Скачать или смотреть Budget 2024 : Boon or curse

We’ll break down the numbers, look at the government’s key announcements, and analyze how this budget impacts YOU—the backbone of our economy, the middle class. So, grab a cup of coffee and let’s get started!"

The Union Budget 2024, was presented by Finance Minister Nirmala Sitharaman, introduced several measures impacting middle-class and salaried individuals.

Section 1: Here's a detailed breakdown and key points of budget for your review:

1. Revised Income Tax Slabs under the New Tax Regime:

The government has restructured the income tax slabs to provide relief to taxpayers opting for the new tax regime:

Nil Tax Rate: Income up to ₹3 lakh.

5% Tax Rate: Income from ₹3 lakh to ₹7 lakh.

10% Tax Rate: Income from ₹7 lakh to ₹10 lakh.

15% Tax Rate: Income from ₹10 lakh to ₹12 lakh.

20% Tax Rate: Income from ₹12 lakh to ₹15 lakh.

30% Tax Rate: Income above ₹15 lakh.


Additionally, the rebate under Section 87A has been increased, effectively exempting individuals with an annual income of up to ₹7 lakh from paying any income tax under the new regime.

2. Increase in Standard Deduction:

To further benefit salaried employees and pensioners, the standard deduction has been raised from ₹50,000 to ₹75,000 under the new tax regime.

3. Changes in Capital Gains Tax:

The budget has restructured the capital gains tax framework:

Short-Term Capital Gains (STCG): The tax rate has been increased from 15% to 20%.

Long-Term Capital Gains (LTCG): The tax rate is now set at 12.5%, with the exemption limit raised from ₹1 lakh to ₹1.25 lakh.


These adjustments aim to streamline the tax structure but have raised concerns among investors.

4. Modifications to Tax Deducted at Source (TDS):

The government has proposed reductions in TDS rates for various payments:

Insurance Commission, Life Insurance Policy Payments, Rent, and Brokerage: Reduced from 5% to 2%.

E-commerce Transactions: Reduced from 1% to 0.1%.


These changes aim to simplify compliance and increase disposable income for taxpayers.

5. Property Tax Relief:

Initially, the budget proposed a reduction in the long-term capital gains tax on real estate from 20% to 12.5%, while removing the benefit of inflation adjustment (indexation). Following public backlash, the government amended this proposal, allowing taxpayers to choose between the new rate without indexation or the old rate with indexation, providing flexibility and relief to property sellers.

6. Fiscal Deficit and Economic Growth:

The budget targets a fiscal deficit of 4.9% of GDP, down from the previous year's 5.6%, indicating a commitment to fiscal consolidation. The government anticipates nominal economic growth of 10.5%, with real growth projected between 6.5% and 7%.

Section 2: Why the Middle-Class and Salaried Individuals feel left out:

While the revised tax slabs and increased standard deduction offer some relief, concerns remain:

Limited Relief: Critics argue that the budget does not provide substantial benefits to the middle class, with no significant changes in exemptions or deductions under the old tax regime.

Increased Tax Burden on Investments: The hike in capital gains tax rates may deter individual investors, potentially impacting their investment returns.

Property Tax Adjustments: The initial proposal on real estate capital gains tax faced backlash for increasing the tax burden, leading to revisions that now offer taxpayers a choice, aiming to balance simplification with taxpayer concerns.

Section 3: What Can Be Done?

"So, what’s the solution?

1. Policy Changes: The government needs to reconsider tax exemptions and rebates, especially for the salaried class.


2. Inflation Control: Strengthen measures to reduce the prices of essentials like fuel and food.


3. Affordable Housing Schemes: More incentives for middle-class families to own homes.



As citizens, it’s our responsibility to voice these concerns. Write to your representatives, join discussions, and demand accountability."

"To sum it up, Budget 2024 is a mixed bag. While it sets the stage for long-term economic growth, the immediate concerns of the middle class seem overlooked.