Budget 2024 Expectations: What could change for taxpayers in India today (2024)

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Budget 2024 Expectations: What could change for taxpayers in India today? ›

Interim Budget 2024: Direct Tax Proposals

Budget 2024 Key Highlights LIVE: Prime Minister Narendra Modi on Saturday said that the interim budget 2024 is dedicated to the youth of the country as the government is going to spend more than ₹11 lakh crore on rail, road, and modern infrastructure.

Lowering the average tax rate on income

The effective personal tax rate is defined as the Employee National Insurance and Income Tax paid as a proportion of an individual's income. For the median earner this has fallen since 2010, and in 2024-25 will be the lowest it has been since 1975.

Tax Base in India Explained

It's basically the total value of goods, services, transactions, income or property that can be taxed. This includes everything that could potentially be subject to taxation. Knowing the tax base helps both the government and taxpayers understand how much money is available for taxes.

Since 1947, there have been a total of 73 annual budgets, 14 interim budgets and four special budgets, or mini-budgets.

Key tax cuts and reforms announced:

National Insurance Contributions: from April 6th Employee NIC will be cut by 2p from 10% to 8%, and for self-employed will be cut from 8% to 6%. Non-domicile tax status will be “abolished” and replaced by a “modern, simpler and fairer” system from April 2025.

Kerala Budget 2024 Highlights: Operation Breakthrough, a project to address flash floods in Kochi city during rains, has been allocated Rs 10 crore. Kerala Budget 2024 Highlights: The Zoological park in Thrissur will be developed to an international level with an allocation of Rs 6 crore.

Indians who pay income tax are a rare breed. In 2021-22, there were 20.9 million — or just over 2 crore — taxpayers. Population estimates for the same year pegged the Indian adult population at 943.5 million — that's 94-crore-plus Indian voters. So, taxpayers accounted for only 2.2% of the voting population.

The new tax system is safer and more straightforward, with fewer records and less potential for tax evasion fraud. However, because everyone has their unique set of deductions and exemptions, the two regimes must be compared to find the best for everyone.

Which budget is best for India? ›

Epochal Budget of 1991

Hence, it is famously known as the 'Epochal budget', according to PTI. The budget was presented at a time when India was on the verge of an economic collapse. In that year, the government significantly reduced customs duty from 220 per cent to 150 per cent and took steps to promote exports.

This comes out to be 13.04% of total Union Budget, which was presented by Finance Minister Smt Nirmala Sitharaman in Parliament on February 01, 2024. The Ministry of Defence (MoD) continues to receive the highest allocation among the Ministries.

India's fiscal deficit between April and February of FY24 stood at Rs 15.01 lakh crore, and was around 86.5 per cent of the target for the entire financial year, data showed on Thursday. The fiscal deficit in the same period a year ago stood at Rs 14.53 lakh crore. The financial year began April 1, 2023.

Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 6,96,632 crore. This is an increase of 14% over the revised estimate of 2023-24.

Washington, D.C. – Today, the Senate voted 72-24 to send the final set of bicameral, bipartisan fiscal year 2024 appropriations bills to the President's desk to be signed into law.

Interim Budget 2024 at a glance: FM allocates ₹2,500 crore for tourism-related infra development.

Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 1,35,051 crore. This is an increase of 4.3% over the revised estimate of 2023-24. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 1,04,586 crore and net borrowings of Rs 28,965 crore.