Key point and highlights of 3.0 budget

On 23/7/2024 FM presented the union budget for the FY23-24.Here are the key points to takeover and highlights’ of the budget.

Finance Minister Nirmala Sitharaman highlights key priority areas of the

1. Productivity & Resilience In Agriculture.

2. Employment And Skilling.

3. Inclusiveness & Social justice.

4. Manufacturing & Services.

5. Urban Development.

6. Energy Security.

7. Infrastructure.

8. Innovation, R&D.

9. Next Generation Reforms.
Read more to understand the key points.

Taxation Updates(- impact the stock market)
• Limit of exemption at capital gains proposed at Rs 1.25 lakh a year
• STT on F&O hiked to 0.02% and 0.1%
• Corporate tax rate on foreign companies reduced to 25%
• Limit of LTCG hiked from 10% to 12.5%
• Short term gains on certain financial assets will be 20 percent, rest is applicable tax rate
• Long term capital gains will be 12.5 percent
• Listed financial assets held for more than a year will be classified as long term
• TDS rate on e-commerce operators to be reduced to 0.1 percent from 1 percent
• Tax rate of 20 per cent on certain assets. Rest to attract applicable rates
• Listed financial assets held for more than a year will be classified as long term
• Unlisted bonds and debentures, irrespective of holding period, to attract CGT as pwer applicable rates

Impact on Direct tax payers

Abolishment of Angel Tax announced for all classes of investors
• Professionals in MNCs who get ESOPS and then invest in movable assets abroad of up to Rs 20 lakh decriminalized / non-penalized
• Under new tax regime, standard deduction hiked to Rs 75,000 from Rs 50,000
• Deduction on family pension for pensioners to be enhanced to 25K Rs
• Salaried employee will save Rs 17,500 in income tax
New tax regime Tax rate structure to be revised as follows:
• 0-3L — 0%
• 3-7 L — 5%
• 7-10 L — 10 %
• 10 – 12 L — 15 %
• 12 – 15 L — 20%
• over 15 L — 30%

IMPACT ON PARTICULAR SECTOR-

POSITIVE FOR SOLAR PANEL ASSEMBLERS Solar energy: Expand the list of exempted capital goods used in mfg. of solar cells, panels.

ADDITIONAL 30M HOUSES FOR AFFORDABLE HOUSING SCHEME.
Additional 30m Houses For Affordable Housing Scheme.
Grants For Backward Regions Of AP TO Be Provided As Per AP Reorganization Act Concerted Efforts Made To Fulfill Commitments Under AP Reorganization Act
To Announce Credit Guarantee Scheme For MSME In Mfg. Sector and
To Bring MSME Credit Guarantee Scheme For Collateral-Free Loan.
PSU Bank will built Their Own in house capability To Access MSME for Credit Instead of relying on external assessment.
Rs 2.66t To Be Provided For Rural Development.
Enhanced Mudra Loan Limit To 20 Lakhs From 10 lakh(for TARUN category).
Credit Support To Small And Medium Businesses During Stress Period.

Development of infrastructure.

SIDBI Branches In MSME Clusters To Be Expanded In Next 3 Yrs To Provide Direct Credit E-Commerce Hubs Will Help Facilitate Trade & Export Related Services Under One Roof.
Internship Allowance Of ₹5,000/Month & 1-time Assistance Of ₹6,000 To Be Given.
TO ALLOCATE 10TRLN RUPEES FOR URBAN HOUSING.
Free electricity program via solar panels was announced for 100,000 households.PM Surya Ghar Free Electricity Scheme for 1 Cr House.
Govt to partner with private sector for Bharat Small Reactors for harnessing nuclear energy.
This year , 11.11 Lakhs Cr For capex , That’s 3.4 % Of GDP
India Plans 800mw Ultra Super Critical Thermal Power Plant.