Interim Union Budget 2024

INTERIM BUDGET PROPOSES TO RETAIN TAX RATES FOR DIRECT AND INDIRECT TAXES

No changes to taxation: The government retains the same tax rates for direct taxes and indirect taxes including import duties. To ensure continuity in taxation, the Union Finance Minister proposed to extend certain tax benefits to start-ups and investments made by sovereign wealth or pension funds and tax exemption on certain income of some IFSC units till 31.03.2025.

To provide a relief to a large number of petty, non-verified, non-reconciled or disputed direct tax demands, the government has proposed to withdraw such outstanding direct tax demands up to ₹25,000 pertaining to the period up to financial year 2009-10 and up to ₹10,000 for financial years 2010-11 to 2014-15. This is expected to benefit about one crore tax-payers.

ROOFTOP SOLARISATION TO ENABLE ONE CRORE HOUSEHOLDS TO OBTAIN UPTO 300 UNITS OF FREE ELECTRICITY EVERY MONTH

Through rooftop solarization, one crore households will be enabled to obtain up to 300 units free electricity every month.  The benefits expected from this are as follows:

i) Savings up to fifteen to eighteen thousand rupees annually for households from free solar electricity and selling the surplus to the distribution companies

ii) Charging of electric vehicles

iii) Entrepreneurship opportunities for a large number of vendors for supply and installation

iv) Employment opportunities for the youth with technical skills in manufacturing, installation and maintenance

VACCINATION TO PREVENT CERVICAL CANCER

Government proposes vaccination to prevent Cervical Cancer and amalgamation of various schemes for maternal and child care. The vaccination programme will be for girls in the age group of 9 to 14 years for prevention of cervical cancer.  The Government will encourage this vaccination among the eligible categories.

BUDGET PROPOSES TO ESTABLISH A CORPUS OF RUPEES ONE LAKH CRORE FOR YOUTH

Budget proposes to establish a corpus of rupees one lakh crore with fifty- year interest free loan. The corpus will provide long term financing or refinancing with long tenors and low or nil interest rates. The corpus will encourage the private sector to scale up research and innovation significantly in the sunrise domains.

NEW CORPUS OF RUPEES ONE LAKH CRORE TO BOOST PRIVATE INVESTMENT IN SUNRISE TECHNOLOGIES

The Government proposes to create a corpus of Rupees One Lakh Crore to boost private investment in sunrise technologies. The corpus will be established with fifty-year interest free loan to provide long-term financing or refinancing with long tenors and low or nil interest rates.

SCHEME TO HELP DESERVING SECTIONS OF MIDDLE CLASS “LIVING IN RENTED HOUSES, OR SLUMS, OR CHAWLS AND UNAUTHORIZED COLONIES” TO BUY OR BUILD THEIR OWN HOUSES

Government will launch a scheme to help deserving sections of the middle class “living in rented houses, or slums, or chawls and unauthorized colonies” to buy or build their own houses. Two crore more houses will be taken up in the next five years to meet the requirement arising from increase in the number of families.

PROJECTS FOR PORT CONNECTIVITY, TOURISM INFRASTRUCTURE, AND AMENITIES TO BE TAKEN UP ON OUR ISLANDS, INCLUDING LAKSHADWEEP

To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure, and amenities will be taken up on the islands, including Lakshadweep and this will help in generating employment.

States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at global scale. Long-term interest free loans will be provided to States for financing such development on matching basis.

AMBITIOUS PLAN TO BOLSTER ELECTRIC VEHICLE ECOSYSTEM

In a transformative move towards sustainable transportation, the union government announced an ambitious plan to bolster the electric vehicle (EV) ecosystem while presenting the Interim Budget 2024-25. This strategic initiative focuses on both manufacturing and charging infrastructure, aiming to fortify and broaden the landscape for electric vehicles. With a dedicated focus on enhancing public transportation, the government is set to encourage the widespread adoption of electric buses. This will be facilitated through the implementation of a payment security mechanism, fostering confidence among e-bus operators. The initiative is expected to invigorate the public transport network, promoting an eco-friendly and energy-efficient mode of commuting.

OTHER HIGHLIGHTS

  • Healthcare cover under Ayushman Bharat scheme to be extended to all ASHA workers, Anganwadi Workers and Helpers.
  •  A new scheme to be launched for strengthening deep-tech technologies for defence purposes and expediting ‘atmanirbharta’.
  • Forty thousand normal rail bogies to be converted to Vande Bharat standards. Three major economic railway corridor programmes identified under the PM Gati Shakti to be implemented to improve logistics efficiency and reduce cost.
  • Coal gasification and liquefaction capacity of 100 MT to be set up by 2030
  • States to be encouraged to take up comprehensive development of iconic tourist centres including their branding and marketing at global scale

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