Union Budget 2024 Highlights: Key Updates from Budget 2024

Every year, the Union Budget is presented by India’s Finance Minister to lay out the government’s financial plans. This budget is a significant document as it tells about the government’s economic priorities and strategies. For the year 2024-25, Finance Minister Nirmala Sitharaman introduced several changes in taxation, income tax slabs, and more.

Here are the major budget 2024 highlights you should be aware of so you can manage your finances accordingly.

The Theme of Union Budget 2024

Every year, the Union Budget has a theme. The theme of Union Budget 2024 was ‘EMPLOYMENT,’ which highlights the government’s commitment to creating jobs and enhancing skills. Each letter in ‘EMPLOYMENT’ represents a key area of focus:

• Employment
• MSMEs
• Productivity
• Land
• Opportunity
• Youth
• Middle Class
• Energy Security
• New Generation Reforms
• Technology

Economic Targets of Union Budget 2024

• Expecting a continued GDP growth
• Plans to reduce the fiscal deficit to 4.5% from 4.9%
• Enhance social security by increasing deductions and benefits
• Creating new schemes and jobs to promote employment

Budget 2024 Updates – Revenue and Expenditure Plans

For 2024-25, the government plans to spend ₹48,20,512 crore, which is an 8.5% increase from the previous year. The budget also reveals that ₹37,000 crore in revenue will be forgone due to tax changes with an additional ₹30,000 crore expected to be raised.

Budget 2024 Key Highlights

The major Budget 2024 highlights include:

• Income Tax Changes: New tax slabs introduced and an increase in the standard deduction.
• Social Security: Improvements to the National Pension Scheme (NPS) deductions.
• Taxation Changes: Updates in tax slabs and an increase in capital gains tax.
• Social Security and Employment Benefits: Higher NPS contributions and new benefits for employees and pensioners.

Changes In Taxation

• New Tax Slab

As per the Union Budget 2024, the revised tax slabs are:

Income Slab	Income Tax
Up to ₹3 lakh	0%
₹3 lakh to ₹7 lakh	5%
₹7 lakh to ₹10 lakh	10%
₹10 lakh to ₹12 lakh	15%
₹12 lakh to ₹15 lakh	20%
Above ₹15 lakh	30%

Note: Now with this new tax regime in place, salaried employees can save up to ₹17,500/- in income tax.

• Income Tax Standard Deduction

The income tax standard deduction has been increased from ₹50,000 to ₹75,000 and this way, employees would be able to reduce their taxable income. Eventually, it would result in greater tax savings.

Impact On Social Security and Employment Benefits

• Increased NPS Deductions: Employers’ contributions to the National Pension Scheme have been raised from 10% to 14% of an employee’s salary.
• One-Month Wage for New Entrants: New employees in the formal sector will receive a one-month wage, up to ₹15,000, as part of their provident fund contribution.
• Reimburse EPFO Contributions: The government will reimburse EPFO contributions of employers up to ₹3000 per month for 2 years for all new hires.
• Family Pension Deduction: Increased from ₹15,000 to ₹25,000 to extend support for pensioners.

Union Budget 2024 Updates- What Has Become Cheaper?

Items which have become cheaper include:

• Mobile phones and accessories – Basic Customs Duty (BCD) on mobile phones and chargers has been reduced to 15% from 20%.
• Gold, Silver – Import duties reduced to 6% from 15%.
• Platinum – Import duty reduced to 6.4% from 15.4%.
• Leather Footwear – Customs duty reduced on materials used to manufacture footwear from 10% to 0%.
• Solar Panels – Exemption from Basic Customs Duty
• Cancer Medicines – Three cancer medicines (Trastuzumab Deruxtecan, Osimertinib, and Durvalumab) are exempted from Basic Customs Duty.
• Seafood – Basic Customs Duty on certain brood stocks, shrimps, and fish feed reduced to 5%
• Steel and Copper – Removal of Basic Customs Duty

Union Budget 2024 Updates- What Has Become Expensive?
Items which have become expensive include:

• Plastic Products – BCD on non-biodegradable plastics increased from 10% to 25%.
• Telecom goods – 5% increase in import duty from 10% to 15% on motherboards.
• Ammonium Nitrate – BCD increased from 7.5% to 10%.

Capital Gains Updates

• Short Term Capital Gains Tax: Short-term gains from financial assets will be taxed at a rate of 20%.
• Long Term Capital Gains Tax: Long-term gains tax on both financial and non-financial assets is hiked to 12.5% from 10%.
• Exemption Limit: The exemption limit for long term capital gains on financial assets has been increased to ₹1.25 lakh from 1 lakh per year.

With this, investors can certainly expect higher taxes, however, they can benefit from a higher exemption limit.

Gold Prices and Taxes Updates

The import duties on gold and silver have been reduced to 6%, which was previously 15%. On account of this, the taxes on gold will reduce to 9% from 18.5%. Investors can benefits from this impact on gold prices and invest in physical or digital gold.

Conclusion

So, these were the Budget 2024 key highlights!

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