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Income Tax Budget Highlights: Govt proposes tax cuts, more standard deduction
New Tax Regime Highlights: Union finance minister Nirmala Sitharaman announced change in tax structure under the new regime.
- 2:31 PM IST, July 23Rahul Gandhi's ‘kursi bachao budget’ jibe
- 1:45 PM IST, July 23Congress claims Sitharaman read their poll manifesto
- 12:43 PM IST, July 23No tax relief under old regime
- 12:29 PM IST, July 23Govt announces increase in standard deduction
- 12:23 PM IST, July 23Govt proposes to abolish ‘angel tax’ for all classes of investors
- 11:28 AM IST, July 23Sitharaman announces big bonanza for Bihar, Andhra Pradesh
- 11:22 AM IST, July 23Govt proposes ₹1.48 lakh crore for education, employment and skilling
- 10:02 AM IST, July 23Calls for doubling standard deduction to ₹1 lakh
- 9:10 AM IST, July 23‘Modi Stocks’ face investor caution before budget
- 8:54 AM IST, July 23Expectations from Budget 2024
- 8:43 AM IST, July 23Sitharaman arrives at finance ministry
- 8:03 AM IST, July 23Possible move to discourage risky investments?
- 7:56 AM IST, July 23Economic Survey cautions against surge in retail activity
- 7:47 AM IST, July 23Sitharaman to break Moraji Desai's record
- 7:33 AM IST, July 23Markets set to open little changed ahead of union budget
- 6:26 AM IST, July 23Key numbers to watch for the 1st full Budget of Modi 3.0- Nominal GDP
- 6:13 AM IST, July 23Don't expect significant relief, says another expert
- 6:13 AM IST, July 23Relief for middle class? Experts have high hopes
- 6:12 AM IST, July 23Why govt may lower rates? Here's what we expect
- 6:11 AM IST, July 23Nirmala Sitharaman to present Budget today
New Tax Regime Highlights: Union finance minister Nirmala Sitharaman presented her seventh consecutive Budget amid expectations from the middle class for relief at the tax front. The economy expanded by 8.2% in the past fiscal year, yet private consumption, which accounts for over half of the country's GDP, grew at a much slower pace of 4%. To stimulate consumer spending, the government may consider reducing personal income tax for those with the highest propensity to spend, Bloomberg News reported last month. This move could benefit individuals with annual earnings between ₹5 lakh and ₹15 lakh, who are currently taxed at rates ranging from 5% to 20%....Read More
Prime Minister Narendra Modi's government is expected to maintain a focus on reducing the fiscal deficit while also cutting taxes and increasing welfare spending to satisfy his allies.
Follow LIVE updates on Union Budget 2024-25
What are expectations of taxpayers from Budget 2024-25?
1. Adjusting income tax slabs and rates to provide relief to the middle class.
2. Increasing disposable income and consumer spending.
3. Simplifying and rationalising the capital gains tax structure across various asset classes.
4. Reducing complexity and improving compliance.
5. Reducing corporate tax rates, particularly for MSMEs.
6. Stimulating business activity and investment.
ALSO READ- Union Budget 2024: 6 new changes to income tax that the new budget may bring
What Economic Survey said about direct taxes?
According to Economic Survey 2023-24 released on Monday the growth in gross tax revenue (GTR) for FY24 was estimated at 13.4 per cent, resulting in a tax revenue buoyancy of 1.4. This growth was driven by a 15.8 per cent increase in direct taxes and a 10.6 per cent rise in indirect taxes compared to FY23. Direct taxes contributed approximately 55 per cent of the GTR, while indirect taxes made up the remaining 45 per cent. This increased contribution from direct taxes aligns with the government's efforts to enhance progressivity in taxation, the finance ministry document added.
Moreover, the efficiency of tax collection has improved over time, with the cost of collecting direct taxes dropping from 0.66 per cent of gross collections in FY20 to 0.51 per cent in FY23. The strong growth in both direct and indirect taxes, fueled by resilient economic activity and increased compliance, resulted in tax revenues exceeding conservative budgetary estimates.
PM Modi on Budget 2024-25
Prime Minister Narendra Modi, addressing reporters outside the parliament on Monday, said that the Budget for 2024-25 will outline policies for the next five years, with a focus on youth, farmers, the poor, and women. He added that the budget aims to lay the foundation for India's transformation into a developed nation by 2047.
ALSO READ- PM Narendra Modi slams Opposition before Parliament Budget Session: ‘They tried to not let me…’
PinnedIncome Tax Budget LIVE Updates: Govt revises tax structure under new regime
Income Tax Budget LIVE Updates:
₹0- ₹3 lakh - Nil;
₹3-7 lakh - 5% ;
₹7-10 lakh - 10% ;
₹10-12 lakh - 15%;
12-15 lakh - 20%; and
Above ₹15 lakh - 30%
Sitharaman said that the tax payers would save up to ₹17,500 in tax with the revised structure.
Income Tax Budget 2024 Live: Key numbers to watch for the 1st full Budget of Modi 3.0- Nominal GDP
Income Tax Budget 2024 Live:
Nominal GDP
• India's nominal GDP growth (real GDP plus inflation) for the current fiscal year is estimated at 10.5 per cent, reaching ₹327.7 trillion.
• With expectations of a normal monsoon, improved revenue collections, and increased rural consumption, there could be an upward revision in growth estimates.
• Real GDP growth for the current fiscal year is projected at 7.2 per cent, according to the RBI.
Income Tax Budget 2024 Live: Key numbers to watch for the 1st full Budget of Modi 3.0- Borrowing
Income Tax Budget 2024 Live:
Borrowing
• The government's gross borrowing for the current financial year is budgeted at ₹14.13 lakh crore.
•The market will closely monitor borrowing, especially following a higher-than-expected dividend from the RBI and financial institutions.
Income Tax Budget 2024 Live: Key numbers to watch for the 1st full Budget of Modi 3.0- GST
Income Tax Budget 2024 Live: GST
Goods and Services Tax (GST) collection for 2024-25 is estimated to rise to ₹10.68 lakh crore, an increase of 11.6 per cent.
Income Tax Budget 2024 Live: Key numbers to watch for the 1st full Budget of Modi 3.0- Tax Revenue
Income Tax Budget 2024 Live: Tax Revenue
• The Interim Budget projects gross tax revenue at ₹38.31 lakh crore for 2024-25, reflecting an 11.46% growth over the previous fiscal year.
• This includes ₹21.99 lakh crore from direct taxes (personal income tax and corporate tax) and ₹16.22 lakh crore from indirect taxes (customs, excise duty, GST).
Income Tax Budget 2024 Live: Key numbers to watch for the 1st full Budget of Modi 3.0- Capital Expenditure
Income Tax Budget 2024 Live: Capital Expenditure
• Planned capital expenditure for this fiscal year is budgeted at ₹11.1 lakh crore, up from ₹9.5 lakh crore last year.
• The government is prioritizing infrastructure development and incentivizing states to increase their capital expenditure.
Income Tax Budget 2024 Live: Key numbers to watch for the 1st full Budget of Modi 3.0- Fiscal Deficit
Income Tax Budget 2024 Live: Fiscal Deficit
• The budgeted fiscal deficit for the current fiscal year is projected at 5.1%, down from 5.8 per cent in the last fiscal year.
• This improvement is expected due to robust tax revenue growth.
• The government aims to reduce the fiscal deficit to 4.5 per cent of GDP by FY26.
Income Tax Budget 2024 Live: Personal income tax is govt's new favourite revenue well
Income Tax Budget 2024 Live: Personal income tax has become the largest revenue source for the Indian government, surpassing both corporate tax and GST, according to the Anand Rathi report.
While GST, corporate tax, and personal income tax each account for nearly 30% of gross tax collection, their growth trajectories have varied significantly since FY19.
Income Tax Budget 2024 Live: Don't expect significant relief, says another expert
Income Tax Budget 2024 Live: The gross tax/GDP ratio is expected to remain stable at 11.6 per cent, supported by improved tax compliance and strong tax buoyancy from FY24. Despite slower tax growth, minor adjustments in personal taxes are anticipated, costing the exchequer no more than 0.1 per cent of GDP, according to the Emkay Union Budget preview.
For uninitiated, tax buoyancy means how well tax revenue grows compared to the overall economy.
Income Tax Budget 2024 Live: Relief for middle class? Experts have high hopes
Income Tax Budget 2024 Live: "Tax cuts for middle-income households are highly likely, along with increased expenditure allocation for marginal and rural populations," said Kaushik Das, chief economist for India at Deutsche Bank AG.
Income Tax Budget 2024 Live: Why govt may lower rates? Here's what we expect
Income Tax Budget 2024 Live: The Indian economy grew by 8.2 per cent in the past fiscal year, but private consumption, which accounts for over half of the country’s GDP, increased by only 4 per cent. To boost consumer spending, the government may consider lowering personal income tax for those most likely to spend.
Income Tax Budget 2024 Live: Nirmala Sitharaman to present Budget today
Income Tax Budget 2024 Live: Finance minister Nirmala Sitharaman is set to deliver her budget speech on Tuesday at 11 a.m. in the Lok Sabha. All eyes are on whether she will provide the much-anticipated tax relief for the middle class, potentially leaving more money in their hands, given the tax buoyancy.