Interim Budget 2024-25

Budget 2024 Live Updates : Finance Minister Nirmala Sitharaman presents her seventh consecutive Union Budget 2024-25, becoming the first finance minister to present seven consecutive budget speeches, surpassing former Prime Minister Morarji Desai’s record.

As part of the Union Budget 2024–2025, Finance Minister Nirmala Sitharaman released updated income tax slabs under the new tax system. The new tax structure raises the tax exemption threshold to ₹3 lakh and decreases the number of tax slabs to five. The goal of this action is to help taxpayers by streamlining the tax code.

For Budget 2024 live update follow official website of finance minister.

Revised tax rate under New Tax Regime :

up to ₹3 lakh: No tax
Income from ₹3 lakh to ₹6 lakh: 5%
Income from ₹6 lakh to ₹9 lakh: 10%
Income from ₹9 lakh to ₹12 lakh: 15%
Income from ₹12 lakh to ₹15 lakh: 20%
Income above ₹15 lakh: 30%

These changes aim to simplify the tax structure and provide relief to taxpayers in Budget 2024 live updates.

What deductions are available under the new regime?

Budget 2024 live updates : The available deductions and exemptions under the new tax regime are more restricted than under the previous one.

The following are some of the major deductions you are eligible to claim:

Standard Deduction: ₹50,000 for salaried individuals;

Family Pension: ₹15,000 or 1/3rd of the pension, whichever is lower;

Employer’s Contribution to NPS: Deduction under Section 80CCD(2);

Interest on Home Loan: Deduction for interest on a home loan for a let-out property under Section 24(b);

Agniveer Corpus Fund: Deduction for the amount paid or deposited under Section 80CCH(2).

But under the new system, a number of popular exemptions and deductions are no longer available, including the following:

Section 80C (except from the Agniveer Corpus Fund), Section 80D, Section 80E, and House Rent Allowance (HRA), Leave Travel Allowance (LTA), and others.

How will this impact my overall tax liability?

Budget 2024 live update : Interim Budget 2024-25

The impact of the new tax slabs on your Your total income and the amount of allowable deductions will determine your overall tax obligation.

Here’s a simplified explanation of it: Determine Your Total Income: Add up all of your revenue streams, including interest, rental income, and pay.

Use the Updated Tax Slabs: Based on your overall income, determine your tax burden using the updated tax slabs.

Take Subtractions: Take out any deductions that are allowed under the new system (such as the employer’s NPS contribution and the standard deduction).

For instance, if ₹10 lakh is your total income:

Income up to ₹3 lakh: No tax

Income from ₹3 lakh to ₹6 lakh: 5% of ₹3 lakh = ₹15,000

Income from ₹6 lakh to ₹9 lakh: 10% of ₹3 lakh = ₹30,000

Income from ₹9 lakh to ₹10 lakh: 15% of ₹1 lakh = ₹15,000

Total tax = ₹15,000 + ₹30,000 + ₹15,000 = ₹60,000

any eligible deductions (e.g., standard deduction of ₹50,000):

Taxable income = ₹10 lakh – ₹50,000 = ₹9.5 lakh

Recalculate tax based on ₹9.5 lakh.

I can assist you in calculating a more precise estimate if you provide me specifics about your income and deductions.

for more intresting update follow our official website.

Here aare the some key Highlights of the Interim Budget 2024-25

Highlights from the Interim Budget 2024-25:

Finance Minister Nirmala Sitharaman reduced the budget deficit to 5.8% of GDP from the earlier target of 5.9%. The fiscal deficit in 2024-25 is expected to be 5.1%1.

Borrowings: FY25 net borrowings were ₹11.75 lakh crore, while gross borrowings were predicted at ₹14.13 lakh crore.

Defense allocation increased by 4% to ₹6.2 lakh crore, exceeding the planned forecast for FY24.

Tax Structure:

No modifications were made to the tax structure, however tax breaks for new businesses and investments by sovereign wealth funds or pension funds were extended until March 31, 2025.

Revenue revenues for 2024-25 are expected at ₹30 lakh crore, higher from the previous revised forecast.

Social Initiatives:

Women entrepreneurs received over 30 crore Mudra Yojana loans.

Girls and women account for 43% of STEM course enrolment.

More than 70% of PM Awas Yojana residences were distributed to rural women.

Cervical cancer vaccinations for girls aged 9 to 14 will be urged.

Infrastructure and Housing:

Capital expenditure for 2024-25 grew by 11% to ₹11.11 lakh crore (3.4% of GDP).

Normal railway bogies will be converted to Vande Bharat standards.

The government plans to build 2 crore dwellings under the Pradhan Mantri Awas Yojana (Grameen) during the next five years.

A new housing development for the middle class will be introduced.

Other Key Observations of Interim Budget 2024-25

Here are some additional observations from the Interim Budget 2024-25:

Healthcare and education :

The government plans to open 75 new medical institutions in underprivileged areas. In order to improve educational quality, a new National Education Policy will be introduced.

Environment and Climate Change:

The budget includes funds for afforestation and conservation. A Clean Air Program will be implemented in 122 cities to tackle air pollution.

Agriculture and Rural Development:

The government wants to boost agricultural loans to ₹20 lakh crore. Rural infrastructure development will receive major funding.

Tech and Innovation:

The funding prioritizes research and development for new technologies. A National Quantum Mission will be established to advance quantum computing.

The government intends to enhance the banking industry and promote financial inclusion. Measures will be taken to improve the digital payment infrastructure.

Remember, these are just highlights, and you can explore more details from the official sources. If you have any specific questions, feel free to ask!

Examples of Markets Reactions to Interim Budget 2024-25 Announcements

Market reaction after interim Budget 2024-25 anouncement

Here are some common market reactions to budget announcements:

Stock markets:

Positive Budget: When the budget is seen as beneficial to economic growth, stock markets tend to rise. Infrastructure, healthcare, and technology may experience increasing investment interest.

Negative Budget: If the budget disappoints investors (for example, by raising taxes or failing to implement reforms), stock markets may fall.

Currency markets: A budget that promotes economic growth and stability may strengthen the local currency.

Bond Market Reaction :

In contrast, uncertainty or bad surprises may weaken it. Bond prices and yields fluctuate inversely. Bond prices may climb if the budget shows fiscal responsibility and lower borrowing.

Conversely, concerns about fiscal deficits can lead to higher yields.

Sector-specific reactions:

Real Estate: Housing, infrastructure, and affordable housing policies all have an impact on real estate stocks.

Automobiles:

Tax changes, electric car incentives, and gasoline prices all have an impact on auto stock values.

Budget allocations in healthcare have an impact on pharmaceutical and hospital stocks.

Commodity markets: Budget announcements for agriculture, mining, and infrastructure can all have an impact on commodity prices (for example, gold, silver, and oil).

Remember that market reactions are complex and impacted by many factors other than the budget.

Always seek the advice of financial professionals and examine precise facts for accurate results. Please feel free to ask any other questions you may have!

For more latest information follow our official website.

Budget 2024 Live Updates: FM Nirmala Sitharaman announces revised rate slabs under new tax regime