Budget 2024: Relief for New Regime Taxpayers, Massive Boost to Jobs

The 2024 Budget, presented by Finance Minister Nirmala Sitharaman, brings significant relief to new regime taxpayers and introduces substantial measures to boost job creation. This comprehensive budget aims to address various sectors, including personal taxation, job creation, education, startups, and regional development. In this detailed analysis, we will delve into each aspect of the Budget 2024, highlighting the key announcements and their implications.

Personal Taxation

Personal Tax Relief

In a major relief to the middle class, the Finance Minister announced changes to the new tax regime, increasing the standard deduction from Rs 50,000 to Rs 75,000. The revised income tax slabs are as follows:

Up to Rs 3 lakh: No tax
Rs 3 lakh to Rs 7 lakh: 5% tax
Rs 7 lakh to Rs 10 lakh: 10% tax
Rs 10 lakh to Rs 12 lakh: 15% tax
Rs 12 lakh to Rs 15 lakh: 20% tax
Above Rs 15 lakh: 30% tax

These changes aim to provide substantial relief to taxpayers, encouraging more individuals to opt for the new tax regime.

Job Creation and Employment

Massive Allocation for Job Creation

Sitharaman announced an allocation of Rs 2 lakh crore for job creation over the next five years. The government introduced three employment-linked schemes:

Direct Benefit Transfer: First-time employees registered in EPFO will receive one month’s salary in three instalments up to Rs 15,000.
Manufacturing Sector Incentives: Additional employment in the manufacturing sector will be incentivized.
Employer Reimbursement: Employers will receive reimbursement up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee.

These schemes are designed to stimulate job creation and provide financial support to both employees and employers.

Education and Skilling

Focus on Education

The Budget 2024 has allocated Rs 1.48 lakh crore for education, employment, and skilling. Key announcements include:

Loans up to Rs 10 lakh for higher education in domestic institutions.
Internship opportunities in 500 top companies for 1 crore youth over five years.

These initiatives aim to enhance the skill set of the youth and provide better educational opportunities.

Boost to Startups

Abolition of Angel Tax

To boost investment and the startup ecosystem, the government has abolished the angel tax. This tax was levied on funds raised by startups if they exceeded the fair market value of the company. The abolition of this tax is expected to encourage more investments in startups, fostering innovation and growth in the sector.

Regional Development

Special Measures for Andhra Pradesh and Bihar

The government announced a series of measures for the development of Andhra Pradesh and Bihar:

Rs 15,000 crore for the development of Amravati as Andhra Pradesh’s capital.
Rs 26,000 crore for various road projects in Bihar.

These measures aim to boost infrastructure and development in these states, promoting balanced regional growth.

Price Reductions

What’s Cheaper

Several goods are expected to become cheaper due to reductions in customs duties:

Mobile phones and parts: Customs duty reduced to 15%.
Cancer medicines: Customs duties exempted.
Imported gold, silver, leather goods, and seafood will also see a price reduction.

These changes are aimed at making essential goods more affordable for the common man.

Tourism Sector

Development Initiatives

In the tourism sector, the Finance Minister announced:

Vishnupath temple at Gaya and Mahabodhi temple in Bodhgaya to be modelled on the Kashi Vishwanath corridor.
Nalanda to be developed as a tourist hotspot.
Support for the development of Odisha’s temples and beaches.

These initiatives aim to promote tourism and boost the local economy.

Urban Housing

PM Awas Yojana Urban 2.0

The PM Awas Yojana Urban 2.0 aims to address the housing needs of 1 crore urban poor and middle-class families with an investment of Rs 10 lakh crore, including central assistance of Rs 2.2 lakh crores over the next five years.

Women Empowerment

Women-Specific Programs

The government has announced several women-specific skilling programs. Working women hostels will be set up to promote higher participation of women in the workforce. Additionally, hostels and crèches will be established to support working mothers.

Capital Expenditure

Significant Allocation

The government will provide Rs 11.11 lakh crore for capital expenditure for 2024-25, which is 3.4 percent of the GDP. The ‘Poorvodaya’ scheme aims for the all-round development of the Eastern region, covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

Agricultural Sector

Support for Farmers

The Budget includes a provision of Rs 1.52 lakh crore for the agriculture sector. Over the next two years, 1 crore farmers will be initiated into natural farming practices, promoting sustainable agriculture.

The Budget 2024, presented by Finance Minister Nirmala Sitharaman, focuses on personal tax relief, job creation, education, startups, regional development, and various other sectors. With significant allocations and innovative schemes, this budget aims to promote economic growth, create employment opportunities, and enhance the overall quality of life for citizens. The abolition of angel tax and measures to boost the startup ecosystem are expected to foster innovation and attract more investments. Overall, the Budget 2024 lays a strong foundation for a prosperous and inclusive future.