Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 on July 23, marking a significant event for the Indian economy, particularly focusing on middle-class relief, infrastructure development, and housing initiatives.
Middle-Class Tax Relief
One of the primary focuses of the Budget 2024 is providing relief to the middle class. The government plans to introduce tax concessions for those earning up to ₹12 lakh annually. Currently, individuals in the ₹9 lakh to ₹12 lakh income bracket are taxed at 15%, but this rate might be reduced, offering much-needed financial relief. Additionally, the standard deduction is expected to increase from the current ₹50,000, further easing the tax burden on salaried individuals
Housing Initiatives
The budget includes a new housing scheme aimed at helping middle-class individuals living in rented accommodations or slums to purchase or build their own homes. This initiative aligns with the government’s ‘Housing for All’ mission and is expected to have a significant impact on improving living conditions for many citizens
Infrastructure Investment
Significant investments are planned for infrastructure development, including a substantial allocation for highways in Bihar. This investment is expected to boost the cement and infrastructure sectors, driving economic growth and development
Market and Personal Finance
Changes in the taxation of capital gains are also on the agenda. Short-term capital gains (STCG) will be taxed at 20%, while long-term capital gains (LTCG) will see a tax rate of 12.5%. These adjustments aim to simplify the tax regime and encourage long-term investments. The budget also includes updates to Tax Collected at Source (TCS) and Tax Deducted at Source (TDS) norms, reflecting the government’s ongoing efforts to streamline the tax process
Overall, the Union Budget 2024 seeks to balance immediate tax relief with long-term economic growth strategies, focusing on the middle class, infrastructure development, and housing