Budget 2024: The first budget of Modi 3.0 has brought good news for a range of sectors, from startups and key NDA allies to taxpayers, investors, and job-seeking youngsters. Let’s delve into how different groups are benefiting from Budget 2024.
Relief for Startups and Investors
The Budget 2024 is a boon for startups and investors. The Finance Minister announced the abolition of the angel tax for all classes of investors, a move that is expected to boost investment in the startup ecosystem. Furthermore, the definition of “eligible startup” under the Startup India scheme has been extended to include entities incorporated between April 1, 2016, and March 31, 2025. This change allows more startups to benefit from the tax holiday provided under the scheme.
The budget also proposed raising the limit of exemption of capital gains on certain financial assets to ₹1.25 lakh per year. This is seen as a significant step in encouraging investment in the financial markets.
New Tax Regime Benefits Taxpayers
Taxpayers opting for the new regime have much to cheer about. The standard deduction has been increased from ₹50,000 to ₹75,000. The revised tax slabs mean that annual income up to ₹3 lakh will now be tax-free. Income between ₹3 lakh and ₹7 lakh will be taxed at 5%, ₹7 lakh to ₹10 lakh at 10%, ₹10 lakh to ₹12 lakh at 15%, ₹12 lakh to ₹15 lakh at 20%, and income over ₹15 lakh will attract a 30% tax rate. Salaried employees can save up to ₹17,500 in income tax under these new slabs.
Encouraging Employment for Youngsters
In a major push for employment, the Finance Minister announced that the Centre will provide one month’s salary as Provident Fund contribution for individuals joining their first job. This initiative is expected to benefit 210 lakh youngsters. First-time employees registered with EPFO will receive a month’s salary — up to ₹15,000 — in their PF accounts in three instalments. Additionally, employers will be reimbursed up to ₹3,000 per month for two years for each new employee added to their workforce.
Development Projects for Key States
Budget 2024 has earmarked significant projects for Bihar and Andhra Pradesh, key states that supported the BJP in forming the government. Bihar will see the development of expressways connecting Patna to Purnea and Buxar to Bhagalpur, along with another expressway linking Bodhgaya, Rajgir, Vaishali, and Darbanga. A two-lane bridge over the Ganga in Buxar district and a 2,400 MW power plant at Pirpainti in Bhagalpur were also announced.
These projects are part of the Purvodaya initiative aimed at comprehensive development in the eastern part of India, covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Boosting Startup Ecosystem
To further support the startup ecosystem, various programs like the Fund of Funds for Startups (FFS) scheme, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) have been providing capital to domestic startups at different stages of their business cycles. Currently, the DPIIT recognizes 1,17,000 registered startups under the Startup India scheme. For a startup to be eligible for incentives, its turnover should be less than ₹100 crore in any of the previous financial years.
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