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The Union Finance Minister, Nirmala Sitharaman has proposed the interim budget for FY 2024-25. Here are some key announcements that can impact your business.
No change in taxation
Government has kept direct and indirect taxes intact. With this, individuals having earnings up to Rs.7 lakh a year can continue to avail tax exemption under new regime.
Retired clients having SWP income through fixed income funds can opt for new tax regime to get tax exemption up to the income of Rs.7 lakh.
Rural people to have more money at their discretion
Government has provided free ration to 80 crore people and increased minimum support price for farmers. This has increased real income in the rural areas.
In fact, Jan Dhan accounts have savings of Rs.2.70 lakh crore. The government transferred Rs.34 lakh crore in these accounts through direct benefit transfer.
Also, government is focusing on creating 3 crore Lakhpati Didi working with self-help groups.
Housing for middle class
The government will launch a new scheme to provide housing to the middle income group living in rented houses, slums, chawls and unauthorized colonies. This will economically support the middle class and leave more money in their hands to invest.
Other key highlights
- Fiscal deficit target for the current financial year is capped at 5.8% of the GDP
- Government aims to reduce fiscal deficit for FY 2025-26 to 4.5% of the GDP
- Tax refund period has reduced from 94 days in 2013 to 10 days now
- Indirect taxes: compliance burden has reduced due to GST
- Govt will lay out a growth plan to achieve sustainable economic growth
