- FISCAL DEFICIT REDUCTION
FY25 fiscal deficit have been projected at 4.9% of GDP as against 5.1% in Interim Budget. Further,
government is committed to reduce deficit below 4.5%.
* Expenditure for FY25 seen at 48.21 lakh crore and Receipts for FY25 32.07 lakh crore.
* FY25 Fiscal Deficit projected at 4.9% of GDP versus 5.1% in Interim Budget with a aim to
reach a fiscal deficit of below 4.5% next year.
2. SUPPORT TO MSMEs
New mechanism for facilitating continuation of bank credit to MSMEs during their stress
period. Further, Limit of Mudra loans increased from ₹10 lakh to ₹20 lakh.
* Turnover threshold of buyers for mandatory onboarding on TReDS platform to be reduced
from ₹500 crore to ₹250 crore.
* Financial support for 50 multi-product food irradiation units in MSME sector.
* E-Commerce Export Hubs to be set up in PPP mode to enable MSMEs and traditional artisans
to sell their products in international markets.
3. DEVELOPMENT OF INDUSTRIAL PARKS
* Investment-ready “plug and play” industrial parks to be developed in or near 100 cities.
* 12 industrial parks sanctioned under National Industrial Corridor Development
Programme.
* Critical Mineral Mission to be set up for domestic production, recycling of critical minerals,
& overseas acquisition of critical mineral assets
4. SKILLING AND INTERNSHIP PROGRAMMES
* 1,000 ITIs to be upgraded in hub & spoke arrangements in 5 years with focus on outcome
and quality in collaboration with states and industry.
* 1 crore youth to be skilled by India’s top companies in five years. Further, 12-month Prime
Minister’s Internship with monthly allowance of ₹5,000 to be spend by companies from their
CSR funds.
5. TAXES ON CAPITAL GAIN AND TDS/TCS REFORMS
* Short term gains tax on specified financial assets raised to 20% from 15%, while that on all
other financial assets and non-financial assets shall continue to attract the applicable tax rate.
Further, Long term gains tax on all financial and non-financial assets raised to 12.5%. Also,
the limit of exemption of capital gains on certain listed financial assets has been increased
from ₹1 lakh to ₹1.25 lakh per year.
* TDS rate on e-commerce operators reduced to 0.1% from 1%. Delays in payments of TDS to
be decriminalized upto their filing due date and the process of reassessment and reopening
of returns to be simplified.
* Payments made by a firm to its partner shall be subject to TDS at 10% for aggregate amounts
more than ₹20,000 in a financial year.
* TCS Levy of 1% on notified luxury goods of value exceeding ₹10 lakhs.
* TDS levy on interest exceeding ₹10,000 on Floating Rate Savings (Taxable) Bonds (FRSB)
2020 or any other notified security of the Central or State Governments
6. EMPLOYEE LINKED INCENTIVE SCHEMES
* First-time enrolments in EPFO to receive one month’s wage upon entering the workforce
in all formal sectors. A direct benefit transfer (DBT) of one month’s salary up to ₹15,000
will be provided in 3 instalments.
* Incentives to be provided to both employees and employers as per their EPFO
contributions for the first 4 years of employment.
* Reimbursement to employers up to ₹3,000 per month for 2 years towards their EPFO
contribution for each additional employee. The eligibility limit for this will be a salary of ₹1
lakh per month.
7. REDUCTION/EXEMPTION IN CUSTOM DUTIES
* Customs duties on gold, silver reduced to 6%, platinum to 6.4% and Lithium, Copper, Cobalt
have been exempted from Custom Duty. Duty has also been exempted on manufacturing of
connectors and Oxygen-fused copper.
* 3 medicines also fully exempted from custom duty for cancer patients.
8. REVISION IN TAX STRUCTURE UNDER THE NEW REGIME AND INCOME TAX REFORMS
Income Slab Applicable Tax Rate
₹Upto 3 lakh Nil
₹3-7 lakh 5%
₹7-10 lakh 10%
₹10-12 lakh 15%
₹15 lakh and above 30%
* Withdrawal of the 2% equalisation levy. Further, standard deduction for salaried
employees will be hiked to ₹75,000, from ₹50,000 under new income tax regime in FY25.
* Similarly, deduction for family pension for pensioners will be enhanced from ₹15,000 to
₹25,000
* The deduction limit increased to 14% from 10% for employers’ contribution for the
National Pension System (NPS).
* Reduction in the rate of income-tax chargeable on income of foreign company (other than
that chargeable at special rates) from 40% to 35%.
9. TAXES ON BUYBACK OF SHARES, STT ON F&O
The income from buy-back of shares by companies be chargeable in the hands of the
recipient investor as dividend, instead of the current regime of additional income-tax in the
hands of the company. Further, the cost of such shares shall be treated as a capital loss to
the investor.
* An increase in the rates of STT on sale of an option in securities from 0.0625% to 0.1%
of the option premium, and on sale of a futures in securities from 0.0125% to 0.02% of the
price at which such futures are traded.
10. LABOUR RELATED REFORMS
* Open architecture databases for the widely changing job market, and connecting potential
employees with industry will be covered in the reforms.
Shram Suvidha and Samadhan portal will be revamped to enhance ease of compliance for
industry and trade.
11. Abolishing angel tax
In addition to the angel tax abolition, the Finance Minister extended the definition of “eligible startup” under the Startup India scheme to include entities incorporated between April 1, 2016, and March 31, 2025. This extension allows more startups to benefits from the tax holiday offered under the scheme.
Pushkar Mer 