The interim budget was announced on 1st February and as expected, there were no major policy reforms. The major focus was on infrastructure, tourism, boosting research, development and expansion of renewable sources of energy.
Here are some key takeaways on the tax front:
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There were no changes on the tax side. Both, direct and indirect tax rates remain the same.
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Outstanding direct tax demands up to Rs 25,000 till the financial year (FY) 2009-10 and up to Rs 10,000 between FY 2010-11 and FY 2014-15 will be waived off. This is expected to benefit almost 1 crore taxpayers having pending tax demand disputes up to the limit announced for the specified financial years.
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The tax benefits offered to startups, sovereign and pension funds, and certain investment units housed in GIFT City’s International Financial Services Centre (IFSC), that were expiring on 31st March 2024, have been extended up to 31st Match 2025.
Other key announcements from Budget 2024:
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The government has extended the benefits of PM Awaas Yojna and shall provide subsidies for 2 crore more houses.
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About 1 crore households will get 300 units of electricity free every month through rooftop solarization. Moreover, every household is expected to save ₹15,000 to ₹18,000 annually.
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To promote research and innovation, a corpus of ₹1 lakh crore will be established with a fifty-year interest-free loan to provide long-term financing at low or nil interest rates.
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40 thousand normal rail bogies are to be converted to Vande Bharat standards.
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3 major economic railway corridor programmes will be implemented to improve logistics efficiency and reduce costs. These are:
-Energy, mineral and cement corridors
-Port connectivity corridors
-High-traffic density corridors -
There has been a lot of focus on domestic tourism as well. Following the same, the government has also offered interest-free loans to state governments if they take measures to boost tourism within the state boundaries.
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The healthcare coverage under Ayushman Bharat scheme is to be extended to all ASHA workers, Anganwadi Workers and Helpers.
Despite this being an interim budget, there were many expectations for some tweaks in the tax policies as this was the last budget before the general elections. However, the finance minister proposed no reforms. We can still hold on to our expectations until the full budget is announced after the elections are held and the new government is formed.
Here’s a video where we answer the most common questions about budget and how it affects us.
