Budget 2024 Key Highlights: Capital Gains, Income Tax Changes, and Employment Opportunities You Need to Know

Key Budget Highlights:

1. Capital Expenditure (Capex): For FY25, the government has allocated ₹11.11 lakh crore for capital expenditure, up from last year’s revised estimate of ₹9.5 lakh crore. This represents 3.4% of India’s GDP.
2. Income Tax: The new tax regime will see an increase in the standard deduction to ₹75,000 from ₹50,000. Tax rates in the new regime will be adjusted as follows:
   • 0-3 lakh: 0%
   • 3-7 lakh: 5%
   • 7-10 lakh: 10%
   • 10-12 lakh: 15%
   • 12-15 lakh: 20%
   • Above 15 lakh: 30% Salaried individuals could save up to ₹17,500 in income tax.
3. Capital Gains Tax: Long-term capital gains tax will increase from 10% to 12.5%, while short-term capital gains tax will rise from 15% to 20%. The exemption limit for capital gains is set at ₹1.25 lakh per year.
4. Securities Transaction Tax (STT): The STT rate will double from 0.01% to 0.02%, impacting equity and index traders.
5. Angel Tax: The government will abolish the angel tax.
6. Customs Duty:
   • Basic Customs Duty (BCD) on mobile phones and related components will be reduced to 15%.
   • Customs duties on gold and silver will decrease to 6%, and on platinum to 6.4%.
   • BCD on printed circuit board assemblies for certain telecom equipment will rise to 15%.
   • Customs duties on 25 critical minerals will be exempted or reduced.
7. Employment and Skilling:
   • A new PM Package with five schemes worth ₹2 lakh crore aims to boost employment and skilling, including ₹1.48 lakh crore for education and skilling.
   • Incentives for job creation include up to ₹15,000 in direct benefit transfers for new hires and up to ₹3,000 reimbursement per new employee for employers.
   • A scheme will provide internships for one crore youths over five years and facilitate rental housing for industrial workers.
8. Women Empowerment: Over ₹3 lakh crore will be allocated to initiatives benefiting women and girls, including hostels and skilling programs.
9. Agriculture and Rural Development:
   • ₹1.52 lakh crore will be allocated to agriculture and allied sectors.
   • ₹2.66 lakh crore will be directed towards rural development.
   • An initiative to introduce one crore farmers to natural farming over two years.
10. Assistance for Bihar and Andhra Pradesh:
    • Bihar will receive support for new infrastructure and ₹26,000 crore for highways.
    • Andhra Pradesh will get ₹15,000 crore for the Pollavaram irrigation project and other capital investments.
11. MSME and Manufacturing: A new scheme will provide collateral-free term loans for MSMEs, and a ₹100 crore guarantee fund will support credit guarantees. SIDBI will open 24 new branches for MSME clusters.
12. Financial Initiatives:
    • Mudra loan limits will increase to ₹20 lakh for repeat borrowers.
    • Higher education loans up to ₹10 lakh will be supported with e-vouchers and 3% interest subvention.
    • The Insolvency and Bankruptcy Code (IBC) will have an integrated tech platform for better outcomes.
    • FDI rules will be simplified.
13. Infrastructure and Development:
    • An additional ₹26,000 crore will be allocated for road connectivity projects.
    • A Critical Mineral Mission will be established for recycling and overseas acquisitions.
    • ₹10 lakh crore will be invested in affordable housing and rooftop solar panels for 1 crore households.
14. Nuclear and Space: The government will collaborate with the private sector on small modular reactors and expand the space economy with a ₹1,000 crore venture capital fund.
15. Budget Estimates for FY25:
    • Fiscal deficit is projected at 4.9% of GDP, down from 5.1% in the interim Budget.
    • The aim is to reduce the fiscal deficit to below 4.5% by FY26.
    • Market borrowing will decrease to ₹14.01 lakh crore.
    • Receipts for FY25 are estimated at ₹32.07 lakh crore, with expenditure at ₹48.21 lakh crore.

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