Budget 2024-25

Q1: What is the primary focus of the Union Budget 2024-25?

A1: The primary focus of the Union Budget 2024-25 is on employment genera on, skill
development, MSME growth, and infrastructure investment. The budget also emphasizes inclusive
growth with a special focus on women, youth, and farmers, while promo ng self-reliance and
sustainability in agriculture and energy.

Q2: How much has been allocated for agriculture and rural development in the Budget 2024-25?
A2: A provision of ₹1.52 lakh crore has been made for the agriculture and allied sectors. Addi onally,
₹2.66 lakh crore has been allocated for rural development, including infrastructure projects like
PMGSY Phase IV to provide all-weather connec vity to 25,000 rural habita ons.

Q3: What is the significance of the Prime Minister's Pckage announced in the Budget 2024-25?
A3: The Prime Minister’s Package focuses on skilling and employment genera on for 4.1 crore
youth over the next 5 years, with an outlay of ₹2 lakh crore. The package includes schemes like
internships in top 500 companies and support for women’s par cipa on in the workforce, among
other ini a ves.

Q4: How does the Budget 2024-25 aim to improve the space economy in India?
A4: The Budget outlines plans to expand India’s space economy by 5 mes over the next 10 years,
with a special venture capital fund of ₹1,000 crore to encourage private sector investment and
innova on in space technology.

Q5: What are the key tax reforms introduced in the Union Budget 2024-25?
A5: Key tax reforms include:

 Increase in standard deduc on for salaried individuals to ₹75,000 in the new tax regime.

 Aboli on of Angel Tax for all investors to boost the startup ecosystem.

 Reduc on in corporate tax for foreign companies from 40% to 35% to a ract foreign
investments.

 Capital gains exemp on limit raised to ₹1.25 lakh per year for lower and middle-income
groups.

Q6: How does the Budget 2024-25 support MSMEs?

A6: The Budget proposes several ini a ves for MSMEs, including:

 Enhanced Mudra Loan limit up to ₹20 lakh for successful entrepreneurs.

 Financial support for food irradia on units, quality tes ng labs, and e-commerce export
hubs.

 Establishment of a self-financing guarantee fund for MSMEs to improve credit access.

Q7: What is the goal of the “Purvodaya” ini a ve men oned in the Budget 2024-25?
A7: The Purvodaya ini a ve focuses on the comprehensive development of the Eastern region of
India, covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. It aims to enhance
infrastructure, human resource development, and generate economic opportuni es to foster
inclusive growth in these states.

Q8: How has the Government addressed energy security in the Budget 2024-25?
A8: The Budget emphasizes energy security, with a key ini a ve being the PM Surya Ghar Mu Bijli
Yojana, which provides free roo op solar electricity (up to 300 units per month) to 1 crore
households. Addi onally, nuclear energy is expected to play a significant role in India’s energy mix.

Q9: What changes have been made to direct taxes in the Budget 2024-25?
A9: Key direct tax changes include:

 A revised tax structure under the new tax regime, with slabs ranging from 5% to 30%.

 Angel Tax has been abolished to encourage investment in startups.

 Family pension deduc on increased to ₹25,000.

 Standard deduc on increased for salaried employees to ₹75,000.

Q10: How will the proposed changes to the income tax structure impact taxpayers in India?
A10: The changes will make tax calcula ons simpler, especially for salaried individuals, by increasing
the standard deduc on and reducing compliance burdens. The new tax slabs will benefit individuals
with annual incomes between ₹7 lakh to ₹15 lakh, providing them with significant tax relief.

Q11: What is the fiscal deficit target for FY 2024-25, and how does it compare to the previous year?
A11: The fiscal deficit for FY 2024-25 is targeted at 4.9% of GDP, which is in line with the fiscal
consolida on path outlined earlier. The Government aims to bring the deficit below 4.5% in the
coming year.

Q12: Can you explain the ra onale behind the reduc on in custom du es on gold and silver in the
Budget?
A12: The reduc on in customs duty on gold and silver from 12.5% to 6% will likely make these
precious metals cheaper for consumers. This could help reduce smuggling, promote transparency in
the gold market, and support India’s jewelry export industry.

Q13: How does the Union Budget 2024-25 aim to boost India’s start-up ecosystem?
A13: The Budget abolishes Angel Tax for all investors, thus providing relief to start-ups and investors.
This measure aims to encourage more investments in early-stage businesses. Addi onally, the
Budget offers easier access to financing and simplified tax regimes for start-ups.

Q14: What measures has the government introduced to improve tax compliance and reduce
disputes?
A14: The government has proposed a simplifica on of tax structures and ra onaliza on of GST.
They also introduced the Vivad se Vishwas Scheme 2024 to resolve pending tax disputes and
increase certainty in interna onal taxa on.

Q15: How will the new measures for MSMEs contribute to economic growth?
A15: The Budget aims to boost MSMEs by providing increased access to credit, establishing export
hubs, and offering financial support for infrastructure such as food safety labs and irradia on units.
These steps will support the growth and interna onal compe veness of MSMEs.

Q16: What are the key proposals for boos ng manufacturing in India under the Budget 2024-25?
A16: Key proposals include:

o Support for labour-intensive manufacturing through new credit facili es.

o Financial support for MSMEs and food sector MSMEs to enhance exports.

o Reduc on in custom du es on manufacturing equipment like solar panels and

cri cal minerals to support domes c produc on.

Q17: How does the Union Budget plan to address climate change?
A17: The Budget introduces a taxonomy for climate finance to help a ract investments for climate
adapta on and mi ga on projects. This will support India’s goal of reducing its carbon footprint and
mee ng interna onal climate commitments.

Q18: How will the Purvodaya ini a ve benefit the Eastern states of India?
A18: Purvodaya will focus on infrastructure development, human resource ini a ves, and
economic opportunity genera on in states like Bihar, Jharkhand, and West Bengal. It aims to
transform the region into a growth engine for the country, aligning with the government's vision of
Viksit Bharat (Developed India).

Q19: What impact will the GST ra onaliza on have on businesses and consumers?
A19: The ra onaliza on of GST is expected to reduce compliance costs, simplify procedures for
businesses, and ensure a more streamlined taxa on process. This will benefit both businesses (by
reducing logis cs costs) and consumers (by ensuring fair pricing).

What changes were made to the taxa on of Long-Term Capital Gains (LTCG) in the recent Union
Budget 2024?

Answer:
In the Union Budget 2024, the government proposed an increase in the tax exemp on limit for LTCG
on listed equi es. Currently, LTCG on listed equity shares and equity mutual funds above ₹1 lakh is
taxed at 10%. The government announced an increase in the threshold for exemp on to ₹2 lakh.
This means that taxpayers can now benefit from LTCG tax exemp on on gains up to ₹2 lakh, before
they are taxed at 10%.

Has the exemp on on LTCG tax for listed equity been extended in the Budget 2024?

Answer:
No, the exemp on for LTCG on listed equi es remains as is — i.e., it is s ll available for equity shares
or equity-oriented mutual funds if held for more than one year. However, the Budget 2024 did
propose a higher exemp on limit of ₹2 lakh, beyond which gains will be taxed at 10% (with no
indexa on benefit).
What is the impact of the Budget 2024 on the tax treatment of gains from the sale of unlisted
shares?

Answer:
In Budget 2024, the government proposed a new tax regime for unlisted shares. LTCG from the sale
of unlisted shares held for more than 2 years will now be subject to tax at 20% with indexa on
benefits, rather than the earlier rate of 10%. This change aims to bring uniformity in the tax
treatment of gains from both listed and unlisted securi es.

What changes were made to the deduc ons available under Sec on 80C in the Budget 2024?

Answer:
In the Union Budget 2024, there were no direct changes to the Sec on 80C deduc on limit, which is
s ll capped at ₹1.5 lakh. However, the government introduced new savings schemes that are eligible
for deduc ons under this sec on, par cularly focused on green investments, such as green bonds
and other environmentally sustainable ini a ves.

Did the Budget 2024 introduce any changes in the taxa on of dividend income?

Answer:
Yes, the Budget 2024 introduced a proposal to reduce the tax burden on dividend income. The
government announced that dividend income from domes c companies will be taxed at a lower
rate of 10% for individual taxpayers earning above ₹10 lakh, down from the previous rate of 20%.
This reduc on is aimed at promo ng the growth of the dividend-paying sector.

Has the government made any amendments regarding the taxability of Virtual Digital Assets
(VDAs) in the Budget 2024?

Answer:
Yes, the Budget 2024 clarified and expanded on the tax treatment of Virtual Digital Assets (VDAs).
The government proposed an addi onal 1% TDS (Tax Deducted at Source) on VDA transac ons,
including those related to cryptocurrency trading. Moreover, the scope of taxable events was
broadened to cover staking and airdrops. This aims to bring more transparency and increase tax
compliance in the growing VDA sector.

What changes were made to the taxa on of income from business and profession in Budget 2024?

Answer:
In Budget 2024, the government introduced a new concessional tax regime for small businesses
with a turnover of less than ₹5 crore. Under this regime, the government proposed reducing the tax
rate from 30% to 25% for small business owners, provided they meet certain condi ons such as
compliance with digital tax filing. The intent is to encourage digitaliza on and formaliza on of small
businesses in India.

What amendments were introduced for the taxa on of senior ci zens in the Budget 2024?

Answer:
In the Budget 2024, the government announced that senior ci zens (aged 75 and above) who have
only pension and interest income will be eligible for a higher exemp on limit of ₹3 lakh. Addi onally,
senior ci zens are exempt from filing income tax returns if their total income is only from pension
or interest, and it is below the exemp on limit.

Has the government made any changes to the tax treatment of housing sector investments in
Budget 2024?

Answer:
Yes, the Budget 2024 introduced a proposal to extend the tax holiday for affordable housing
projects by one more year, ll March 2025. The deduc on under Sec on 80-IBA will con nue for
developers of affordable housing who complete the projects by March 2025. Addi onally, the
government has proposed to allow a higher interest deduc on for home loan borrowers, specifically
targe ng first- me home buyers.

How does the Budget 2024 address the tax treatment of income earned by NRIs (Non-Resident
Indians)?

Answer:
In Budget 2024, the government introduced a proposal to simplify the taxa on of NRI income. It
was announced that NRI tax residents will now be taxed only on their India-sourced income and
income earned abroad will not be subject to Indian tax laws, provided they meet certain condi ons.
Addi onally, the benefits under the double tax avoidance agreements (DTAA) have been enhanced
to reduce tax burdens on NRIs, encouraging more investment from abroad.