BonnieKoontz at 18:15, 16 June 2025

2025-06-16T18:15:35Z

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{{Short description|Government budget}}
{{Use dmy dates|date=July 2024}}
{{Use Indian English|date=July 2024}}
{{Infobox government budget
|title = [[Union Budget of India]]
|presented = 23 July 2024
|parliament = [[18th Lok Sabha|18th]] ([[Lok Sabha]])
|debt = 57.1% of [[GDP]]
|deficit = 4.9% of [[GDP]](Target)
|surplus =
|debt_payment =
|tax_cut = Numerous
|spending =
|Total_Expenditures = {{INRConvert|48.21|t|year=2024|to=USD}}
|Total_Revenue = {{INRConvert|31.29|t|year=2024|to=USD}}
|chancellor =
|treasurer =
|total revenue =
|minister = [[Nirmala Sitharaman]]
|passed =
|submitted_to = [[Parliament of India]]
|year = 2024
|url = {{URL|https://www.indiabudget.gov.in/}}
|government=[[Third Modi ministry]]|party = [[Bharatiya Janata Party]]
|date_submitted = 23 July 2024
|submitter = [[Nirmala Sitharaman]]<br />([[Finance Minister of India|Minister of Finance]])
|caption = [[Emblem of India]]
|imagesize = 100px
|image = Emblem_of_India.svg
|next_year = 2025
|next_budget = 2025 Union budget of India
|previous_year = 2024 (Interim)
|previous_budget = 2024 Interim-Union budget of India
|country = India
|gdp = 3.937 Trillion
|bill = [https://www.indiabudget.gov.in/budget2024-25/doc/AFS/allafs.pdf Annual Financial Statement of the Central Government for the year 2024{{ndash}}25]<br /> [https://www.indiabudget.gov.in/budget2024-25/doc/Finance_Bill.pdf The Finance Bill, 2024]
|bill_link=}}
The '''2024 Union Budget of India<ref>{{cite web |last1=vishal |first1=raval |title=union-budget-2024-date-time-and-key-highlights |url=https://www.bestnewsreport.com/union-budget-2024-date-time-and-key-highlights |website=bestnewsreport.com |access-date=25 July 2024}}</ref>''' was presented by Finance Minister, [[Nirmala Sitharaman]] on 23 July 2024. This was the first budget of [[Narendra Modi]] led [[National Democratic Alliance (India)|NDA government]]'s [[Third Modi ministry|third term]].<ref>{{Cite web |title=Budget 2024 LIVE Updates: Nirmala Sitharaman's Mega Jobs, Tax Announcements In Union Budget |url=https://www.ndtv.com/india-news/union-budget-2024-live-budget-2024-india-budget-union-budget-2024-date-nirmala-sitharaman-finance-minister-6166100 |access-date=2024-07-23 |website=NDTV.com}}</ref>

== History ==
The Union Budget is the annual financial report of India; an estimate of [[income]] and [[Expense|expenditure]] of the government on a periodical basis. As per Article 112 of the [[Constitution of India|Indian Constitution]], it is a compulsory task of the government.<ref name=":1">{{Cite news |title=Budget 2020 |url=https://www.business-standard.com/budget |url-status=live |archive-url=https://web.archive.org/web/20200113120322/https://www.business-standard.com/budget |archive-date=13 January 2020 |access-date=2020-01-13 |work=Business Standard India}}</ref> The first budget of India was presented on 18 February 1860 by Scotsman James Wilson.<ref>{{Cite web |date=31 January 2020 |title=Budget 2020: James Wilson, the man who brought budget, income tax to India |url=https://www.businesstoday.in/union-budget-2020/news/budget-2020-james-wilson-the-man-who-brought-budget-income-tax-to-india/story/395075.html |access-date=2020-02-03 |website=www.businesstoday.in |language=en}}</ref> The first Union Budget of Independent India was presented by [[R. K. Shanmukham Chetty]] on 26 November 1947.<ref>{{Cite web |title=First Union Budget, November 1947: The crying concern was to dress wounds of uprooted humanity |url=https://www.telegraphindia.com/india/the-first-union-budget-of-india-in-november-1947-tried-to-deal-with-aftermaths-of-the-partition/cid/1741154 |access-date=2020-02-03 |website=www.telegraphindia.com |language=en}}</ref>

== Tax changes ==

=== Revised income tax slabs ===
The income tax (IT) slabs have been revised under the new income tax regime.<ref>{{Cite web |date=2024-07-24 |title=Income Tax Slabs Rate 2024-25 Highlights: New Tax Regime made more attractive for small taxpayers with revised tax slabs, higher Standard Deduction {{!}} No changes in Old Tax Regime |url=https://www.financialexpress.com/budget/income-tax-slab-rates-fy-2024-2025-live-updates-new-income-tax-regime-income-tax-budget-for-salaried-person-senior-citizen-3561494/ |access-date=2024-07-25 |website=Financialexpress |language=en}}</ref> The updated tax rates are as follows:
{| class="wikitable"
!Tax Rate
!Slab before budget
!Slab after budget
|-
|Nil
|Up to Rs 3 lakh
|Up to Rs 3 lakh
|-
|5%
|Rs 3 lakh to Rs 6 lakh
|Rs 3 lakh to Rs 7 lakh
|-
|10%
|Rs 6 lakh to Rs 9 lakh
|Rs 7 lakh to Rs 10 lakh
|-
|15%
|Rs 9 lakh to Rs 12 lakh
|Rs 10 lakh to Rs 12 lakh
|-
|20%
|Rs 12 lakh to Rs 15 lakh
|Rs 12 lakh to Rs 15 lakh
|-
|30%
|Above Rs 15 lakh
|Above Rs 15 lakh
|}
Standard deduction has been increased from 50,000 to 75,000. [[Ernst & Young]] estimates that, following standard tax deduction polices, income of upto 7.75 lakh is extempted from income tax after introduction of the increase in standard deduction.<ref>{{Cite web |date=2024-07-23 |title=New tax regime changes explained: Income up to Rs 7.75 lakh exempt from tax, Rs 17,500 savings |url=https://www.indiatoday.in/business/budget/story/budget-2024-income-up-to-rs-775-lakh-exempt-from-tax-under-new-regime-2570812-2024-07-23 |access-date=2024-07-25 |website=India Today |language=en}}</ref>

=== Angel tax ===
The government has abolished the "angel tax," a levy that was introduced in the [[2012 Union budget of India|Finance Act of 2012]]. This tax applied to investments received by unlisted companies that exceeded the fair market value of their shares, often affecting start-ups and early-stage companies.<ref>{{Cite web |date=2024-07-23 |title=What is 'Angel tax' that was scrapped in Budget 2024 |url=https://www.indiatoday.in/business/budget/story/budget-2024-announcement-angel-tax-removed-startups-investors-benefit-2570748-2024-07-23 |access-date=2024-07-25 |website=India Today |language=en}}</ref>

=== Capital gains tax ===
The capital gains tax structure has also undergone changes:

* '''Short-Term Capital Gains (STCG):''' The tax rate on short-term capital gains from shares, mutual funds, and real estate has been increased from 15% to 20%.<ref>{{Cite news |title=India Stocks Decline as Capital Gains Tax in Modi's Budget Spooks Investors |url=https://www.bloomberg.com/news/live-blog/2024-07-23/india-budget-presentation |access-date=2024-07-25 |work=Bloomberg.com |language=en}}</ref>
* '''Long-Term Capital Gains (LTCG):''' The tax rate on long-term capital gains has been set at 12.5%. Additionally, the exemption limit for long-term capital gains has been raised from ₹1 lakh to ₹1.25 lakh.<ref>{{Cite news |date=2024-07-23 |title=India Raises Taxes to Curb Retail Frenzy in Equities Trading |url=https://www.bloomberg.com/news/articles/2024-07-23/india-to-hike-capital-gains-tax-in-setback-for-stock-market-boom |access-date=2024-07-25 |work=Bloomberg.com |language=en}}</ref>

=== Tax Deducted at Source ===
The government has proposed a reduction in the rate of Tax Deducted at Source (TDS) for various types of payments. Specifically:

* The TDS rate for insurance commission, life insurance policy payments, rent payments, and commission or brokerage payments is proposed to be decreased from 5% to 2%.
* The TDS rate on payments made by e-commerce operators to e-commerce participants for the sale of goods or services is set to be reduced from 1% to 0.1%.

The Secretary of Revenue, Sanjay Malhotra said that the decrease in TDS is aimed at simplifying TDS compliance.<ref>{{Cite web |date=2024-07-24 |title=Budget Verdict {{!}} India aims to simplify TDS compliance, says revenue secretary Sanjay Malhotra - CNBC TV18 |url=https://www.cnbctv18.com/economy/budget-2024-india-aims-to-simplify-tds-compliance-says-revenue-secretary-sanjay-malhotra-19448719.htm |access-date=2024-07-25 |website=CNBCTV18 |language=en}}</ref>

== Ministerial allocations of total expenditure ==
The total expenditure, encompassing both revenue and capital outlays, was distributed among various ministries. The Finance Ministry received the largest share at 38.5%, while the Defence Ministry held the second position with an allocation of 12.9%.<ref>{{Cite web |date= |title=India Budget |url=https://www.indiabudget.gov.in/doc/eb/allsbe.xls |website=indiabudget.gov.in}}</ref>
{| class="wikitable"
!Ministry
!Total Expenditure ('Crores)
!Total Expenditure %
|-
|Ministry of Finance
|₹ 1,858,159
|38.547%
|-
|Ministry of Defence
|₹ 621,941
|12.902%
|-
|Ministry of Road Transport and Highways
|₹ 278,000
|5.767%
|-
|Ministry of Railways
|₹ 255,393
|5.298%
|-
|Ministry of Consumer Affairs, Food and Public Distribution
|₹ 223,323
|4.633%
|-
|Ministry of Home Affairs
|₹ 219,643
|4.556%
|-
|Ministry of Rural Development
|₹ 180,233
|3.739%
|-
|Ministry of Chemicals and Fertilisers
|₹ 168,500
|3.495%
|-
|Ministry of Communications
|₹ 137,294
|2.848%
|-
|Ministry of Agriculture and Farmers Welfare
|₹ 132,470
|2.748%
|-
|Ministry of Education
|₹ 120,628
|2.502%
|-
|Ministry of Jal Shakti
|₹ 98,714
|2.048%
|-
|Ministry of Health and Family Welfare
|₹ 90,959
|1.887%
|-
|Ministry of Housing and Urban Affairs
|₹ 82,577
|1.713%
|-
|Ministry of Women and Child Development
|₹ 26,092
|0.541%
|-
|Department of Atomic Energy
|₹ 24,969
|0.518%
|-
|Ministry of Labour and Employment
|₹ 22,531
|0.467%
|-
|Ministry of External Affairs
|₹ 22,155
|0.460%
|-
|Ministry of Micro, Small and Medium Enterprises
|₹ 22,138
|0.459%
|-
|Ministry of Electronics and Information Technology
|₹ 21,937
|0.455%
|-
|Ministry of Power
|₹ 20,502
|0.425%
|-
|Ministry of New and Renewable Energy
|₹ 19,100
|0.396%
|-
|Ministry of Science and Technology
|₹ 16,628
|0.345%
|-
|Ministry of Petroleum and Natural Gas
|₹ 15,930
|0.330%
|-
|Ministry of Social Justice and Empowerment
|₹ 14,225
|0.295%
|-
|Department of Space
|₹ 13,043
|0.271%
|-
|Ministry of Tribal Affairs
|₹ 13,000
|0.270%
|-
|Ministry of Commerce and Industry
|₹ 11,469
|0.238%
|-
|Ministry of Heavy Industries
|₹ 7,242
|0.150%
|-
|Ministry of Fisheries, Animal Husbandry and Dairying
|₹ 7,138
|0.148%
|-
|Ministry of Law and Justice
|₹ 6,788
|0.141%
|-
|Ministry of Development of North Eastern Region
|₹ 5,900
|0.122%
|-
|Ministry of Statistics and Programme Implementation
|₹ 5,454
|0.113%
|-
|Ministry of Skill Development and Entrepreneurship
|₹ 4,520
|0.094%
|-
|Ministry of Textiles
|₹ 4,417
|0.092%
|-
|Ministry of Information and Broadcasting
|₹ 4,343
|0.090%
|-
|Ministry of AYUSH
|₹ 3,712
|0.077%
|-
|Ministry of Youth Affairs and Sports
|₹ 3,442
|0.071%
|-
|Ministry of Environment, Forests and Climate Change
|₹ 3,330
|0.069%
|-
|Ministry of Food Processing Industries
|₹ 3,290
|0.068%
|-
|Ministry of Culture
|₹ 3,261
|0.068%
|-
|Ministry of Minority Affairs
|₹ 3,183
|0.066%
|-
|Ministry of Earth Sciences
|₹ 3,065
|0.064%
|-
|Ministry of Corporate Affairs
|₹ 2,667
|0.055%
|-
|Ministry of Tourism
|₹ 2,480
|0.051%
|-
|Ministry of Personnel, Public Grievances and Pensions
|₹ 2,380
|0.049%
|-
|Ministry of Ports, Shipping and Waterways
|₹ 2,377
|0.049%
|-
|Ministry of Civil Aviation
|₹ 2,357
|0.049%
|-
|Ministry of Mines
|₹ 1,941
|0.040%
|-
|The President, Parliament, Union Public Service Commission and the Secretariat of the Vice President
|₹ 1,885
|0.039%
|-
|Ministry of Panchayati Raj
|₹ 1,184
|0.025%
|-
|Ministry of Cooperation
|₹ 1,183
|0.025%
|-
|Ministry of Planning
|₹ 837
|0.017%
|-
|Ministry of Steel
|₹ 326
|0.007%
|-
|Ministry of Coal
|₹ 193
|0.004%
|-
|Ministry of Parliamentary Affairs
|₹ 64
|0.001%
|-
|'''Total'''
|'''₹ 4,820,512'''
|'''100%'''
|}

== See also ==

* [[Union budget of India]]
* [[2024 Interim-Union budget of India]]

== References ==
{{reflist}}

== External links ==
* [https://www.business-standard.com/budget/podcast/budget-2024-expectations-likely-announcements-by-sitharaman-on-july-5-119061400418_1.html "Budget 2024: Expectations, likely announcements by Sitharaman on 5 July"]
* [https://www.indiatoday.in/budget-2024/personal-finance/story/budget-2024-follow-these-simple-steps-to-reduce-your-taxable-income-under-new-rules-1549329-2024-06-15 "Budget 2024: Want to reduce your tax outgo?"]
{{Union budget of India}}
{{Economy of India}}

[[Category:Union budgets of India]]
[[Category:2024 in Indian economy]]

2024 Union budget of India - Revision history

BonnieKoontz at 18:15, 16 June 2025