Income Tax Budget Highlights: Govt proposes tax cuts, more standard deduction

The Union Budget, tabled by Finance Minister Nirmala Sitaraman in the Parliament today, proposed that income from letting out of a house or part of the house by the owner, would not be charged under the head 'profits and gains of business or profession' and rather it will be chargeable to tax under the head 'income from house property'.

Read More.

Union Home Minister Amit Shah said on Tuesday that Budget 2024-25 will speed up India's progress toward becoming a developed nation by creating new jobs and opportunities.

He added that the budget shows Prime Minister Narendra Modi's strong commitment to boosting economic growth by supporting India's entrepreneurs and making it easier to do business.

Shah mentioned that the budget simplifies tax assessment rules, providing relief to taxpayers.

He also said the budget highlights the country's new sense of purpose, hope, and optimism under the NDA government and strengthens these feelings.

Govt to undertake comprehensive review of Income Tax Act to make it easy to read, says Finance Minister Nirmala Sitharaman.

A 1% TDS will apply to the sale of an immovable property valued at ₹50 lakh or more, even if multiple buyers and sellers are involved in the transaction. Finance Minister Nirmala Sitharaman clarified this in her Budget Speech to address misunderstandings about tax rules.

The government announced on Tuesday that 1% TDS would apply to the transfer of immovable property with multiple sellers or buyers when the total amount is ₹50 lakh or more. The finance minister mentioned this TDS rule in her 2024-25 Budget speech.

FM virtually adopted ideas underlying Cong proposals on employment-linked incentive scheme, apprenticeship, angel tax abolition, says Congress leader P Chidambaram.

Finance Minister Nirmala Sitharaman announced income tax relief for the middle class, a ₹2 lakh crore allocation for job creation over the next five years, and increased spending for states governed by her party's new coalition partners as she presented the Modi 3.0 government's first budget after the general elections.

With rural distress and unemployment blamed for the BJP losing its majority, Sitharaman, in her seventh budget, allocated ₹2.66 lakh crore for rural development and kept spending on long-term infrastructure projects at ₹11.11 lakh crore to boost economic growth.

She removed the 'angel tax' for all types of startup investors, reduced customs duty on mobile phones and gold, and simplified capital gains tax. However, she increased the securities transaction tax (STT) on futures and options, which caused stock markets to drop.

"The BJD walked out from the Rajya Sabha in protest. We have been categorically demanding special status, which has not been provided. Funds were provided to Bihar and Andhra Pradesh, who have been demanding special status. Odisha has been completely neglected, has been devoid of any support. It is extremely shocking, we strongly condemn this Budget. Nothing has been given to Odisha," BJD leader Sasmit Patra told PTI.

Union finance minister Nirmala Sitharaman said the government's attempt is to expand India's tax next and boost revenue mobilisation.

“The attempt to widen the tax net is something which we have been repeatedly saying... that India's tax net will have to be widened whether it is in the direct taxation and indirect taxation,” Sitharaman said.

"Second, there are also now the PSU dividends that have been improving because their valuations have gone up really, and their performance has also increased. So, revenue mobilisation is not just tax based, you have non-tax revenue mobilisation which are also coming up," she added.

Congress MP Rahul Gandhi posted on X, "Kursi Bachao Budget.

- Appease Allies: Hollow promises to them at the cost of other states.

- Appease Cronies: Benefits to AA with no relief for the common Indian.

- Copy and Paste: Congress manifesto and previous budgets."

Income Tax Budget LIVE Updates: The Congress claimed that the government has drawn heavily from the grand old party's election manifesto.

“I am happy she has virtually adopted the Employment-linked incentive (ELI) outlined on page 30 of the Congress Manifesto,” Chidambaram said.

“I am also happy that she has introduced the Apprenticeship scheme along with an allowance to every apprentice spelt out on page 11 of the Congress Manifesto.”

Income Tax Budget LIVE Updates:

“I was pleased to hear that the FM will abolish the Angel Tax. Congress has pleaded for the abolition for many years and most recently in the Congress Manifesto on page 31,” former union minister P Chidambaram posted on X.

Income Tax Budget LIVE Updates: While Sitharaman proposed an increase in standard deduction by ₹25,000 and a change in tax structure under the new regime, those filing returns under the old regime did not get any relief.

Sitharaman announces increase in standard deduction to ₹75,000 under the new tax regime.

Sitharaman proposed abolishing the angel tax for all classes of investors. "Angel tax" is a term used to describe a tax levied on the investment received by startups from angel investors.

Income Tax Budget LIVE Updates: Sitharaman proposes to increase exemption on capital gains tax for certain assets to ₹1.5 lakh.

Income Tax Budget LIVE Updates: Sitharaman announces comprehensive review of Income Tax Act, 1961 to minimise litigations.

Sitharaman proposes to reduce basic customs duty on mobile phones and chargers to 15%.

“I propose to undertake the rate structure over the next six months to rationalise and simplify customs duty,” Sitharaman says.

Income Tax Budget LIVE Updates: Sitharaman unveiled a series of initiatives to transform cities into dynamic growth hubs. These measures focus on the orderly development of peri-urban areas, creative redevelopment of brownfields, and a robust push for infrastructure improvements. 14 large cities with populations exceeding 30 lakh will develop Transit Oriented Development (TOD) plans.

Income Tax Changes LIVE Updates: Sitharaman proposed setting up of street food hub in select cities.

Income Tax Changes LIVE Updates: Union finance minister announces ₹11,500 crore for Bihar for flood control measures.

Income Tax Changes LIVE Updates: Sitharaman announced nine priorities in the Union Budget 2024-25 for generating ample opportunities in the economy. The nine priorities include productivity, jobs, social justice, urban development, energy security, infrastructure, innovation and reforms.

Income Tax Changes LIVE Updates: “Recognising the state's need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, ₹15,000 crore will be arranged with additional amounts in future years,” Finance Minister Nirmala Sitharaman says.

The Union government has proposed ₹26,000 crore for various road projects in Bihar, Sitharaman said in Lok Sabha.

"On the Amritsar-Kolkata industrial corridor, we will support the development of an industrial node at Gaya in Bihar. We will also support the development of road connectivity projects- Patna -Purnea expressway, Buxar- Bhagalpur highway, Bodhgaya- Rajgir-Vaishali- Darbhanga and an additional two-lane bridge over river Ganga in Buxar for ₹26,000 crores."

“This year, I have made a provision for ₹1.48 lakh crore for education, employment and skilling. The people have given a unique opportunity to our government to take the country on the path of strong development and an all round prosperity,” Sitharaman said.