The Central Government has officially notified the Finance (No. 2) Act, 2024 which was passed by Parliament in the Monsoon Session, introducing a host of financial reforms aimed at strengthening the Indian economy.
Read More: Union Budget 2024-25: Key Highlights
Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-25, marking the seventh consecutive budget under her stewardship and the first of the Modi 3.0 administration.
The budget emphasizes employment generation and skill development, outlining nine key priorities such as enhancing agricultural productivity, creating jobs, fostering inclusive growth, and promoting urban development.
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Key tax changes include a new tax regime aimed at easing the burden on the salaried class, with a standard deduction of Rs. 75,000 and revised income tax rates. Corporate tax adjustments aim to attract foreign investment by reducing rates for foreign companies to 35%. The budget also proposes stringent measures against non-reporting of foreign assets and abolishes the Angel Tax to boost startup investments.
The budget proposes reduced TDS rates for e-commerce operators and decriminalization of TDS defaults to improve business conditions. It plans a comprehensive review of the Income Tax Act, merges tax exemption regimes for charities, and adjusts customs duties to support domestic industries, including exemptions and reductions for electronics, solar products, and medicines.
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Additional initiatives include support mechanisms for MSMEs, amendments to expedite insolvency proceedings, significant investments in urban housing and infrastructure, enhancements in banking services, and increased Mudra Loan limits. The Union Budget 2024-25 aims to lay a robust foundation for India’s economic future through comprehensive tax reforms and targeted economic measures.
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