Union Budget 2024: Here Is Full Text of FM Nirmala Sitharaman's Speech 2024-25

/divdivnbsp;/divdivstrongIndirect Taxes/strong/divdivnbsp;/divdivI start with GST. It has decreased tax incidence on the common man; reduced compliance burden and logistics cost for trade and industry; and enhanced revenues of the central and state governments. It is a success of vast proportions. To multiply the benefits of GST, we will strive to further simplify and rationalise the tax structure and endeavour to expand it to the remaining sectors./divdivnbsp;/divdivMy proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount./divdivIn Budget 2022-23, we reduced the number of customs duty rates.nbsp;/divdivnbsp;/divdivI propose to undertake a comprehensive review of the rate structure over the next six months to rationalise and simplify it for ease of trade, removal of duty inversion and reduction of disputes./divdivnbsp;/divdivI shall now take up sector specific customs duty proposals./divdivnbsp;/divdivstrongMedicines and Medical Equipment/strong/divdivnbsp;/divdivTo provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties./divdivI also propose changes in the BCD on x-ray tubes amp; flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme, so as to synchronise them with domestic capacity addition./divdivnbsp;/divdivstrongMobile Phone and Related Parts/strong/divdivnbsp;/divdivWith a three-fold increase in domestic production and almostnbsp;100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured. In the interest of consumers, I now propose to reduce the BCD on mobile phone, mobile PCBA and mobile charger to 15 per cent./divdivnbsp;/divdivstrongCritical Minerals/strong/divdivnbsp;/divdivMinerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics. I propose tonbsp; fully exempt customs duties on 25 critical minerals and reduce BCD on two of them.nbsp; Thisnbsp; will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors.nbsp;nbsp;/divdivnbsp;/divdivstrongSolarnbsp; Energynbsp;/strong/divdivnbsp;/divdivEnergy transition is critical in the fight against climate change. To support energy transition, I propose to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. Further, in view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, I propose not to extend thenbsp; exemption of customs duties provided to them./divdivnbsp;/divdivstrongMarine products/strong/divdivnbsp;/divdivIndiarsquo;s seafood exports in the last financial year touched an all-time high of more than Rs 60,000 crore. Frozen shrimp accounted for aboutnbsp; two-thirds of these exports. Tonbsp; enhance their competitiveness, I propose to reduce BCD on certain broodstock, polychaete worms, shrimp and fish feed to 5 per cent. I also propose to exempt customs duty on various inputs for manufacture of shrimp and fish feed./divdivnbsp;/divdivstrongLeather and Textilenbsp;/strong/divdivnbsp;/divdivSimilarly, to enhance the competitiveness of exports in the leather and textile sectors, I propose to reduce BCDnbsp; on real down filling material from duck or goose. I am also making additions to the list of exempted goods for manufacture of leather and textile garments, footwear and other leather articles for export.nbsp;/divdivnbsp;/divdivTonbsp; rectify inversion in duty, I propose to reduce BCD, subject to conditions, on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn from 7.5 to 5 per cent./divdivnbsp;/divdivFurthermore, the export duty structure on raw hides, skins and leather is proposed to be simplified and rationalized./divdivnbsp;/divdivstrongPrecious Metals/strong/divdivnbsp;/divdivTo enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent.nbsp;/divdivnbsp;/divdivstrongOther Metals/strong/divdivnbsp;/divdivSteel and copper are important raw materials. To reduce their cost of production,nbsp; I propose to remove the BCD on ferro nickel and blister copper. I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap./divdivnbsp;/divdivstrongElectronicsnbsp;/strong/divdivnbsp;/divdivTo increase value addition in the domestic electronics industry,nbsp;I propose to remove the BCD, subject to conditions, on oxygen free copper for manufacture of resistors. I also propose to exempt certain parts for manufacture of connectors./divdivnbsp;/divdivstrongChemicals and Petrochemicalsnbsp;/strong/divdivnbsp;/divdivTo support existing and new capacities in the pipeline, I propose to increase the BCD on ammonium nitratenbsp; from 7.5 to 10 per cent./divdivnbsp;/divdivstrongPlastics/strong/divdivnbsp;/divdivPVC flex banners are non-biodegradable and hazardous for environment and health. To curb their imports, I propose to raise the BCD on them from 10 to 25 per cent./divdivnbsp;/divdivstrongTelecommunication Equipment/strong/divdivnbsp;/divdivTo incentivise domestic manufacturing, I propose to increase the BCDnbsp; from 10 to 15 per cent on PCBA of specified telecom equipment.nbsp;/divdivnbsp;/divdivstrongTrade facilitation/strong/divdivnbsp;/divdivTo promote domestic aviation and boat amp; ship MRO, I propose tonbsp; extend the period fornbsp; export of goods imported for repairs from six months to one year. In the same vein, I propose to extend the time-limit for re-import of goods for repairs under warranty from three to five years./divdivnbsp;/divdivstrongDirect Taxes/strong/divdivnbsp;/divdivWe will continue our efforts to simplify taxes, improve tax payer services, provide tax certainty and reduce litigation while enhancing revenues for funding the development and welfare schemes of the government./divdivnbsp;/divdivIt has been our endeavour to simplify taxation. We have taken a number of measures in the last few years including introduction of simplified tax regimes without exemptions and deductions for corporate tax and personal income tax. This has been appreciated by tax payers. 58 per cent of corporate tax came from the simplified tax regime in financial year 2022-23. Similarly, as per data available till now for the last fiscal, more than two-thirds have availed the new personal income tax regime./divdivnbsp;/divdivstrongComprehensive Review of the Income-tax Act, 1961/strong/divdivnbsp;/divdivI am now announcing a comprehensive review of the Income-tax Act, 1961. The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the tax payers. It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months./divdivA beginning is being made in the Finance Bill by simplifying the tax regime for charities, TDS rate structure, provisions for reassessment and search provisions and capital gains taxation./divdivnbsp;/divdivstrongSimplification for Charities and of TDS/strong/divdivnbsp;/divdivThe two tax exemption regimes for charities are proposed to be merged into one. The 5 per cent TDS rate on many payments is being merged into the 2 per cent TDS rate and the 20 per cent TDS rate on repurchase of units by mutual funds or UTI is being withdrawn. TDS rate on e-commerce operators is proposed to be reduced from one to 0.1 per cent. Moreover, credit of TCS is proposed to be given in the TDS to be deducted on salary. Further, I propose to decriminalize delay for payment of TDS up to the due date of filing statement for the same. I also plan to provide a standard operating procedure for TDS defaults and simplify and rationalise the compounding guidelines for such defaults./divdivnbsp;/divdivstrongSimplification of Reassessment/strong/divdivnbsp;/divdivI propose to thoroughly simplify the provisions for reopening and reassessment. An assessment hereinafter can be reopened beyond three years from the end of the assessment year only if the escaped income isnbsp;/divdivRs 50 lakh or more,nbsp; up to a maximum period of five years from the end of the assessment year. Even in search cases, a time limit of six years before the year of search, as against the existing time limit of ten years, is proposed.nbsp; This will reduce tax-uncertainty and disputes./divdivnbsp;/divdivstrongSimplification and Rationalisation of Capital Gainsnbsp;/strong/divdivnbsp;/divdivCapital gains taxation is also proposed to be hugely simplified.nbsp;/divdivnbsp;/divdivShort term gains on certain financial assets shall henceforth attract a tax rate of 20 per cent, while that on all other financial assets and allnbsp;non-financial assets shall continue to attract the applicable tax rate./divdivnbsp;/divdivLong term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to Rs 1.25 lakh per year./divdivnbsp;/divdivListed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.nbsp;/divdivnbsp;/divdivUnlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates./divdivnbsp;/divdivstrongTax Payer Services/strong/divdivnbsp;/divdivAll the major tax payer services under GST and most services under Customs and Income Tax have been digitalised. All remaining services of Customs and Income Tax including rectification and order giving effect to appellate orders shall be digitalized and made paper-less over the next two years./divdivnbsp;/divdivstrongLitigation and Appeals/strong/divdivnbsp;/divdivWhile our concerted efforts to reduce pendency of appeals at various appellate fora are beginning to show good results, it will continue to engage our highest attention./divdivnbsp;/divdivTo dispose of the backlog of first appeals, I plan to deploy more officersnbsp; to hear and decide such appeals, especially those with large tax effect.nbsp;/divdivnbsp;/divdivFor resolution of certain income tax disputes pending in appeal, I am also proposing Vivad Se Vishwas Scheme, 2024.nbsp;/divdivFurther, I propose to increase monetary limits for filing appeals related to direct taxes, excise and service tax in the Tax Tribunals, High Courts and Supreme Court to Rsnbsp; 60 lakh, Rs 2 crore and Rs 5 crore respectively./divdivnbsp;/divdivWith a view to reduce litigation and provide certainty in international taxation, we will expand the scope of safe harbour rules and make them more attractive. We will also streamline the transfer pricing assessment procedure./divdivnbsp;/divdivstrongEmployment and Investment/strong/divdivnbsp;/divdivI have a few proposals to promote investment and foster employment.nbsp;/divdivnbsp;/divdivFirst of all, to bolster the Indian start-up eco-system, boost the entrepreneurial spirit and support innovation, I propose to abolish the so-called angel tax for all classes of investors./divdivnbsp;/divdivSecond, there is tremendous potential for cruise tourism in India. To give a fillip to this employment generating industry, I am proposing a simpler tax regime for foreign shipping companies operating domestic cruises in the country./divdivnbsp;/divdivThird, India is a world leader in the diamond cutting and polishing industry, which employs a large number of skilled workers. To further promote the development of this sector, we would provide for safe harbour rates for foreign mining companies selling raw diamonds in the country./divdivnbsp;/divdivFourth, to attract foreign capital for our development needs,nbsp;I propose to reduce the corporate tax rate on foreign companies from 40 to 35 per cent.nbsp;/divdivnbsp;/divdivstrongDeepening the tax base/strong/divdivnbsp;/divdivI have a couple of proposals for deepening the tax base. First, Security Transactions Tax on futures and options of securities is proposed to be increased to 0.02 per cent and 0.1 per cent respectively. Second, for reasons of equity, I propose to tax income received on buy back of shares in the hands of the recipient.nbsp;/divdivnbsp;/divdivstrongOthers/strong/divdivnbsp;/divdivTo improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased from 10 to 14 per cent of the employeersquo;s salary. Similarly, deduction of this expenditure up to 14 per cent of salary from the income ofnbsp; employees in private sector, public sector banks and undertakings, opting for the new tax regime, is proposed to be provided./divdivnbsp;/divdivIndian professionals working in multinationals get ESOPs and invest in social security schemes and other movable assets abroad. Non-reporting of such small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to Rs 20 lakh is proposed to be de-penalised./divdivnbsp;/divdivOther major proposals in the Finance Bill relate to:/divdivnbsp;/divulliWithdrawal of equalization levy of 2 per cent;/liliExpansion of tax benefits to certain funds and entities in IFSCs; and/liliimmunity from penalty and prosecution to benamidar on full and true disclosure so as to improve conviction under the Benami Transactions (Prohibition) Act, 1988./li/uldivstrongPersonal Income Tax/strong/divdivnbsp;/divulliComing to Personal Income Tax Rates, I have two announcements to make for those opting for the new tax regime. First, the standard deduction for salaried employees is proposed to be increased from Rs50,000/- tonbsp;Rs75,000/-. Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000/- to Rs 25,000/-. This will provide relief to about four crore salaried individuals and pensioners./liliSecond, in the new tax regime, the tax rate structure is proposednbsp; to be revised, as follows:br /img src=https://feeds.abplive.com/onecms/images/uploaded-images/2024/07/23/d3d2d57e60b6a7f79e6a356079f2579f17217274508901061_original.png //liliAs a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500/- in income tax./liliApart from these, I am also making some other changes as given in the annexure./liliAs a result of these proposals, revenue of about Rs 37,000 crore ndash;nbsp;/liliRs 29,000 crore in direct taxes and Rs 8,000 crore in indirect taxes ndash; will be forgone while revenue of about Rs 30,000 crore rupees will be additionally mobilized. Thus, the total revenue forgone is about Rs 7,000 crore annually./li/uldivMr. Speaker Sir, with this, I commend the budget to this august House.nbsp;/divdivJai Hind./div]>

Union Budget 2024-25: Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in Parliament on Tuesday, July 13. This was the first budget of Prime Minister Narendra Modi-led government's third term, and it focused on Gareeb, women, youth, and farmers. In her budget speech, Sitharaman announced plans to raise spending, create jobs, and provide relief to the middle class.

The government also introduced changes on the taxation front. It also hiked the securities transaction tax (STT) but reduced the short-term capital gains and long-term capital gains tax. On the personal income tax front, Sitharaman announced some tax slab changes in the New tax regime.

With the budget, Sitharaman also extended ‘special help’ to Bihar and Andhra Pradesh, addressing the aspirations of key National Democratic Alliance (NDA) allies — the Telugu Desam Party (TDP) and the Janata Dal-United (JDU). In the budget, Rs 15,000 crore have been allocated for Andhra Pradesh’s development in the current financial year, with assurances of further funds in subsequent years. FM also pledged grants for the backward regions of Andhra, along with a special mention of the Polavaram Dam project.

For Bihar, Sitharaman revealed plans for new airports, medical colleges, and sports infrastructure and assured the state government that their requests to multilateral banks would be fast-tracked. She also earmarked Rs 26,000 crore for highways in Bihar and announced a 2,400 MW power plant and an industri.