THE UNION BUDGET 2024
Union Finance Minister Smt. Nirmala Sitharaman presented Union Budget 2024 on 23rd July 2024 which emphasizes the welfare of key sectors including Annadata (farmers), Garib (the poor), Mahilayen (women), and Yuva (youth). With a central focus on employment, skilling, MSMEs, and the middle class, the budget sets the stage for inclusive growth.
The government has outlined Nine Priorities to achieve the vision of a “Viksit Bharat” (Developed India) by 2047.
This budget heralds significant reforms and policy announcements, designed to strengthen the nation’s economy and drive sustainable growth. Below are the major highlights of the Union Budget 2024.
Direct Tax
Following are the Income Tax Rate slabs for individuals under both the old and new tax regimes:

Key Highlights in Direct Tax
- Standard Deduction for salaried employee increased from 50,000/- to 75,000/- .
- Deduction on family person for pensioners increased from 15000/- to 25,000/- .
- Corporate tax rate on foreign companies reduced from 40% to 35%.
- U/s 80CCD: NPS contribution limit for employers in the private sector raised from 10% to 14% of the employee’s basic salary.
- TDS on sale of immovable property has been clarified as Rs.50 lakh limit is per immovable property and not her transferor.
- The equalisation levy of 2% on consideration received or receivable for e-commerce supplies or services is abolished with effect from the 1st day of August 2024.
Key changes in taxation of capital Gains
- STCG on sale of listed equity shares & equity-oriented MF-Tax Rate is increased to 20% from 15%.
- LTCG on sale of listed equity shares & equity-oriented MF-Tax rate is increased to 12.50% from earlier 10%.
- The limit of exemption of long-term capital gains on the sale of listed financial assets has been increased to Rs.1.25 lakh.
- There will only be two holding periods, 12months and 24 months, to determine whether the capital gains are short-term or long-term.
- Henceforth, long-term capital assets will not receive an indexation benefit. However, properties held before 2001 will continue to receive indexation benefits.
- Listed debentures and listed bonds will be taxed at 12.5% in case of long –term holding.
- Unlisted debentures and unlisted bonds will be taxed as short-term asset u/s 50AA, irrespective of the period of holding.
- Capital Gain tax rates for non-residents were made at par with residents.
To gain a clearer understanding of the changes in capital gains tax rates, please refer to the following table. We have provided a comparison of the old and new tax rates for both listed and unlisted assets.


Key changes for Partnership Firms
Increase in limit of remuneration to working partners of a firm allowed as deduction u/s 40(b).
- On the first Rs.6,00,000 of the book profit or in case of a loss, the limit of remuneration is increased to Rs.3,00,000 or at the rate of 90% of the book profit, whichever is more.
- On the balance of the book profit- at the rate of 60%.
TDS on payment of salary, remuneration, interest, bonus or commission by partnership firm to partners (New Section 1947):
- TDS is applicable for payments such as salary, remuneration, commission, bonus, and interest to any account (including capital account) of the firm’s partner for aggregate amounts of more than Rs 20,000 in the financial year.
- Applicable TDS rate will be 10% (w.e.f 01-04-2025).
Other key highlights in income Tax
- Reassessment Time Limit reduced to 5 years from the end of the relevant assessment year for cases having income escapement of more 50 lakhs, and for search cases, the time limit reduced to 6 years from the current 10 years.
- Vivad se Vishwas Scheme 2024 is to be launched to settle pending income tax cases.
- Angel tax, i.e. taxation of issuance of shares by unlisted companies at more than its FMV u/s 56(2) (viib), is proposed to be abolished by the Finance Bill 2024.
- Buy-back of shares to be taxed in the hands of recipient shareholders.
- A comprehensive review of the Income Tax Act of 1961 to be completed in six months.
- A complete new Income Tax Law may be introduced.
- Non-reporting of small movable foreign assets up to ₹20 lakhs in income tax returns de-penalized under the Black Money Act.

Indirect Tax
- Customs duty on gold and silver to be reduced to 6%, platinum to 6.4%.
- Customs duty on Mobiles & Accessories to be reduced to 15%.
- Customs duty fully exempted on three additional cancer medicines.
- BCD reduced to 5% on certain broodstock, polychaete worms, shrimp & fish feed.
- 25 critical minerals exempted from custom duties & BCD on two of them reduced.
Nine Priorities for Viksit Bharat
In line with India’s vision to become a “Viksit Bharat” by 2047, the Union Budget 2024 outlines Nine key priorities aimed at fostering sustainable growth, inclusivity, and economic resilience. These priorities focus on various sectors that will play a pivotal role in transforming India into a developed nation. The priorities include:
- Productivity and Resilience in Agriculture
- Employment & Skilling
- Inclusive Human Resource Development and Social Justice
- Manufacturing & Services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research & Development
- Next Generation Reforms
1. Productivity and Resilience in Agriculture
Transforming Agriculture Research
- Atmanirbharta (Self-reliant) for Oilseeds
- National Cooperation Policy
- Vegetable production & supply chain
- Release of 109 new high yielding varieties
Natural Farming
- 1 crore farmers across the country will be initiated into natural farming, supported by certification and branding in next 2 years.
- 10,000 need-based bio-input resource centres to be established.
Shrimp Production & Export
- Financing for Shrimp farming, processing and export will be facilitated through NABARD.
Digital Public Infrastructure (DPI)
- DPI for coverage of farmers and their lands in 3 years.
- Digital crop survey in 400 districts.
- Issuance of Jan Samarth based Kisan Credit Cards.
2. Employment & Skilling
3 Schemes for Employment Linked Incentives
Scheme A
First Timers
- One-month wage to new entrants in all formal sectors in 3 instalments up to ₹15,000.
- Expected to benefit 210 lakh youth.
- Government will reimburse EPFO contributions of employers up to ₹3000 per month for 2 years for all new hires.
- Expected to generate 50 lakh jobs.
Scheme B
Job Creation in Manufacturing
- Linked to first time employees -Incentive to both employee & employer for EPFO contributions in the specified scales for the first 4 years.
- Expected to benefit 30 lakh youth.
- Loans up to ₹7.5 lakh with a guarantee from a government promoted Fund.
- Expected to help 25,000 students every year.
Scheme C
Support to Employers
- Government will reimburse EPFO contributions of employers up to ₹3000 per month for 2 years for all new hires.
- Expected to generate 50 lakh jobs Financial support for loans upto ₹10 lakh for higher education in domestic institutions.
- Direct E-vouchers to 1 lakh students every year.
- Annual interest subvention of 3%.
Internship Opportunities
- Scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years.
- Allowance of ₹5,000 per month along with one-time assistance of ₹6,000 through the CSR funds.
Skilling Programme
- 20 lakh youth will be skilled over a 5-year period.
- 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation.
- Course content & design aligned as per skill needs of industry.
3. Inclusive Human Resource Development and Social Justice
Purvodaya: Vikas bhi Virasat bhi
- Plan for endowment rich states in the Eastern parts covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh for generation of economic opportunities to attain Viksit Bharat.
- Amritsar Kolkata Industrial Corridor with development of an industrial node at Gaya.
Pradhan Mantri Janjatiya Unnat Gram Abhiyan:
- Improving the socio-economic condition of tribal communities covering 63,000 villages benefitting 5 crore tribal people.
- Allocation of more than ₹3 lakh crore for schemes benefitting women and girls.
- More than 100 branches of India Post Payment Bank will be set up in the Northeast Region.
Andhra Pradesh Reorganization Act:
- Financial support of ₹15,000 crores will be arranged in FY 24-25.
- Completion of Polavaram Irrigation Project ensuring food security of the nation.
- Essential infrastructure such as water, power, railways and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad Bengaluru Industrial Corridor.
4. Manufacturing & Services
- Credit Guarantee Scheme for MSMEs in the Manufacturing Sector.
- New assessment model for MSME credit.
- Enhanced scope for mandatory onboarding in TReDS.
- Mudra Loans: The limit enhanced to ₹ 20 lakh from the current ₹ 10 lakh under the ‘Tarun’ category.
- MSME Units for Food Irradiation, Quality & Safety Testing.
- Credit Support to MSMEs during Stress Period.
- Twelve industrial parks under the National Industrial Corridor Development Programme.
- Rental housing with dormitory type accommodation for industrial workers in PPP mode with VGF support.
- Critical Minerals Mission for domestic production, recycling and overseas acquisition.
- Strengthening of the tribunal and appellate tribunals to speed up insolvency resolution and additional tribunals to be established.
5. Urban Development
Stamp Duty
- Encouraging states to lower stamp duties for properties purchased by women.
Street Markets
- Envisioning a scheme to develop 100 weekly ‘haats’ or street food hubs in select cities.
Transit Oriented Development
- Transit Oriented Development plans for 14 large cities with a population above 30 lakh.
Water Management
- Promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects.
Housing Needs
PM Awas Yojana Urban 2.0
- Enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place.
6. Energy Security
PM Surya Ghar Muft Bijli Yojana
- 1 crore
Households obtain free electricity
- Up to 300
Units every month
- 1.28 crore
Registrations and 14 lakh applications so far.
Initiatives with private sector in Nuclear Energy
- Setting up Bharat Small Reactors.
- R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy.
Pumped Storage Policy
- For electricity storage and facilitation of smooth integration of the growing share of renewable energy.
Energy Audit
- Financial support for shifting of micro and small industries to cleaner forms of energy.
- Facilitate investment grade energy audit in 60 clusters, next phase expands to 100 clusters.
AUSC Thermal Power Plants
- A joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant.
7. Infrastructure
- Provision of ₹11,11,111 crore for infrastructure (3.4% of GDP).
- ₹1.5 lakh crore to states as long- term interest free loans to support resource allocation.
- Phase IV of PMGSY will be launched to provide all weather road connectivity to 25,000 rural habitations.
Irrigation and Flood Mitigation
- Financial support for projects with estimated cost of ₹11,500 crore such as the Kosi-Mechi intra-state link and 20 other ongoing and new schemes.
- Assistance for flood management and related projects in Assam, Sikkim & Uttarakhand.
- Assistance for reconstruction and rehabilitation in Himachal Pradesh.
Tourism
- Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor modelled on Kashi Vishwanath Temple Corridor.
- Comprehensive development initiative for Rajgir will be undertaken which holds religious significance for Hindus, Buddhists and Jains.
- The development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature.
- Assistance to development of Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches making it an ultimate tourism destination.
8. Innovation, Research & Development
- Operationalization of the Anusandhan National Research Fund for basic research and prototype development.
- Space Economy: A venture capital fund of ₹1,000 crore is to be set up Private sector-driven research and innovation at commercial scale with a financing pool of ₹1 lakh crore Trust.
9. Next Generation Reforms
- Taxonomy for climate finance: Enhancing the availability of capital for climate adaptation and mitigation related investments.
- FDI and Overseas Investments: Simplified to facilitate FDIs and promote opportunities for using Indian Rupee as a currency for overseas investments.
- NPS Vatsalya: A plan for contribution by parents and guardians for minors.
- Improvement of data governance, collection, processing and management of data and statistics.
- New Pension Scheme (NPS): A solution that address the relevant issues, protects the common citizen and maintains fiscal prudence will be formed.
Rural & Urban land related
- Unique Land Parcel Identification Number or Bhu-Aadhaar for all lands.
- Survey of map sub-divisions as per current ownership.
- Linkages to the farmers’ registries.
- Land records in urban areas will be digitized with GIS mapping.
- Digitization of cadastral maps.
- Establishment of land registry.
In conclusion, the Union Budget 2024 sets the foundation for India’s vision of becoming a “Viksit Bharat” by 2047. With a focus on inclusive growth, sustainable development, and empowerment of key sectors, it aims to strengthen infrastructure, promote innovation, and improve the welfare of all communities. These strategic priorities will play a vital role in shaping India’s economic future.
Union Budget: Estimates, Inflows and Outflows
The Union Budget estimates provide a comprehensive overview of the government’s financial plan, outlining the anticipated inflows and outflows for the upcoming fiscal year. These estimates are crucial in understanding the allocation of resources to various sectors, as well as the government’s strategies for fiscal management.


