There won’t be any tax up to Rs 3 lakh annual income. 20 per cent TDS on buyback of mutual funds or UTI has been withdrawn.

The union Finance minister Dr. Nirmala Sitaraman today presented her seventh national Budget in sequel for the year 2024-25 in Lok Sabha.

The budget has new declarations for the farmers, youths and those employed in Government and private sectors.

Announcing exemption on Income tax limit up to three lakh annual income , the finance minister said that there won’t be any taxation on the annual income up to three lakhs.

Those earning Rs 3 to 7 lakhs annually will have to pay 5% tax and those earning Rs 7 to 10 lakhs will have to pay 10%.

Dr. Nirmala Sitaraman said that on the income from Rs. 10 to 12 lakhs the tax will be 15% and from 12 to 15 lakhs 20% whereas on the income above Rs 15 lakhs annually the tax will 30% .

The government has increased the standard tax deduction limit to Rs 75 thousand from Rs 50000.

Similarly, the exemption on family pension has also been increased from Rs. 15 thousand to 25 thousand.

According to the finance minister due to these concessions about four crore pensioners and employees would be directly benefited.

Finance minister Dr. Nirmala Sitaraman said that the fiscal deficit for the year 2024-25 is believed to be 4.9% of the GDP ( Gross Domestic Product). She said that the targetted fiscal deficit has to be brought below 4.5%.

The budget has also proposed to abolish the angel tax of investors on all categories. This will encourage the start ups and start ups culture in the country.

Domestic production of mobile phones and appliances has been increased. Customs duty on mobile phones and mobile chargers will be reduced.

The Finance Minister said, ‘I propose to reduce the BCD on mobile phones and mobile PCBS and mobile chargers to 15%.’

Three more medicines for cancer patients will be completely exempted from customs duty. Customs duty will also be reduced on X-ray tubes and flat panel detectors.

Customs duty on gold and silver will be reduced by 6 percent and on platinum by 6.4 percent.

TDS for e-commerce operators reduced from 1% to 0.1%

On the tax system, the Finance Minister said that there will be one tax exemption system instead of two separate systems in charity cases. Also, for various payments, there will be a provision of two percent TDS instead of five percent TDS.

20 per cent TDS on buyback of mutual funds or UTI has been withdrawn.

TDS for e-commerce operators has been reduced from 1 percent to 0.1 percent. Also, delay in filling TDS will not be considered a crime.

25 critical minerals will be exempted from customs duty and BCD will be reduced on two of them.

Three more medicines for cancer patients will be completely exempted from customs duty. Customs duty will also be reduced on X-ray tubes and flat panel detectors.

Customs duty on gold and silver will be reduced by 6 percent and on platinum by 6.4 percent.

Income Tax Act 1961 will be reviewed.

The Finance Minister said that a comprehensive review of the Income Tax Act 1961 will be done which will reduce tax related disputes and litigation. It is proposed to complete it in 6 months.

The Finance Minister said that ‘Income tax assessment will be reopened after 3 years only in cases where the residual income is Rs 50 lakh and above.’

The Finance Minister said that ‘Long term capital gains tax was increased from 10 to 12.5% ​​and long term capital gains exemption was increased from Rs 1 lakh to Rs 1.25 lakh. Short-term capital gains tax increased from 15% to 20%.

But what is annoying for the people of Uttarakhand, Himachal, Sikkim and Assam states which have lost tremendous human beings and acknowledged massive loss to properties etc during the monsoon due to overflooding , cloud bursts incidents and ecological catastrophes etc have been left out in the Budget with just assurances to help these states with no specific budget sanctioned despite the entire world knowing about the massive loss of human lives and properties n havoc created but Bihar was sanctioned a huge budget of Rs. 11500 crores. Why this step motherly treatment meted out to the Himalayan states, is beyond any clear understanding and anyone’s belief.