Finance Bill 2024

• Union Budget 2024-25 theme will focus on Employment, Skilling, MSMEs, and the Middle Class
• The FM emphasises the need to focus on four causes: Gareeb, Mahilayen, Yuva and Annadata.
• Finance Minister introduces 5 schemes to facilitate employment, skilling and other opportunities for 4.1 crore youth over a period of 5 years
• Productivity and resilience in agriculture will be the key priority of our government
• Natural farming with certification and branding support to be provided to 1 crore farmers from scientific institutions and gram panchayats
• FM says the Budget identifies nine priorities. (1) productivity and resilience in agriculture (2) employment and skilling, (3) social justice, (4) manufacturing & services (5) urban development (6) energy security (7) infrastructure (8) innovation R&D (9) Next Gen reforms.
• Natural farming with certification and branding support to be provided to 1 crore farmers from scientific institutions and gram panchayats
• In the next two years, 1 crore farmers will be initiated into natural farming supported by certification and branding
• For farmers, we announce higher Minimum Support Prices (MSP) for all major crops, delivering on the promise for at least a 50% margin over cost
• We will facilitate higher participation of women in the workforce through setting up of hostels and creches
• Employment-Linked Incentive Schemes to provide a 1-month wage for first-time workforce persons newly entering into all formal sectors
• Govt. to facilitate digital crop survey in 400 districts
• Details of 6 crores farmers and their land will be brought into the farmer and land registries
• New employees registered in EPFO will receive a direct benefit transfer of one month’s salary, up to Rs. 15,000, in three installments
• Govt to provide financial support for loans up to Rs. 10 lakhs in higher education in domestic institutions
• FM introduces ‘Purvodya’: A comprehensive development plan for Eastern India, focusing on human resource development, infrastructure, and economic opportunities in Bihar, Jharkhand, West Bengal, Orissa, and Andhra Pradesh.
• FM proposes 3 schemes for Employment Linked Incentives
 Scheme A: 1-month wage for all persons newly entering the workforce in all sectors
 Scheme B: Job creation in manufacturing. 30 lakh youths to be benefitted
 Scheme C: Support to employers to cover additional employees in all sectors
• Union Budget includes road connectivity projects for the development of roadways, including a 2-way bridge over Ganga in Buxar at a cost of Rs. 26,000 crores
• Women-led development: Budget allocates over Rs. 3 lakh crores for schemes benefitting women and girls
• Allocation will be made for 3 crores additional houses under the PM Aawaas Yojana in Rural and Urban areas
• A special financial support of Rs. 15,000 crores will be provided to Andhra Pradesh
• More than 100 bank branches to be set up in north-east regions to expand banking services
• Credit guarantee scheme for buying machines for SMEs will be introduced
• Education loans of Rs. 10 lakh for students who are not eligible for any government schemes
• The Mudra loan limit will be increased to Rs. 20 lakhs from Rs. 10 lakhs for those who have successfully repaid previous loans
• New credit guarantee schemes introduced for MSMEs for providing collateral-free term loans for the purchase of machinery and equipment in the manufacturing sector
• Rental housing for dormitory-type accommodation for industrial workers will be facilitated in PPP mode
• PM Package to offer internship opportunities in 500 Top companies to 1 crore youth in next 5 years
• An integrated tech platform will be set up for improving outcomes under IBC to achieve consistency, transparency and better oversight for stakeholders
• Voluntary closure for LLPs will be done through CPACE
• IBC: Additional Tribunals will be set up for speedy debt recovery
• SIDBI to open 24 new branches to serve MSMEs clusters
• Internship allowance of Rs. 5,000 per month and one-time assistance of Rs. 6,000 will be provided to companies to cover training costs and 10% of internship costs through CSR funds
• FM announces pump storage policy to promote renewable energy
• 28,000 cases involving over Rs. 10 lakh crores have been disposed of even before admission under IBC
• IBC has resolved over 1,000 companies, resulting in a direct recovery of Rs. 3.3 lakh crore
• Housing needs of 1 crore urban poor and middle-class families to be addressed with an investment of Rs 10 lakh crore.
• Govt. retained the budget allocation of Rs. 11.11 lakh cores for capital expenditure as introduced in the interim budget
• Phase 4 of PM Gramin Sadak Yojana to be launched for 25,000 new rural areas as they become eligible on population parameter
• The Pradhan Mantri Suryaghar Muft Bijli Yojana has been launched to install rooftop solar panels to provide free electricity up to 300 units monthly to 1 crore households.
• MSMEs: The turnover threshold for buyers for mandatory onboarding on the TREDS platform will be reduced from Rs 500 crores to Rs 250 crores.
• Venture Capital Fund of Rs. 1,000 crores will be set up for expanding space economy in next 10 years
• Government to aid flood-affected states like Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim with Flood Management and Development Support, including Financial Backing for Flood Control Projects
• E-commerce export hubs to be set up in PPP mode to enable MSMEs and traditional artisans to sell their products in international markets
• Land records to be digitalised with GIS mapping and an IT-based system for maintaining the records
• NPS Vatsalaya Scheme will be started to allow parents to contribute for minors

Indirect Taxes:
• Three more cancer medicines to be exempted from Customs Duty
• Reduction in customs duty rates on x-ray tubes, mobile phones and related parts
• BCD on Mobile and related parts reduced to 15%
• The list of capital goods used for solar panels has been extended for GST exemption
• The Customs Duty on 25 critical minerals to be fully exempt
• BCD exempted on capital goods used in manufacturing solar panels
• Customs Duty to be reduced on Gold and Silver to 6% and Platinum to 6.4%
• BCD to be increased on Ammonium Nitrate from 7.5% to 10%

Direct Taxes:
• Two exemption schemes under Income-tax for Charities to be merged into one
• SOPs for TDS defaults and compounding will be introduced
• Simplification of capital gains taxation will be made. There will be only 2 holding periods, 12 months & 24 months. STCG : All listed securities – 12 months; All other assets (including unlisted shares & immovable property) – 24 months.
• Short-term capital gains u/s 111A – tax rate increased from 15% to 20%. LTCG tax rate increased from 10% to 12.5% for all category of assets. No Indexation benefit will be available under LTCG. Exemption limit u/s 112A increased from Rs.1 Lakhs to Rs.1.25 Lakhs.
• FM revises monetary limits for filing appeal under Income-tax
• FM proposes to abolish the angel tax to promote start-ups
• FM proposes to cut tax rates on foreign cos. from 40% to 35%
• TDS rate on e-commerce operators is proposed to be reduced from 1% to 0.1%
• Standard Deduction in new tax regime for salaried employees to be increased to Rs. 75,000
• Increase in employer & employee contribution to NPS u/s 80CCD for non-government employees from 10% of Salary to 14% of Salary.
• Vivad se Vishwas Scheme 2024 will be launched.
• It is proposed to amend the provisos to sections 42 and 43 (Penalties) of the Black Money Act to provide that the provisions of the said sections shall not apply in respect of an asset or assets (other than immovable property) where the aggregate value of such asset or assets does not exceed twenty lakh rupees.
• Income received on buyback of shares is to be taxable in the hands of the recipient
• Credit of TCS will be allowed when deducting TDS from salary.
• STT on F&O hiked to 0.20% & 0.1%.
• Increase in standard deduction from family pension under New Tax Regime to Rs.25,000.
• Provisions of Section 56(2)(viib) i.e. where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares, if the consideration received for issue of shares exceeds the face value of such shares, the aggregate consideration received for such shares exceeding such fair market value shall be chargeable to income tax under the head “Income from other sources” shall not be applicable from A.Y. 2025-26.
• W.e.f. 1st September 2024, No notice u/s 148A can be issued beyond 5 years, if income escaping assessment amount is Rs.50 Lakhs or more.
• Reporting of income from letting out of house property under the Income from House Property & not under the Profits and gains of Business or Profession.
• Increase in limit of remuneration of working partners of a firm:
 On 1st Rs.6,00,000 of Book profit : Rs.3,00,000 or at the rate of 90% of book profit, whichever is more.
 On balance Book profit : at the rate of 60% of book profit

• New TDS Section 194T has been inserted w.e.f. 1st April 2024 for TDS @ 10% on payment of Salary, remuneration, interest, bonus or commission by partnership firm to partners where aggregate amount is more than Rs.20,000 in a financial year.

• W.e.f. 1st October 2024 TDS u/s 194-IA shall be applicable on sale of immovable property where total consideration is Rs.50 Lakhs or more, even though there is more than 1 buyer.
• Slab rate under New Tax Regime:
0 – 3 Lakh: Nil
3 – 7 Lakh: 5%
7 – 10 Lakh: 10%
10 – 11 Lakh: 15%
12 – 15 Lakh: 20%

• TDS rates rationalised as under:
 W.e.f. 01.04.2025 – Section 194D – Payment of insurance commission in case of person other than company) – 2%
 W.e.f. 01.10.2024 – Section 194D – Payment of insurance policy – 2%
 W.e.f. 01.10.2024 – Section 194H – Commission, Brokerage – 2%
 W.e.f. 01.10.2024 – Section 194-IB – Payment of rent by certain Individuals or HUF – 2%
 W.e.f. 01.10.2024 – Section 194M – Payment of certain sums by certain Individuals or HUF – 2%
 W.e.f. 01.10.2024 – Section 194-O – Payment by e-commerce operator – 0.1%
 W.e.f. 01.10.2024 – Section 194F – relating to payments on account of repurchase of units by MF or Unit Trust of India – Proposed to be omitted.

• Time limit to file correction statement in respect of TDS/ TCS statements: No correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in sub-section (3) of section 200 and statement referred to in the proviso to sub-section (3) of section 206C are respectively delivered.