Income Tax Budget 2024 LIVE: New Tax Slabs, Increased Standard Deduction, Will Taxpayers Shift To New Tax Regime?
BUDGET glossary
A revenue budget consists of the government’s revenue receipts and the expenditure they cover through these receipts. Revenue receipts include money collected through various taxes, interest on loans and dividend on investment like PSUs etc. Revenue expenditure is the money spent on the day to day functioning of the government. The money that is earned through revenue receipts is spent on revenue expenditure.
The Union Budget is a document which provides an estimation of the revenue and expenses of a country during the financial year. It draws up a financial plan for the country and decides and allocates a specific sum for various government schemes and departments. The interim budget 2024 will be announced on February 01 by finance minister, Nirmala Sitharaman
It includes the estimate of government spending on different sectors throughout the year. It also includes expected revenue from tax receipts together with the estimated fiscal deficit and revenue deficit for the year.
A surcharge is an additional fee, charge, or tax that is added to the cost of a good or service beyond the marked price. It is generally charged to the richest so that there is equity in the society. The richer have to pay surcharges while the welfare policies are made for the poor with the rich contributing to these policies. Currently, people earning between Rs 50 lakh and Rs 1 crore in India have to pay a surcharge of 10%, while those earning above Rs 1 crore have to pay a surcharge of 15%.
Disinvestment is the process by which the Union government either sells its stakes in a PSU–fully or partially–or lists it on the stock market. The concept of disinvestment follows the dictum: The government has no business to be in business. Thus, the government continues to disinvest in sectors where private companies are already the dominant players.
Excess grant is the extra budget allocated to meet the additional expenditure demands of the government. When the allocated budget falls short of meeting the expenditure demands of the government, an estimate for additional budget is presented before the Parliament. At the end of each financial year, excess grants are passed by the Parliament.
Excise duty refers to the taxes levied on the manufacture of goods within the country, as opposed to custom duty that is levied on goods coming from outside the country. In July 2017 the Centre introduced GST that subsumed a number of indirect taxes including excise duty. This means excise duty, technically, does not exist in India except on a few items such as liquor and petroleum.
The Finance Bill is introduced in the Lok Sabha, after the presentation of the annual budget, to implement the financial proposals for the following financial year. Finance Bills can be divided into three categories: Finance Bill Category I, Finance Bill category II and a Money Bill.
The Annual Financial Statement is a document presented by the government every year in the Parliament showing the estimated receipts and expenditures for the upcoming financial year in relation with the estimates from the previous financial years. Under article 112 of the Constitution, the government has to present an annual financial statement for every fiscal year.
Cess is an additional tax levied for a specific purposes. The cess is kept in the Consolidated Fund of India and the amount raised by the tax is kept by the central government. Some of the cess types in the country include Education Cess, Secondary and higher Education Cess, Krishi Kalyan Cess, Swacch Bharat Cess.
A revenue budget consists of the government’s revenue receipts and the expenditure they cover through these receipts. Revenue receipts include money collected through various taxes, interest on loans and dividend on investment like PSUs etc. Revenue expenditure is the money spent on the day to day functioning of the government. The money that is earned through revenue receipts is spent on revenue expenditure.
The Union Budget is a document which provides an estimation of the revenue and expenses of a country during the financial year. It draws up a financial plan for the country and decides and allocates a specific sum for various government schemes and departments. The interim budget 2024 will be announced on February 01 by finance minister, Nirmala Sitharaman
It includes the estimate of government spending on different sectors throughout the year. It also includes expected revenue from tax receipts together with the estimated fiscal deficit and revenue deficit for the year.
A surcharge is an additional fee, charge, or tax that is added to the cost of a good or service beyond the marked price. It is generally charged to the richest so that there is equity in the society. The richer have to pay surcharges while the welfare policies are made for the poor with the rich contributing to these policies. Currently, people earning between Rs 50 lakh and Rs 1 crore in India have to pay a surcharge of 10%, while those earning above Rs 1 crore have to pay a surcharge of 15%.
Disinvestment is the process by which the Union government either sells its stakes in a PSU–fully or partially–or lists it on the stock market. The concept of disinvestment follows the dictum: The government has no business to be in business. Thus, the government continues to disinvest in sectors where private companies are already the dominant players.
Excess grant is the extra budget allocated to meet the additional expenditure demands of the government. When the allocated budget falls short of meeting the expenditure demands of the government, an estimate for additional budget is presented before the Parliament. At the end of each financial year, excess grants are passed by the Parliament.
Excise duty refers to the taxes levied on the manufacture of goods within the country, as opposed to custom duty that is levied on goods coming from outside the country. In July 2017 the Centre introduced GST that subsumed a number of indirect taxes including excise duty. This means excise duty, technically, does not exist in India except on a few items such as liquor and petroleum.
The Finance Bill is introduced in the Lok Sabha, after the presentation of the annual budget, to implement the financial proposals for the following financial year. Finance Bills can be divided into three categories: Finance Bill Category I, Finance Bill category II and a Money Bill.
The Annual Financial Statement is a document presented by the government every year in the Parliament showing the estimated receipts and expenditures for the upcoming financial year in relation with the estimates from the previous financial years. Under article 112 of the Constitution, the government has to present an annual financial statement for every fiscal year.
Cess is an additional tax levied for a specific purposes. The cess is kept in the Consolidated Fund of India and the amount raised by the tax is kept by the central government. Some of the cess types in the country include Education Cess, Secondary and higher Education Cess, Krishi Kalyan Cess, Swacch Bharat Cess.
A revenue budget consists of the government’s revenue receipts and the expenditure they cover through these receipts. Revenue receipts include money collected through various taxes, interest on loans and dividend on investment like PSUs etc. Revenue expenditure is the money spent on the day to day functioning of the government. The money that is earned through revenue receipts is spent on revenue expenditure.
(Interim Budget) The Interim Budget 2019-20 presented in Parliament on 1 February 2019 had a major scheme for farmers and provided for income tax sops. The then Finance Minister Piyush Goyal said the government brought down average inflation to 4.6%, lower than the tenure of any other previous government.
Finance minister Nirmala Sitharaman hiked tax on petrol and diesel, raised import duty on gold, levied additional surcharge on super rich and brought a tax on high value cash withdrawals as she sought to spur growth with reduction in corporate tax and sops to housing sector, startups and electric vehicles.
To revive the Indian economy amid the coronavirus pandemic, finance minister Nirmala Sitharaman focussed on six pillars in Union Budget 2021 — health and wellbeing, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, and minimum government maximum governance. Several direct tax reforms such as income tax relaxation for senior citizens of 75 years age and above, national faceless income tax appellate tribunal centre, pre-filing returns, advance tax on dividend income were proposed among others.
The Budget 2022, which came after two years of the coronavirus pandemic, focussed more on the infrastructure development in the country and the domestic defence sector, to offer a progressive blueprint of the Indian economy in the long run. Apart from this, capital expenditure also got a boost to support the pandemic-hit economy. Finance Minister Nirmala Sitharaman proposed no change in personal income tax rates or slabs in the Budget 2022.
Union Budget 2023, which was the last full Budget of the current Modi government before the general elections of 2024, provided major relief to the middle class, especially the salaried class, by expanding income tax relaxations. It raised income tax rebate to Rs 7 lakh for the new tax regime, against Rs 5 lakh earlier. It also allowed a standard deduction of Rs 50,000 for the new tax regime. Apart from this, in the Budget 2023, capex also got a boost.
The Budget aimed at near full employment in a span of ten years. The ’92 Budget called for reduction in fiscal deficits. The government aimed at increasing tax and non-tax revenues. The finance minister also hiked the defence budget from Rs 16,350 crores to Rs 17,500 — a steep rise of 7%.
The Budget extensively discussed agricultural credit with an aim to promote rural development. "Our strategy will gradually reduce high levels of protection to the Indian industry. It will moderate the high industrial prices which the farmer has to pay," said the finance minister in his Budget speech.
The Budget revolved around 100 percent coverage of provisions for safe drinking water, 100 percent coverage of primary health centers, universalisation of primary education, public housing assistance to all shelter-less poor families, extension of mid-day meal schemes, road connectivity to all villages and habitations and streamlining the Public Distribution System meant for families below the poverty line.
Intensification of infrastructure investment, continued reforms in the financial sector and capital markets, deepening of structural reforms were some of the key aspects. Reduction in non-productive expenditure and rationalisation of subsidies was undertaken. The government also aimed at acceleration of the privatisation process and restructuring of public enterprises along with widening of the tax base.
The government introduced a new health insurance scheme in which an individual could get insurance with a premium of only Re 1/day for 365 days. A family of five could get insured for Rs 1.50/day and Rs 2/day for a family of seven, including dependants and could be eligible for a benefit of Rs 30,000 in case of hospitalisation. In the event of death, the family would get Rs 25,000.
Amid rising concerns over poverty in India, 2 crore families below the poverty line were planned to be covered under subsidised PDS. Long term capital gains tax was abolished and short term capital gains tax reduced to 10%. The government also allocated Rs 259 crore on AIDS control programmes.
Direct taxation was the major highlight of this Budget. Income up to Rs 1,00,000 per annum was exempted from tax. Income between Rs 1-1.5 lakh was taxed at 10%, Rs 1.5-2.5 lakh income at 20% and income above Rs 2.5 lakh was taxed at 30%. The government also proposed 50 paise per litre cess on petrol and diesel to fund highways.
Monetary allocation for the social sector was raised by 17 percent to Rs 1,60,887 crore along with allocation for Bharat Nirman programme increased by Rs 10,000 crore. Plan allocation for education was hiked by 24 percent and health by 20 percent. Eligibility for old age pension scheme was reduced from 65 years to 60 years.
Pranab Mukherjee increased and facilitated poor people’s access to credit. The aimed monetary target for agricultural credit was raised from Rs 1,00,000 crore to Rs 5,75,000 crore. The Budget brought about private sector reforms through various fiscal initiatives like amending the Fiscal Responsibility and Budget Management Act of 2003 (FRBM Act).
Rs 1,000 crore was allocated for skill development of the youth. Food subsidies found an allocation of Rs 10,000 in anticipation of the passing of National Food Security Bill. The 2013 Budget announced a "Nirbhaya" fund of Rs 1,000 crore in memory of the December 16, 2012 gang rape-and-murder victim.
While several announcements were made pertaining to the health sector, most of them were focussed on medical education and establishment of institutions. The finance minister also looked at big solar power projects. The 2014 Budget planned to set up an integrated Ganga conservation mission, the Namami Gange project and allocated Rs 2,037 crore for it.
This was the first full-fledged Budget by the National Democratic Alliance government. However, the social sector was left wanting. Experts pointed out that the Union Budget 2015-16 fell short of making investments for transmission infrastructure. This was not in line with the government’s intention of producing 175 GW renewable energy by 2020.
With demonetisation hitting the country three months prior to the Budget, Jaitley’s 2017 Budget was being watched by the country very closely. Additionally, 2017 also witnessed the merger of the Railway Budget with the General Budget. Income Tax rate was cut to 5 percent for individuals with an income between Rs 2.5 lakh to Rs 5 lakh.
Budget 2018 was a step towards India's road to a high growth of over 8% with manufacturing, services and exports back on good growth path. Then Finance Minister, Arun Jaitley while presenting the General Budget 2018-19 in Parliament said that Indian society, polity and economy had shown remarkable resilience in adjusting with the structural reforms like GST and demonetisation. The Budget also worked towards doubling of farmer's income by 2022.
(Interim Budget) The Interim Budget 2019-20 presented in Parliament on 1 February 2019 had a major scheme for farmers and provided for income tax sops. The then Finance Minister Piyush Goyal said the government brought down average inflation to 4.6%, lower than the tenure of any other previous government.
Finance minister Nirmala Sitharaman hiked tax on petrol and diesel, raised import duty on gold, levied additional surcharge on super rich and brought a tax on high value cash withdrawals as she sought to spur growth with reduction in corporate tax and sops to housing sector, startups and electric vehicles.
To revive the Indian economy amid the coronavirus pandemic, finance minister Nirmala Sitharaman focussed on six pillars in Union Budget 2021 — health and wellbeing, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, and minimum government maximum governance. Several direct tax reforms such as income tax relaxation for senior citizens of 75 years age and above, national faceless income tax appellate tribunal centre, pre-filing returns, advance tax on dividend income were proposed among others.
The Budget 2022, which came after two years of the coronavirus pandemic, focussed more on the infrastructure development in the country and the domestic defence sector, to offer a progressive blueprint of the Indian economy in the long run. Apart from this, capital expenditure also got a boost to support the pandemic-hit economy. Finance Minister Nirmala Sitharaman proposed no change in personal income tax rates or slabs in the Budget 2022.
Union Budget 2023, which was the last full Budget of the current Modi government before the general elections of 2024, provided major relief to the middle class, especially the salaried class, by expanding income tax relaxations. It raised income tax rebate to Rs 7 lakh for the new tax regime, against Rs 5 lakh earlier. It also allowed a standard deduction of Rs 50,000 for the new tax regime. Apart from this, in the Budget 2023, capex also got a boost.
The Budget aimed at near full employment in a span of ten years. The ’92 Budget called for reduction in fiscal deficits. The government aimed at increasing tax and non-tax revenues. The finance minister also hiked the defence budget from Rs 16,350 crores to Rs 17,500 — a steep rise of 7%.
The Budget extensively discussed agricultural credit with an aim to promote rural development. "Our strategy will gradually reduce high levels of protection to the Indian industry. It will moderate the high industrial prices which the farmer has to pay," said the finance minister in his Budget speech.
The Budget revolved around 100 percent coverage of provisions for safe drinking water, 100 percent coverage of primary health centers, universalisation of primary education, public housing assistance to all shelter-less poor families, extension of mid-day meal schemes, road connectivity to all villages and habitations and streamlining the Public Distribution System meant for families below the poverty line.
Intensification of infrastructure investment, continued reforms in the financial sector and capital markets, deepening of structural reforms were some of the key aspects. Reduction in non-productive expenditure and rationalisation of subsidies was undertaken. The government also aimed at acceleration of the privatisation process and restructuring of public enterprises along with widening of the tax base.
The government introduced a new health insurance scheme in which an individual could get insurance with a premium of only Re 1/day for 365 days. A family of five could get insured for Rs 1.50/day and Rs 2/day for a family of seven, including dependants and could be eligible for a benefit of Rs 30,000 in case of hospitalisation. In the event of death, the family would get Rs 25,000.
Amid rising concerns over poverty in India, 2 crore families below the poverty line were planned to be covered under subsidised PDS. Long term capital gains tax was abolished and short term capital gains tax reduced to 10%. The government also allocated Rs 259 crore on AIDS control programmes.
Direct taxation was the major highlight of this Budget. Income up to Rs 1,00,000 per annum was exempted from tax. Income between Rs 1-1.5 lakh was taxed at 10%, Rs 1.5-2.5 lakh income at 20% and income above Rs 2.5 lakh was taxed at 30%. The government also proposed 50 paise per litre cess on petrol and diesel to fund highways.
Monetary allocation for the social sector was raised by 17 percent to Rs 1,60,887 crore along with allocation for Bharat Nirman programme increased by Rs 10,000 crore. Plan allocation for education was hiked by 24 percent and health by 20 percent. Eligibility for old age pension scheme was reduced from 65 years to 60 years.
Pranab Mukherjee increased and facilitated poor people’s access to credit. The aimed monetary target for agricultural credit was raised from Rs 1,00,000 crore to Rs 5,75,000 crore. The Budget brought about private sector reforms through various fiscal initiatives like amending the Fiscal Responsibility and Budget Management Act of 2003 (FRBM Act).
Rs 1,000 crore was allocated for skill development of the youth. Food subsidies found an allocation of Rs 10,000 in anticipation of the passing of National Food Security Bill. The 2013 Budget announced a "Nirbhaya" fund of Rs 1,000 crore in memory of the December 16, 2012 gang rape-and-murder victim.
While several announcements were made pertaining to the health sector, most of them were focussed on medical education and establishment of institutions. The finance minister also looked at big solar power projects. The 2014 Budget planned to set up an integrated Ganga conservation mission, the Namami Gange project and allocated Rs 2,037 crore for it.
This was the first full-fledged Budget by the National Democratic Alliance government. However, the social sector was left wanting. Experts pointed out that the Union Budget 2015-16 fell short of making investments for transmission infrastructure. This was not in line with the government’s intention of producing 175 GW renewable energy by 2020.
With demonetisation hitting the country three months prior to the Budget, Jaitley’s 2017 Budget was being watched by the country very closely. Additionally, 2017 also witnessed the merger of the Railway Budget with the General Budget. Income Tax rate was cut to 5 percent for individuals with an income between Rs 2.5 lakh to Rs 5 lakh.
Budget 2018 was a step towards India's road to a high growth of over 8% with manufacturing, services and exports back on good growth path. Then Finance Minister, Arun Jaitley while presenting the General Budget 2018-19 in Parliament said that Indian society, polity and economy had shown remarkable resilience in adjusting with the structural reforms like GST and demonetisation. The Budget also worked towards doubling of farmer's income by 2022.
(Interim Budget) The Interim Budget 2019-20 presented in Parliament on 1 February 2019 had a major scheme for farmers and provided for income tax sops. The then Finance Minister Piyush Goyal said the government brought down average inflation to 4.6%, lower than the tenure of any other previous government.
Finance minister Nirmala Sitharaman hiked tax on petrol and diesel, raised import duty on gold, levied additional surcharge on super rich and brought a tax on high value cash withdrawals as she sought to spur growth with reduction in corporate tax and sops to housing sector, startups and electric vehicles.
To revive the Indian economy amid the coronavirus pandemic, finance minister Nirmala Sitharaman focussed on six pillars in Union Budget 2021 — health and wellbeing, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, and minimum government maximum governance. Several direct tax reforms such as income tax relaxation for senior citizens of 75 years age and above, national faceless income tax appellate tribunal centre, pre-filing returns, advance tax on dividend income were proposed among others.
The Budget 2022, which came after two years of the coronavirus pandemic, focussed more on the infrastructure development in the country and the domestic defence sector, to offer a progressive blueprint of the Indian economy in the long run. Apart from this, capital expenditure also got a boost to support the pandemic-hit economy. Finance Minister Nirmala Sitharaman proposed no change in personal income tax rates or slabs in the Budget 2022.
Union Budget 2023, which was the last full Budget of the current Modi government before the general elections of 2024, provided major relief to the middle class, especially the salaried class, by expanding income tax relaxations. It raised income tax rebate to Rs 7 lakh for the new tax regime, against Rs 5 lakh earlier. It also allowed a standard deduction of Rs 50,000 for the new tax regime. Apart from this, in the Budget 2023, capex also got a boost.
Sectoral Report
UNION BUDGET 2024