Budget 2024 Highlights: The Budget 2024 has brought several changes that will impact common people, taxpayers, and savings for children. The focus is on simplifying the tax regime, promoting education and skilling, and developing rural areas and agriculture.
New Tax Regime: Rationalised and Lower Tax Rates
The new regime brought out in Budget 2024 has been brought in for rationalizing the tax structure and reducing tax liability for people. Its key features are as follows:
Reduced tax rates: The tax rates are reduced in all slabs, hence giving relief to the taxpayers.
Increase in standard deduction: Now, the standard deduction is increased and available to all taxpayers, and expense documentation is not required.
Simplification of tax slabs: There have been lesser tax slabs, with clear-cut demarcations.
Comparison of Old and New Tax Regimes
Let’s compare the old and new tax regimes in Budget 2024 Highlights:
Old Regime (2023 and Earlier)
- Up to ₹2.5 lakh: Nil
- ₹2.5 lakh – ₹5 lakh: 5%
- ₹5 lakh – ₹10 lakh: 20%
- ₹10 lakh and above: 30%
New Regime (2024 onwards)
- Up to ₹3 lakh: Nil
- ₹3 lakh – ₹7 lakh: 5%
- ₹7 lakh – ₹10 lakh: 10%
- ₹10 lakh – ₹12 lakh: 15%
- ₹12 lakh – ₹15 lakh: 20%
- Above ₹15 lakh: 30%
Benefits of New Tax Regime
Benefits will be available to the taxpayers in the new regime as under:
Lower Tax Liability: Lower tax rates along with an enhanced standard deduction lead to lower tax liability.
Easy Compliance: Simpler tax slabs, reduced rates make tax compliance easier.
Increased Disposable Income: Because of reduced tax liability, there is an increase in disposable income to taxpayers for savings, investment, or consumption.
NPS Vatsalya
Budget 2024 Highlights: A new scheme, NPS Vatsalya, has been introduced for the benefit of children. This scheme allows parents to open a National Pension System (NPS) account for their children, with a minimum annual contribution of ₹1,000.
Child Savings
The NPS Vatsalya scheme is a significant announcement for child savings, providing a secure and long-term investment option for children’s future. It’s essential to start saving early for your child’s education, marriage, and other significant life events.
Education and Skilling
The budget has allocated ₹2 trillion for youths entering the job market, focusing on education and skilling. This initiative aims to enhance employability and provide better job opportunities.
Rural Development
The budget has pledged ₹2.66 lakh crore for rural development and rural infrastructure, which will create more rural jobs and revive the rural economy.
Agriculture
The budget has allocated ₹1.52 trillion for agriculture and allied services. Initiatives like soil health cards and irrigation projects will benefit farmers.
Read More: NPS Vatsalya Scheme Set to Launch in the Next 2 Weeks
Capital Gains
Budget 2024 Highlights: The capital gains tax has been increased, which may impact investors. However, this change aims to reduce tax evasion and increase revenue.
Try This: SSY CALCULATOR
FAQ’s On Budget 2024 Highlights
What is the deal with this new tax regime that Budget 2024 has brought in?
Well, let’s just say that this new tax regime all goes for simplicity. The rate of taxes is now reduced, and a standard deduction is increased. Think of it like a nice whiff of fresh air for your wallet! Now, you’ll pay 5% tax on income between ₹3 lakh and ₹7 lakh, 10% on income between ₹7 lakh and ₹10 lakh, and so on.
How does NPS Vatsalya help in saving for the future of my kid?
NPS Vatsalya acts as a guardian to your child’s future. You may open an NPS account with them for as low as ₹1,000 annually, and be assured that their savings grows with time; it could be for their education, marriage, or any such milestone.
What has been the broad focus of Budget 2024?
Budget 2024 shall make things easier for you! Simplification of taxes, education, skilling, development of rural areas and agriculture, all these would be completed by tweaking the capital gains tax.
How would Budget 2024 impact rural development and agriculture?
Budget 2024 has truly been a whirlwind of change for Rural India. ₹2.66 lakh crore will be invested in Rural Development and Infrastructure, and this will generate jobs to give a fillip to the rural economy. The farmers will also benefit from schemes like soil health cards and irrigation projects.
What’s the story with capital gains tax?
Capital Gains Tax increased to plug evasion and increase revenue. Think of it like an evil necessary to keep things square and fair!
