The Union Budget 2024–25 will be introduced in the Lok Sabha by Finance Minister Nirmala Sitharaman Today, July 23. She will only be the second finance minister to accomplish this feat after C D Deshmukh with this, her seventh consecutive budget. This budget, which will be the first of the Modi 3.0 government, is anticipated to maintain fiscal prudence while supporting initiatives in a number of economic sectors that align with the Viksit Bharat 2047 Vision.
Sitharaman's Budget Speech is scheduled to begin at 11:00 am. Before the budget, the National Democratic Alliance (NDA) held a crucial meeting on Monday, during which sources said they discussed floor management and a plan to refute the opposition's narrative. It is requested of all MPs to be in the House. According to sources added, common points will be distributed to all allies following the budget presentation to make sure everyone is in agreement.
On the income tax front, Sitharaman is anticipated to make announcements about increases to the standard and exemption thresholds.
Single Hybrid Tax System: Since new taxpayers are already subject to the new tax system, the government may transition to a "Single Hybrid Tax System." It is anticipated that under the new regime, the exemption slab will increase from the current ₹3 lakh to at least ₹4 lakh.
Incentives for Old Regime Taxpayers: Established taxpayers who earn more than ₹15 lakh continue to favour the old regime. It is anticipated that the government will provide incentives for them to transition to the new system, potentially by creating a new tax slab with a 25% tax rate for incomes between ₹15 lakh and ₹18 lakh.
Standard Deduction: It is anticipated that the finance minister will also raise the 1 lakh standard deduction for taxpayers who are salaried.
Interest Deduction on Housing Loans: One of the main demands is to increase the maximum interest deduction amount under Section 24B from ₹2 lakh to ₹5 lakh for housing loans.
Holding Period for Capital Gains: The government is anticipated to lower the long-term capital gains tax rate, which is currently 20%, and shorten the holding period for capital gains on real estate, which is currently 24 months.
Affordable Housing Criteria: In order to make affordable housing more inclusive, the industry is pushing for an increase in the price, size, and income requirements. At the moment, the cost of the property (Rs 45 lakh), the carpet area (60 to 90 sq. m), and the homebuyer's income (EWS / LIG) are the determining factors for affordable housing.
The government has concentrated on encouraging the growth of industries, particularly startups and MSMEs, and increasing the adoption of clean technologies.
On Monday, Sitharaman presented the Economic Survey 2023–24, laying the groundwork for the Union Budget 2024–25. It projected 6.5%–7% economic growth in India for the current fiscal year 2024–2025, with 4.5% inflation. With an emphasis on job creation and skill development, the survey maintained its optimistic outlook for the nation's growth prospects.
