Union Budget 2024: Key Tax Reforms, Rural Development, and Energy Security Insights

The Union Budget 2024 has introduced several transformative measures designed to stimulate economic growth, enhance rural infrastructure, and advance energy security. This comprehensive guide explores the key announcements and their potential impacts on various sectors.

Overview of Union Budget 2024: Major Announcements and Impacts

In response to economic challenges and growth needs, Finance Minister Nirmala Sitharaman presented the Union Budget 2024, highlighting major reforms and allocations that aim to address critical areas of the economy. This budget focuses on tax reforms, rural development, energy security, and strategic investments.

Tax Reforms in Union Budget 2024: Changes to Income Tax and Corporate Tax Rates

The budget introduces significant changes in the tax regime. The new structure includes increased standard deductions and revised tax rates. Here’s the new tax slab:

• 0-3 lakh: 0%
• 3-7 lakh: 5%
• 7-10 lakh: 10%
• 10-12 lakh: 15%
• 12-15 lakh: 20%
• Above 15 lakh: 30%

Salaried employees under this regime could save up to ₹17,500 in income tax. Additionally, the corporate tax rate for foreign companies has been reduced to 25%. For further details, visit Economic Times Coverage on Budget 2024.

Rural Development Focus in Budget 2024: Infrastructure and Housing Initiatives

A substantial allocation of ₹2.66 lakh crore has been earmarked for rural development. This includes funding for new infrastructure projects and the construction of three crore additional houses under the PM Awas Yojana. Learn more about these initiatives on UpToSkills.

Energy Security and Environmental Policies: Key Highlights from the Budget

The budget places a strong emphasis on energy security with new policies and the PM Surya Ghar Muft Bijli Yojana. This initiative aims to install rooftop solar panels for one crore households, promoting environmental sustainability. Explore the details of these policies and their impact on energy security.

Support for MSMEs and Employment Opportunities: A Look at Budget Allocations

The budget provides special support for MSMEs, including enhanced Mudra loans and a new scheme to offer internships to one crore youth over the next five years. This initiative aims to boost employment and support small businesses. For more insights, check out Learn About Tax Planning.

New Customs Duties and Tax Exemptions: What You Need to Know

New customs duties have been announced, including reductions on gold, silver, and mobile phones. The STT on F&Os will be increased to 0.02% and 0.01%, respectively. Additionally, long-term capital gains will attract a tax rate of 12.5%, with an exemption limit set at ₹1.25 lakh per year. For a deeper understanding of these changes, visit Business Standard Analysis of Budget 2024.

Strategic Projects and Investments: How Budget 2024 Aims to Boost Economic Growth

The budget outlines key investments in strategic projects, including the development of temple corridors and new airports. These initiatives are designed to enhance regional development and stimulate economic growth.

Internal Links

To further explore related topics, visit Understanding Financial Management and Explore Rural Development Strategies.

Conclusion

The Union Budget 2024 is poised to impact various sectors through its comprehensive reforms and allocations. By focusing on tax reforms, rural development, energy security, and strategic investments, this budget aims to foster economic growth and address critical challenges. Businesses and individuals alike should stay informed about these changes to maximize their benefits and adapt to the evolving economic landscape.