The Union Budget 2024 has sparked considerable interest across India, with a slew of new schemes and benefits designed to impact various sectors positively. As the government outlines its financial roadmap for the upcoming fiscal year, the budget 2024 brings several crucial updates that aim to simplify tax regulations, boost housing sector growth, and provide much-needed support for businesses and individuals alike. This comprehensive review delves into the income tax budget, home loan in budget 2024, and the new budget housing schemes. With these changes, taxpayers and home buyers will gain insights into how the budget impacts their financial planning and investment strategies.
Overview of Budget 2024
The 2024 budget marks a significant shift in India’s financial policies. It focuses on increasing economic growth, improving social welfare, and fostering infrastructure development. The government has introduced several key proposals that will affect personal finance, including updates to income tax slabs, new schemes for home loans, and various incentives for different sectors. Understanding these changes is crucial for making informed financial decisions and optimising the benefits available under the new regime.
What is a budget?
The Union Budget is the annual financial statement presented by the government, outlining its revenue and expenditure plans for the coming fiscal year. It is a comprehensive document that includes tax proposals, economic policies, and allocations for various government schemes. The budget aims to address economic challenges, promote growth, and ensure equitable distribution of resources. For Budget 2024, the focus is on enhancing financial inclusivity, stimulating economic growth, and addressing key issues in the housing and financial sectors.
New direct tax changes in Budget 2024
The budget 2024 introduces several direct tax proposals aimed at simplifying tax structures and providing relief to taxpayers. These changes include revisions to income tax slabs, increased deductions, and the introduction of new TDS rates. For more detailed information on tax concepts and planning, refer to guide on tax concepts.
Increased limit of standard deduction and family pension deduction under new regime 2024-25
The budget 2024 has raised the limit for standard deductions from ₹50,000 to ₹75,000 and, family pension deductions significantly, under the new tax regime. This change is designed to provide additional financial relief to taxpayers. For more insights into standard deductions, visit our standard deduction guide.
Change in income tax slabs under new tax regime 2024-25
The revised income tax slabs for the new tax regime are as follows:
| Income Range | Tax Rate |
| Up to ₹3 lakh | Nil |
| ₹3 lakh - ₹7 lakh | 5% |
| ₹7 lakh - ₹10 lakh | 10% |
| ₹10 lakh - ₹12 lakh | 15% |
| ₹12 lakh - ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
These changes aim to reduce the tax burden on individuals. For detailed income tax slab information, check our income tax slab guide and use our income tax calculator for precise calculations.
Updating Capital Gains Tax (STT) and Securities Transaction Taxes (STT) under the new regime 2024
The budget 2024 has also updated the tax provisions for capital gains tax and securities transaction tax. Here are the new rates:
| Type | Old Rate | New Rate |
| Short-term capital gains | 15% | 20% |
| Long-term capital gains | 10% | 12.5% |
| Securities Transaction Tax (STT) on Futures | 0.0125% | 0.02% |
| Securities Transaction Tax (STT) on Options | 0.0625% | 0.1% |
For more information on saving property gain tax, visit the guide on property gain tax on Bajaj Finance.
Abolishment of angel tax in budget 2024
One of the significant highlights of budget 2024 is the abolishment of angel tax. This tax, which was levied on investments in startups, has been a contentious issue for entrepreneurs. The removal of this tax is expected to encourage more investments in the startup ecosystem and stimulate innovation.
Reducing corporate taxes on foreign companies
The budget 2024 proposes a reduction in corporate taxes for foreign companies operating in India. This move aims to attract more foreign investments and boost economic growth. The new tax rate will be 35%, down from the previous 40%, making India a more attractive destination for global investors and attracting more FDIs.
Increased deduction on employer's contribution to pension scheme
Under the new budget, there is an increased deduction on the employer's contribution to the pension scheme. It now stands at 14% of the employee’s salary, compared to previous 10%,
| Particulars | Old Regime (Pre-Budget) | Old Regime (Post-Budget) |
| Employer’s contribution to NPS | Up to 10% of salary | No change |
| Employee’s contribution to NPS | Rs. 50,000 | No change |
This change aims to encourage savings for retirement and provides additional financial security for employees. For tips on reducing tax on pension income, visit our pension tax reduction guide.
Introducing new indirect tax proposals:
The Budget 2024 also introduces several indirect tax proposals. These include changes to customs duties, GST rates, and exemptions for critical goods. These reforms are designed to simplify the tax structure and enhance compliance.
Customs duties reductions and exemptions for critical goods
The new budget has reduced customs duties on essential and critical goods. This includes reductions in duties for medical equipment, technology products, and raw materials. These changes aim to lower costs and enhance availability of critical goods.
| Category | Details |
| Gold and Silver | Reduce Customs Duty on gold and silver to 6%. |
| Mobiles and Accessories | Reduce Customs Duty on mobile phones, mobile PCBA, and mobile chargers to 15%. |
| Respite for Cancer Patients | Fully exempt three more medicines from Customs duties.Changes in Customs Duty on X-ray tubes and flat panel detectors under the phased manufacturing programme. |
| Solar Panels, Critical Minerals | Fully exempt Customs duties on 25 critical minerals.Reduce Customs Duty on two critical minerals.Minerals include lithium, copper, cobalt, and rare earth elements |
| Electronics | Remove Customs Duty on oxygen-free copper for manufacturing resistors, subject to conditions.Exemption likely for certain parts used in connectors |
| Leather and Textile | Reduce Customs Duty on real down filling material from duck or goose.Reduce Customs Duty on methylene diphenyl diisocyanate (MDI) for spandex yarn from 7.5% to 5%.Simplify and rationalise export duty structure on raw hides, skins, and leather |
| Telecommunication | Increase Customs Duty from 10% to 15% on PCBA of specified telecom equipment. |
| Other Metals | Remove Customs Duty on ferronickel and blister copper.Continue nil Customs Duty on ferrous scrap and nickel cathode.Concessional Customs Duty of 2.5% on copper scrap. |
Updated major GST reforms and amendments
Significant GST reforms have been introduced in the Budget 2024, including:
| Description | GST Rate | Examples |
| Goods and services exempted from GST | 0% | Fresh fruits and vegetables, non-AC hotel stays, etc. |
| Textiles | 0.25% | Fabrics, etc. |
| Gold | 3% | Jewellery, Bars, Coins, etc. |
| Essential items and services | 5% | Packaged and processed foods, milk, curd, newspapers, books, transport services, etc. |
| Most processed goods and services | 12% | Clothing, footwear, soaps, detergents, etc. |
| Most general goods and services | 18% | Electronics, home appliances, furniture, household items, etc. |
| Luxury goods and services | 28% | Luxury cars, gambling & betting, pan masala, carbonated drinks, etc. |
Budget 2024: What gets cheaper and costlier in budget 2024
Category |
Items Getting Cheaper |
Items Getting Costlier |
Electronics |
Mobile phone components, lithium-ion batteries |
Imported electronic devices, laptops, tablets |
Household appliances |
Televisions (up to 32 inches) |
Air conditioners, fully automatic washing machines |
Automobiles |
Electric vehicles (EVs), parts for EV manufacturing |
Luxury cars, imported vehicles |
Healthcare |
Medicines for rare diseases |
Imported medical devices |
Jewellery |
Lab-grown diamonds |
Gold and silver jewellery |
Miscellaneous |
Toys, certain paper products |
Imported kitchenware, silverware |
For more information on GST and affordable housing, check GST on affordable housing guide.
Budget highlights
- Expenditure: The government plans to spend Rs. 47,65,768 crore in 2024-25, marking a 6% increase from the revised 2023-24 estimate. Interest payments make up 25% of this total expenditure and 40% of revenue receipts.
- Receipts: Receipts, excluding borrowings, are projected at Rs. 30,80,274 crore in 2024-25, reflecting a 12% rise from the revised estimate for 2023-24. Tax revenue, a significant portion of these receipts, is also expected to grow by 12%.
- GDP: The government forecasts a nominal GDP growth rate of 10.5% in 2024-25, combining real growth and inflation.
- Deficits: The revenue deficit for 2024-25 is aimed at 2% of GDP, down from the 2.8% revised estimate for 2023-24. The fiscal deficit target for 2024-25 is set at 5.1% of GDP, lower than the 5.8% revised estimate for 2023-24.
- New schemes: The Department of Economic Affairs has been allocated Rs. 70,449 crore for new schemes, intended for capital expenditure. This amount constitutes 7.5% of the total capital outlay, though details of the schemes are not yet available.
Priority & Sector-Wise Budget 2024 Highlights:
Support for Businesses and Entrepreneurs Under New Budget 2024
The Budget 2024 includes several measures to support businesses and entrepreneurs. This includes increased access to credit, subsidies for innovation, and tax incentives and exemptions for startups. These measures are designed to foster entrepreneurship and boost economic growth.
Employment, Skilling, and Education Initiatives Under New Budget 2024
The government has introduced new initiatives aimed at creating jobs, enhancing skills, and improving education. This includes increased funding for training, support for educational institutions, technological advancements, and job creation programmes.
Schemes for Women and Social Welfare Under New Budget 2024
The Budget 2024 includes several schemes with a budget of ₹3 lakh crore, aimed at supporting women and enhancing social welfare. This includes increased funding for women-centric programmes, support for women entrepreneurs, and initiatives to improve social security.
Agricultural and Rural Development Under New Budget 2024
Significant investments have been made in agricultural and rural development. This includes increased funding for rural infrastructure, subsidies for farmers, exemption in taxes for farming operationsand initiatives to improve agricultural productivity.
Introducing PM Awas Yojana Urban 2.0
The PM Awas Yojana Urban 2.0 has been introduced to further promote affordable housing in rural and urban areas. This scheme aims to provide financial assistance for home construction and improvement, making homeownership more accessible. For details on this scheme, check PM Awas Yojana guide.
Infrastructure and Capital Expenditure Under New Budget 2024
The Budget 2024 allocates significant funds for infrastructure development and capital expenditure. This includes investments in roads, bridges, and public transportation, aimed at enhancing and modernising connectivity and boosting economic activity.
Digital and Technological Advancements Under New Regime 2024
The Budget 2024 highlights the importance of digital and technological advancements. This includes increased funding for digital infrastructure, support for tech startups, and initiatives to promote digital literacy.
Healthcare and Social Security Under New Regime 2024
Healthcare and social security have received increased attention in the Budget 2024. This includes expanded healthcare coverage, increased funding for medical facilities, and enhanced social security benefits.
Environmental and Renewable Energy Initiatives Under New Regime 2024
The Budget 2024 also focuses on environmental sustainability and renewable energy. This includes investments in green technologies, subsidies for renewable energy projects, and initiatives to reduce carbon emissions.
Financial Sector Reforms and Support Under New Regime 2024
Financial sector reforms include measures to enhance transparency, improve financial inclusion, and support the growth of the financial sector. This includes increased regulation and support for financial institutions.
Support for Urban and Industrial Development Under New Regime 2024
Urban and industrial development has been prioritised in the Budget 2024, with increased funding for infrastructure projects, industrial growth initiatives, and urban planning.
Conclusion
The Union Budget 2024 presents a range of changes and new schemes that are set to impact various sectors. With updates to income tax slabs, enhanced home loan benefits, mortgage loan impact and new budget housing schemes, taxpayers and homebuyers will find numerous opportunities to optimise their financial planning. Staying informed about these changes is crucial for making the most of the benefits provided.
