Understanding India’s Union Budget 2024: Major tax cuts, loan increases, and how it will impact you

In a move aimed at reducing the financial burden on the common man and stimulating economic growth, the Indian government has unveiled the Union Budget for Fiscal Year 2024-2025. Key changes include modifications to income tax slabs, increased Mudra loan limits, lower mobile phone costs, and significant investments in various sectors including education, organic farming, and regional development. This comprehensive budget is poised to impact various facets of the economy and societal development.

Revised Income Tax Slabs

One of the standout features of the Union Budget 2024 is the revision of income tax slabs. The new tax regime introduces a progressive structure designed to alleviate the tax burden on individuals:

– Income up to INR 3 lakh: No tax

– Income between INR 3 lakh and 7 lakh: 5 per cent tax

– Income between INR 7 lakh and 10 lakh: 10 per cent tax

– Income between INR 10 lakh and 12 lakh: 15 per cent tax

– Income above INR 15 lakh: 30 per cent tax

This restructuring is expected to provide significant relief to lower and middle-income earners, potentially boosting disposable income and consumer spending.

India’s Union Budget 2024 introduces revised income tax slabs, increased Mudra loan limits, lower mobile phone costs, and significant investments in education, organic farming, and regional development.

Enhanced Mudra Loan Limits

The Union Budget has also addressed small business financing by increasing the Mudra loan limit from INR 10 lakh to INR 20 lakh. This increase will benefit individuals who previously took loans under the TARUN category and have repaid them. This enhanced limit is expected to facilitate greater financial support for small businesses and entrepreneurs.

Reduction in Mobile Phone Costs

In a bid to make technology more affordable, Finance Minister Nirmala Sitharaman announced a 15 per cent reduction in customs duty on mobile phones and chargers. This move is anticipated to lower the cost of these electronic goods, providing consumers with financial relief and potentially stimulating increased consumer electronics purchases.

Support for Organic Farming

A major initiative in the budget is the government’s commitment to promoting organic farming. The budget sets an ambitious target to introduce one crore farmers to organic farming practices over the next two years. Additionally, the government will release 109 varieties of 32 different crops, aiming to support the growth of the organic farming sector.

Investment in Education and Skills Development

The Union Budget allocates INR 1.48 lakh crore towards the education and employment sectors. This funding will focus on skill development programs for the youth, aligning with the government’s agenda to enhance educational outcomes and prepare a skilled workforce for future challenges.

Financial Support for Andhra Pradesh

In a special provision, Finance Minister Sitharaman allocated INR 15,000 crore to Andhra Pradesh for developmental projects. This funding is expected to support various infrastructure and regional development initiatives within the state, with potential for additional funding in the future.

Youth Skilling Initiatives

The budget introduces five new schemes with a combined outlay of over INR 2 lakh crore aimed at skilling 4.1 crore youth. These initiatives mark a significant step towards enhancing workforce readiness and employability, reflecting the government’s focus on youth empowerment and job creation.

Inflation and Economic Stability

Finance Minister Sitharaman reassured that inflation is under control and moving towards the target of 4 per cent. This indicates a stable economic environment, which is crucial for maintaining consumer confidence and encouraging investment.

The Union Budget 2024 presents a comprehensive set of reforms and initiatives aimed at reducing taxes, improving access to finance, supporting agriculture and education, and fostering regional and youth development. These measures are expected to spur economic growth and improve living standards across various sections of society.