024.