The Union Budget 2024 has given a boost to the entrepreneurial spirit and startup ecosystem by abolishing angel tax for all classes of investors.
New Delhi, NFAPost: Emphasising support for the poor, women, youth, and farmers, Finance Minister Nirmala Sitharaman presented her 7th Union Budget in a row with a focus on increased spending, job creation, and tax relief for the middle class.
Nirmala Sitharaman presented the Union Budget 2024 with key changes in taxation included a hike in Securities Transaction Tax (STT), reduced taxes on short-term and long-term capital gains, and the abolition of angel tax. The Minister also announced modifications to the personal income tax slabs in the new Income Tax regime.
“Despite global economy remaining under the grip of policy uncertainties, India’s economic growth continues to be the shining exception and will remain so in the years ahead,” said Nirmala Sitharaman while presenting the budget.
The Minister of Finance and Corporate Affairs also pointed out that India’s inflation continues to be low, stable and moving towards the 4% target. Core inflation (non-food, non-fuel) currently is 3.1% and steps are being taken to ensure supplies of perishable goods reach market adequately.
Dwelling on the Budget theme, Nirmala Sitharaman said the Modi government particularly focus on employment, skilling, MSMEs, and the middle class. She announced the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of Rs 2 lakh crore. This year, Rs 1.48 lakh crore has been allocated for education, employment and skilling.
The Finance Minister said, for pursuit of ‘Viksit Bharat’, the budget envisages sustained efforts on the following 9 priorities for generating ample opportunities for all. They include
- Productivity and resilience in Agriculture
- Employment & Skilling
- Inclusive Human Resource Development and Social Justice
- Manufacturing & Services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research & Development and
- Next Generation Reforms
The Finance Minister said that the government will formulate an Economic Policy Framework to delineate the overarching approach to economic development and set the scope of the next generation of reforms for facilitating employment opportunities and sustaining high growth.
In a path breaking decision, the government also announced that the rules and regulations for Foreign Direct Investment and Overseas Investments will be simplified to (1) facilitate foreign direct investments, (2) nudge prioritisation, and (3) promote opportunities for using Indian Rupee as a currency for overseas investments.
The Finance Minister informed that for the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at Rs 32.07 lakh crore and Rs 48.21 lakh crore respectively. The net tax receipts are estimated at Rs 25.83 lakh crore and the fiscal deficit is estimated at 4.9% of GDP.
Nirmala Sitharaman also said the gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.01 lakh crore and Rs 11.63 lakh crore respectively.
Smt Sitharaman emphasised that the fiscal consolidation path announced by her in 2021 has served economy very well, and the government will aim to reach a deficit below 4.5% next year.
To promote investment and foster employment, Budget has given a boost to the entrepreneurial spirit and startup ecosystem, abolishing angel tax for all classes of investors. Further, a simpler tax regime for foreign shipping companies operating domestic cruises is proposed looking at the tremendous potential of cruise tourism.
Foreign mining companies selling raw diamonds in the country can now benefit from safe harbor rates which will benefit the diamond industry. Further, the corporate tax rate on foreign companies was reduced from 40 to 35% to attract foreign capital.
