Relief only for new regime taxpayers, big push for jobs

The first budget of Modi 3.0 has rewarded key NDA allies, relieved taxpayers under the new regime and focused on creating job opportunities for youngsters. Employment creation, youth skilling and the middle class were the focus of Finance Minister Nirmala Sitharaman as she presented her seventh consecutive Budget.

In her Budget speech, spanning 1 hour 40 minutes, Sitharaman announced relief for taxpayers who have opted for the new tax regime, hiking the standard deduction from Rs 50,000 to Rs 75,000.

This Budget has also revised tax slabs under the new regime. Annual income up to ₹ 3 lakh will now attract zero tax and income in the ₹ 3 lakh-7 lakh bracket will be taxed at 5 percent. The rate will be 10 percent for income between ₹ 7 lakh -10 lakh, 15 percent for ₹ 10 lakh - 12 lakh and 20 percent for ₹ 12 lakh - ₹ 15 lakh. Annual income over ₹ 15 lakh will attract 30 percent tax.

Ms Sitharaman said salaried employees can save up to ₹ 17,500 in income tax under the new tax slabs. The Budget has made no changes to the old tax regime, which a large section of professionals opt for.

Budget 2024 had a big announcement for professionals entering the workforce. Ms Sitharaman announced that the Centre will give one month's salary to those joining their first job. This amount will be provided as a Provident Fund contribution. The move, she said, will benefit 210 lakh youngsters.

First-time employees

The Finance Minister said this amount would be provided through the Direct Benefit Transfer route. First-time employees registered with EPFO will get a month's salary -- up to ₹ 15,000 -- in their PF accounts in three installments. Ms Sitharaman also announced reimbursement to employers up to ₹ 3,000 per month for two years towards their EPFO contribution for each additional employee.

Angel Tax

In a bid to boost investment and the start-up ecosystem, the government abolished the angel tax. Angel tax is levied on funds raised by startups if they exceed the fair market value of the company.

Education, Internship

For students, Nirmala Sitharaman announced loans of up to Rs 10 lakh for higher education in domestic institutions. A scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years has also been announced. In total, the Budget has allotted Rs 1.48 lakh crore for education, employment and skilling.

Mobile, Gold

Mobile phones are expected to get cheaper with the government announcing a reduction in customs duty on mobile phones, parts and chargers to 15%. The customs duties on three cancer medicines have been exempted. Moreover, the cost of imported gold, silver, leather goods, and seafood will also decrease.

Tourism

In the tourism sector, Sitharaman said the Vishnupath temple at Gaya and Mahabodhi temple in Bodhgaya would be modelled on the Kashi Vishwanath corridor. Nalanda will be developed as a tourist hotspot. She also announced support for the development of Odisha's temples and pristine beaches.

Urban Housing

Rs 10 lakh crore has been allocated for urban housing. "Under the PM Awas Yojana-Urban 2.0, the housing needs of 1 crore poor and middle-class families will be addressed with an investment of Rs 10 lakh crore. This will include central assistance of Rs 2.2 lakh crores in the next five years," she said.

Women Workforce

Women-specific skilling programmes have been announced by the government in the Budget. "Working women hostels will be set up. Higher participation of women in the workforce is to be promoted through hostels and crèches," Sitharaman said.

'Poorvodaya' scheme

Sitharaman also announced the 'Poorvodaya' scheme for all-round development of the Eastern region of the country, covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh.

Rewards For Allies

The government has announced a series of measures for the development of Andhra Pradesh and Bihar. While Rs 15,000 crore has been announced for the development of Amravati as Andhra Pradesh's capital, an outlay of Rs 26,000 crore has been proposed for various road projects in Bihar.