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Kotak e-Term

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  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
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  • Option to exit the policy with premium refund at the age of 60*
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  • Free Medical Check Up every 5th year**
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Ref. No. KLI/22-23/E-BB/492

T&C

Union Budget 2024-25 Key Highlights & Important Points

Budget 2024 prioritized youth and women empowerment and aimed to enhance skill development and education for overall economic growth.

  • 5,342 Views | Updated on: Jul 26, 2024
Cover Your Family’s Finances

The most awaited financial budget is finally here. On July 23, Finance Minister Nirmala Sitharaman presented her seventh consecutive Budget for the fiscal year 2024-25, surpassing the record set by former Prime Minister Morarji Desai. This Budget is particularly notable as it’s the first one delivered by the BJP-led NDA government since their re-election in June. Let’s dive into the key highlights of this Budget and see if budget 2024 expectations are met or not.

Sector-wise Allocation and Benefits: A Closer Look

This year’s budget focused on four main areas: employment, skilling, MSMEs, and middle class. The government has tried to prioritize the Viksit Bharat agenda through productivity and resilience in agriculture. Prime Minister schemes for employment-linked incentives also focus on better opportunities for working youths. Let us take a quick look at the grants, allocations, and updates different sectors received with Budget 2024.

Business/ Professionals

The 2024-25 Union Budget introduces several incentives to support businesses and professionals. The Prime Minister’s Package for Employment and Skilling outlines five key schemes to create jobs and enhance skill development.

  • Incentives for First-time Employees: Scheme A provides a one-month salary of up to ₹15,000 in three installments for first-time employees registered with the EPFO.
  • Job Creation in Manufacturing: Scheme B offers incentives for employees and employers, mainly focusing on EPFO contributions for the first four years of employment.
  • Support for Employers: Scheme C reimburses up to ₹3,000 per month for two years towards the EPFO contribution of employers for each additional employee.
  • Skilling Initiatives: A new centrally sponsored scheme aims to skill 20 lakh youth over five years, with 1,000 Industrial Training Institutes being upgraded.
  • Internship Opportunities: One crore youth will benefit from internships in 500 top companies over five years.
  • Changes to Angel Tax: Angel tax, introduced in 2012 to curb fraudulent investments, stifled startup funding. The 2024 budget proposed removing the Angel tax to boost investor confidence and fuel startup growth.

Salaried individual (Personal Tax)

Significant changes have been made to personal income tax for salaried individuals. Under the new income tax regime, the standard deduction for salaried employees has been increased from ₹50,000 to ₹75,000. Also, the deduction on family pension has been enhanced from ₹15,000 to ₹25,000.

The new tax regime features revised tax slabs:

Revised Tax Slab

Tax Percentage

0-3 lakh rupees

Nil

3-7 lakh rupees

5%

7-10 lakh rupees

10%

10-12 lakh rupees

15%

12-15 lakh rupees

20%

Above 15 lakh rupees

30%

Infrastructure

The government has committed substantial investments to boost infrastructure development across the country. Here are the key allocations for infrastructure development:

  • Capital Expenditure: ₹11,11,111 crore (3.4% of GDP) allocated for central government capital expenditure.
  • State Support: ₹1.5 lakh crore for long-term interest-free loans to states for infrastructure investments.
  • Pradhan Mantri Gram Sadak Yojana: Phase IV will provide all-weather connectivity to 25,000 rural habitations.
  • Irrigation and Flood Mitigation: Financial support of ₹11,500 crore for projects like the Kosi-Mechi intra-state link and other schemes in Bihar.

Energy Security

Budget 2024 placed a significant emphasis on energy security as one of its nine key priorities. The government recognized the crucial role of energy in powering India’s economic growth and development while addressing environmental concerns.

  • Increased Allocation: The Ministry of New and Renewable Energy (MNRE) received a substantial boost in allocation, indicating a strong commitment to clean energy.
  • Focus on Solar Energy: The budget provided a significant outlay for the Solar Power (Grid) central scheme, accelerating grid connectivity for solar power generation.
  • Nuclear Energy Push: The government emphasized the importance of nuclear energy and announced plans to partner with the private sector to research and develop new technologies, including small modular reactors.
  • Thermal Power Efficiency: The budget focused on improving the efficiency of thermal power plants through advanced ultra-supercritical (AUSC) technology.

Farmers/ Agriculture

Under this budget, a significant amount of ₹1.52 lakh crore is allocated for the agriculture and allied sectors, reflecting the government’s commitment to boosting the industry. The budget brought the following changes for farmers:

  • Increased allocation: A substantial increase in budget compared to the previous year, indicating a stronger focus on agriculture. A sum of ₹1,51,851 has been allocated to farming and related activities.
  • Natural farming promotion: The target is to introduce one crore farmers to natural farming practices in the next two years.
  • Digital infrastructure: The government will facilitate the implementation of Digital Public Infrastructure (DPI) in agriculture for better reach and efficiency.
  • Pulse and oilseed focus: Strengthening production, storage, and marketing of pulses and oilseeds to achieve self-sufficiency.

Education

When it comes to education, greater emphasis has been placed on this sector. A significant amount of ₹1.48 lakh crore is allocated for education, employment, and skilling. It reflects the government’s commitment to enhancing the quality of education and making it more accessible. Let us see what budget 2024 had for this sector:

  • Higher Education Loans: The government announced financial support for loans up to ₹10 lakh for higher education in domestic institutions. E-vouchers will be provided directly to one lakh students annually, with an interest subvention of 3%.
  • Skill Development: A new centrally-sponsored scheme for skilling will be launched in collaboration with state governments and industries. The aim is to skill 20 lakh youth over five years. Additionally, 1,000 Industrial Training Institutes (ITIs) will be upgraded.

Women

This budget made significant strides towards women’s empowerment and economic participation. The government allocated over ₹3 lakh crore for schemes benefiting women and girls, demonstrating a b commitment to their well-being and development.

  • Increased workforce participation: The government emphasized setting up working women’s hostels and creches in collaboration with industry.
  • Financial security: The budget has introduced the ‘Vatsalya’ pension scheme for minors by parents and guardians.
  • Property ownership: States are encouraged to reduce stamp duty on property purchases, especially for women. The government has also allocated ₹3 lakh crore to various schemes for girls and women.

Senior Citizens

While Budget 2024 did not make any specific, major announcements directly targeting senior citizens, it did include some indirect benefits and changes that could impact them.

  • No Changes to Tax Slabs: The income tax slabs for senior citizens remained unchanged under the old and new tax regimes. It means the exemption limit for senior citizens aged 60-80 is ₹3 lakh, and for super senior citizens (above 80) is ₹5 lakh.
  • Focus on Healthcare: The budget emphasized healthcare infrastructure and affordability, which could indirectly benefit senior citizens with higher healthcare costs.

Tax Proposals

Along with other sectors, the taxation department has also got some new updates regarding its structure. This Union Budget introduced several significant changes to the tax structure in India. Let’s take a look:

  • New Income Tax Slabs: The government introduced new income tax slabs under the new tax regime, offering more tax benefits to taxpayers.
  • Standard Deduction Hike: The standard deduction was increased from ₹50,000 to ₹75,000, providing relief to salaried individuals.
  • Changes in Capital Gains Tax: The capital gains tax regime was revamped, with increased tax rates on certain assets.
  • Customs Duty Changes: Certain goods and products saw changes in customs duty to promote domestic manufacturing and reduce import dependency.
  • Indirect Tax Measures: Adjustments were made to indirect taxes like GST and excise duty to optimize revenue collection.

Price Changes: What’s Cheaper and What’s More Expensive?

One of the most appealing aspects of a budget is its impact on everyday life for the average person. Simply put, everyone looks forward to the items that have gone up or down in the rate list.

Here is the list of items that have become cheaper:

  • Mobiles, Chargers, and Accessories: Duty cut to 15%
  • Gold and Silver: Customs duty reduced to 6%, platinum to 6.4%
  • Cancer Treatment Medicines: Three medicines exempted from essential customs duty
  • Ferro Nickel and Blister Copper: Basic customs duty removed
  • Solar Panel Manufacturing: Expanded list of exempted capital goods
  • Critical Minerals: Fully exempt custom duties on 25 minerals
  • Shrimp and Fish Feed: Customs duty reduced to 5%
  • Leather Goods: Reduced customs duty
  • X-ray Machines: Reduced duty for medical, surgical, dental, and veterinary use

Items That Have Become Costlier:

  • Telecom Equipment: Basic customs duty increased to 15% from 10%
  • Plastic Products: Custom duty hiked
  • Ammonium Nitrate: Customs duty has risen from 7.5% to 10%
  • Imported Garden Umbrellas: Increased customs duty
  • Laboratory Chemicals: Higher customs duty

Roadmap for Viksit Bharat 2047

Nine budget priorities for ‘Viksit Bharat’ were also announced along with the focus on the stated sectors. These will include the following:

  • Productivity and Resilience in Agriculture
  • Employment & Skilling
  • Inclusive Human Resource Development and Social Justice
  • Manufacturing & Services
  • Urban Development
  • Energy Security
  • Infrastructure
  • Innovation, Research & Development
  • Next Generation Reforms

FAQs about Union Budget 2024 Highlights

1

What are the highlights of Budget 2024?

The Budget 2024 highlights include increased investment in infrastructure, significant tax reforms, enhanced social welfare schemes, and initiatives regarding energy security. It also focuses on digitization and support for small and medium enterprises (SMEs).

2

What are the important points of Budget Session 2024?

Key points of the Budget Session 2024 include the introduction of new tax slabs, increased allocation for employment and skills, a boost for the manufacturing sector through various incentives, and measures to strengthen the agricultural sector.

3

What is the agenda or key focus of the 2024 budget?

The key focus of the 2024 budget is on sustainable development, economic growth, and social equity. It aims to drive innovation, support green initiatives, enhance infrastructure, and provide significant relief and support to various sectors impacted by recent economic challenges.

Suggested Readings

1. How to File Income Tax Return - Everything You Need to Know

2.Why Budget 2024 May Set Modest Tax Revenue Targets for FY25?
Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

Kotak e-Term

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Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**
Want to Know More?
Invest NOW

Ref. No. KLI/22-23/E-BB/2435

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The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.

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