“2024 Budget’s key updates on taxation and major development initiatives”
Finance Minister Nirmala Sitharaman represented the Budget 2024 in Parliament on Tuesday 23rd July, 2024 at 11am. Budget 2024 will focus upon key features like:
- Employment
- Skilling
- MSME
- Middle Class
Nirmala Sitharaman announced PM’s scheme to facilitate employment for almost 4crores youth of India over the 5years of Plan.
Scheme ‘A’: New employees in formal jobs will receive 1month’s salary in three payments upto a total of Rs.15000.
This approach expected to benefit 210lakhs youth which can help ease their financial transition into a new jobs.
Scheme ‘B’: Incentives for both employers for EPFO contributions at a set rate for the first 4years. It is expected to benefits over 30lakh youth.
Scheme ‘C’: Government will reimburse EPFO contribution upto Rs.3000 per month for 2 years for all new hires.
Budget 2024: Skilling Programme
It has been estimated that over 30 lakh youth will be skilled over the next 5 years. It will also focus on facilitating higher participation of women in the workforce in collaboration with industry.
Government would provide loans upto 7.5lakh with a guarantee from government promoted Funds. It uis expected to benefit 1.25lakh students over the next 5 years.
Government would also give financial loans upto Rs.10lakh for the higher education in domestic institutions only with the annual interests rate of 3%.
Budget 2024: Direct Tax Proposals
Before 2018, there was no tax on Long Term capital gain (LTCG) from selling assets and now it has been increased upto 12.5% without any indexation benefits.
Short Term Capitals Gain (STCG) on financial assets becomes 20% taxation but earlier it was 15%.
The data provided below for new tax regime outlines the key features of the budget.
| Salary Slab | Taxation in % |
| 0-3 Lakh | 0% |
| 3-7 Lakh | 5% |
| 7-10 Lakh | 10% |
| 10-12 Lakh | 15% |
| 12-15 Lakh | 20% |
| >15 Lakh | 30% |