India Budget 2024 : Important Updates,Key Takeaways, Important Points
Finance Minister Nirmala Sitharaman’s Budget 2024 saw her announcing several key projects.
Finance Minister Nirmala Sitharaman : Final Budget on 23rd July 2024, In Budget 2024, she announced several major projects agriculture, manufacturing and services sector and major changes in the capital gains tax regime and income tax regimes.
In the interim budget, Finance Minister Nirmala Sitharaman promised to present a detailed roadmap for the goal of ‘Developed India’.
Some key areas of focus for the government:
- Productivity and Resilience in Agriculture
- Employment and Skilling
- Inclusive Human Resource Development and Social Justice
- Manufacturing and Services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research and Development
- Next Generation Reforms
- There were also many reforms under Direct taxes and Indirect taxes in the Budget.
Finance Minister Nirmala Sitharaman also made important announcements for Bihar and Andhra Pradesh, including increased investment in infrastructure and special financial assistance.
Budget 2024 announced several measures on education and job creation.
Direct Tax Proposals
Standard Deduction and Family Pension Deduction Under New Regime
- She announced a comprehensive review of the Income Tax Act to improve its clarity and readability. Sitharaman also announced changes in the new tax regime slabs and raising the standard tax deduction from Rs 50,000 to Rs 75,000.
- The deduction on family pension for individuals having pension income has been increased from Rs 15,000 to Rs 25,000 if they file taxes under the new regime.
Changes in TDS Rates
Budget 2024 has reduced TDS rates on specified payments to ease business and improve taxpayer compliance. However, the TDS rates will be effective only after October 1, 2024 or April 1, 2025. Below shows the specified payments.
TDS Sections Section 194D – Payment of insurance commission in case of other than company.
Current TDS Rate 5%
Proposed TDS Rate 2%
Effective from 1st April 2025
TDS Sections Section 194DA – Payment in respect of life insurance policy
Current TDS Rate 5%
Proposed TDS Rate 2%
Effective from 1st Oct 2024
TDS Sections Section 194H – Payment of commission or brokerage
Current TDS Rate 5%
Proposed TDS Rate 2%
Effective from 1st Oct 2024
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