Budget 2024: Emphasis on Job Creation and Incentives for New Taxpayers, Allies

Today, Finance Minister Nirmala Sitharaman presented the first budget of Modi 3.0. The new tax regime has brought changes, including an increase in the standard deduction from Rs 50,000 to Rs 75,000 and revisions to tax slabs.

Under the new regime, the income tax rate is now zero for those earning up to Rs 3 lakh, 5 per cent for income in the Rs 3 lakh-7 lakh bracket, and increasing to 30 per cent for annual income over Rs 15 lakh. Salaried employees can save up to Rs 17,500 in income tax under the new tax slabs, but the old tax regime remains unchanged.

A significant announcement targeted at professionals entering the workforce was made in the budget for 2024. Ms Sitharaman revealed that the Centre would provide one-month’s salary as a Provident Fund contribution to those joining their first job, benefitting approximately 210 lakh youngsters.

Additionally, first-time employees registered with EPFO will receive a month’s salary in their PF accounts in three instalments, and employers can claim reimbursement towards their EPFO contribution for each additional employee. Other proposals in the budget for 2024 include raising the limit of exemption of capital gains on some financial assets to Rs 1.25 lakh per year and abolishing angel tax for all classes of investors.

The budget also earmarked key projects for Bihar and Andhra Pradesh, with Bihar seeing the development of expressways, a bridge over the Ganga, and a 2,400 MW power plant. The Purvodaya initiative for development in the eastern part of the country will be undertaken in Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

In Andhra Pradesh, infrastructure projects in Railways and roadways will be prioritised, along with an allocation of Rs 15,000 crore for the development of the state’s capital.