The Union Budget 2024 meets the Government’s commitment of a Viksit Bharat by focusing on expenditure towards increasing inclusivity, employment, agricultural and MSMEs.
Key highlights
- The Government has proposed review of the Income-tax Act, which was long overdue.
- The withdrawal of angel tax provisions and Equalisation Levy 2.0 are game changers.
- Rationalisation of the TDS Regime is a welcome move.
- The removal of indexation for the purpose of computing cost while calculating gains will have a significant impact on the capital gains tax regime. With the removal of buy back tax, the incidence of tax will now shift to the recipient.
- The government has reiterated its commitment to further simplify processes, rationalise GST rates and extend GST coverage to remaining sectors.
- The focus is on exempting customs duties in key sectors such as healthcare, solar, critical minerals for renewable energy and high-tech electronics. Further, there is reduction of customs duties on mobile phones, gold and precious metals, leather and textile industries.
