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Tag: nirmala sitharaman

  • Budget 2024: Rebate Under Section 87A Decreases By Rs 5K As Tax Structure Under New Tax Regime Revised — Understanding The Math | Personal Finance News

    New Delhi: Finance Minister Nirmala Sitharaman, presenting the Budget 2024 in Parliament made two significant announcements for the employed people to make for those opting for the New Tax Regime. First, the standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000. Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000. Secondly the FM announced a revised tax structure under the New Tax Regime.

    What is the new tax slab under the New Tax Regime?

    There will be zero tax on income between Rs 0 to Rs 3 lakh, under the new tax regime. There will be a 5 percent tax on income between Rs 3 to 7 lakh, 10 percent tax on income between Rs 7 to 10 lakh, 15 percent on income between Rs 10 to 12 lakh, 20 percent on income between Rs 12 to 15 lakh and 30 percent tax on income above Rs 15 lakh.

    Which tax slab was in place earlier?

    Till now, under the new tax regime, income between Rs 0 to Rs 3 lakh was tax-free. There was a 5 percent tax on income between Rs 3 to 6 lakh, 10 percent on income between Rs 6 to 9 lakh, 15 percent on income between Rs 9 to 12 lakh, 20 percent on income between Rs 12 to 15 lakh, and 30 percent tax on income above Rs 15 lakh.

    Understanding how the rebate has been reduced by Rs 5000

    You used to receive a tax refund of Rs 25,000 under Section 87A of the new tax regime if your total taxable income was less than Rs 7 lakh. There was no tax on your salary till Rs 0-3 lakh. The tax at a 5 percent rate was Rs 15,000 on a salary of Rs 3-6 lakh. On the other hand, the tax at the 10 percent rate was Rs 10,000 on a salary of Rs 6-7 lakh. In this way, you would get a full rebate of Rs 25,000.

    Now after the change in the tax slab, your salary up to Rs 3 lakh becomes tax-free. You have a tax liability of Rs 20,000 at the rate of 5% on the slab of Rs 3-7 lakh, on which you would receive a refund under Section 87A. This indicates that the rebate, which was previously Rs. 25,000, is now Rs. 20,000. Thus, the refund you receive under section 87A has decreased due to the change in tax slab.

    Will there be any losses for you?

    You may be wondering if you would lose out because the change in tax slab will result in a smaller refund. The response is negative. If your taxable income was up to Rs. 7 lakh earlier you would receive a refund of Rs. 25,000; going forward, you will receive a refund of Rs. 20,000. Your salary up to Rs 7 lakh would be tax-free in any case.

    Who stands to gain?

    Those whose taxable income exceeds Rs 7 lakh will profit from the change in the tax slab. Those whose income exceeds Rs 7 lakh will not be eligible for the 87A rebate. Previously, individuals in this category had to pay a tax of Rs. 25,000 on income up to Rs. 7 lakh. However, now, they will only be required to pay a tax of Rs. 20,000.

  • Budget 2024: LTCG Reduction On Property Without Indexation Bad News For Sellers; Check Calculation | Real Estate News

    Finance Minister Nirmala Sitharaman presented her 7th budget in which she announced some changes in the new tax slabs while the old remain untouched. FM Sitharaman also proposed a long-term capital gain tax rate of 12.5% on all financial and non-financial assets including properties. Listed financial assets held for more than a year will be classified as long-term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term. 

    “Long-term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to Rs 1.25 lakh per year,” said the FM. The Finance Minister also announced to remove the indexation clause for the ease of tax computation. However, this will prove detrimental for the property sellers. Indexation is used to adjust the property price at the time of sale to account for inflation. 

    Check Property Sale LTCG Calculation Here

    The Congress party shared a detailed calculation showing how LTCG reduction without indexation is not good news for people. “Suppose you bought an apartment in January 2009 for Rs 50 lakhs. Fifteen years later, you sold it today for Rs 1.5 crore. With indexation, the Rs 50 lakhs you paid 15 years ago is considered to be worth Rs 1.32 crore today. So, the net profit or capital gain is only Rs 17.5 lakhs, and you’d pay only Rs 3.5 lakhs as Capital Gains Tax at the rate of 20%. But without indexation, your capital gain now is Rs 1 crore, and at 12.5%, you’d end up paying Rs 12.5 lakhs in tax. Essentially, the government takes Rs 9 lakhs more than the old method,” it said.


    It further clarified that if you bought an apartment in January 2018 for Rs 80 lakhs and sold it today for Rs 95 lakhs due to a personal emergency. “This is where it gets tough. If indexation was applicable, you actually made a loss of Rs 11.76 lakhs and would have paid ‘Zero’ LTCG tax. But with the new method, Nirmala Sitharaman will add salt to your wound. She will take Rs 1.87 lakhs from you as LTCG. Your net loss becomes Rs 13.63 lakhs,” it said.


    For those unfamiliar with the Cost Inflation Index (CII), it shows how the value of Rs 100 in 2001-02 is now Rs 363. 

    LTCG to Loot Middle Class | How will removing indexation in calculating LTCG tax affect everyone?

    Today, FM @nsitharaman reduced Long Term Capital Gains (LTCG) Tax on properties to 12.5%, but cleverly removed indexation, which adjusts the property price at the time of sale, to… pic.twitter.com/6uaYjtIaDP
    — Congress Kerala (@INCKerala) July 23, 2024

    The Income Tax Department also shared a test calculation scenario where it claimed that people will save taxes due to removal of the indexation.

    Taxation of Capital Gains – Salient Points

    Holding period has been simplified. There are only two holding periods, for listed securities, it is one year, for all other assets, it is two years.

    Rate for short-term STT paid listed equity, Equity oriented mutual fund and… pic.twitter.com/w1AdvHDInV
    — Income Tax India (@IncomeTaxIndia) July 23, 2024

    Even experts shared the same concern. They agreed that removing indexation defeats the whole purpose of LTCG. “This affects everyone and will push more people to undervalue their transactions, increasing the use of black money. This makes real estate investments less attractive and could drive our construction sector into an even bigger crisis,” it said.

  • Explained: Is It Union Budget Or Bihar-Andhra Budget? Why Nitish-Naidu Run States ‘Got Too Much’ This Time – 10 Points |

    New Delhi: The Union Budget for the financial year 2024-25, presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday, has brought substantial allocations for Bihar and Andhra Pradesh. This is the first budget of Prime Minister Narendra Modi’s third term and the seventh for Sitharaman as Finance Minister. The budget has raised questions and sparked debates, with some labeling it as a budget aimed more at political gains rather than national development. Here are 10 key points explaining why Bihar and Andhra Pradesh received significant allocations and the controversies surrounding it:

    Major Announcements for Bihar and Andhra Pradesh:

    Finance Minister Nirmala Sitharaman announced an allocation of ₹58,900 crores for various development projects in Bihar and ₹15,000 crores for the development of Andhra Pradesh’s capital, Amaravati, and other projects. This significant allocation has been seen as a major boon for the states led by JD(U) President and Bihar Chief Minister Nitish Kumar and TDP Chief and Andhra Pradesh Chief Minister Chandrababu Naidu.

    Political Context:

    Both Nitish Kumar and Chandrababu Naidu are allies of the ruling NDA at the Center. With the BJP falling short of a majority by itself, needing the support of these regional parties, the allocations are seen as a strategic move to secure their continued alliance and support.

    Opposition’s Allegations:

    The opposition has criticized the budget, accusing the Modi government of political favoritism. Congress MP and Leader of the Opposition in Lok Sabha, Rahul Gandhi, called it a “save the chair” budget, aimed at appeasing political allies and business friends at the expense of other states.

    Claims of Regional Bias:

    Various opposition leaders, including Rahul Gandhi, Shashi Tharoor, and P. Chidambaram from Congress, and Akhilesh Yadav from SP, have criticized the budget for being biased. They have alleged that it neglects other regions and states, focusing only on BJP’s political allies.

    Praise from Allies:

    Despite the criticism, BJP and its allies have praised the budget. Andhra Pradesh CM Chandrababu Naidu thanked PM Modi and Finance Minister Nirmala Sitharaman. Bihar’s Union Minister Giriraj Singh welcomed the budget, calling it a “blessing” for Bihar.

    Substantial Allocations for Bihar:

    The budget includes ₹26,000 crores for various road projects in Bihar, including expressways connecting Patna-Purnia and Buxar-Bhagalpur. It also allocates ₹21,400 crores for a 2400 MW power project in Pirpainti and ₹11,500 crores for flood relief and management.

    Development of Cultural and Religious Sites:

    The budget mentions the development of Mahabodhi Temple and Vishnupad Temple in Bihar, akin to the Kashi Vishwanath Corridor. Additionally, new medical colleges, airports, and sports infrastructure will be developed in Bihar.

    Support for Andhra Pradesh:

    The budget allocates ₹15,000 crores for Andhra Pradesh under the Andhra Pradesh Reorganization Act. This includes funds for critical infrastructure like water, power, railways, and roads, along with financial support for the completion of the Polavaram irrigation project and the development of backward areas.

    Strategic Importance of Bihar and Andhra Pradesh:

    The significant allocations are seen as a strategic move by the BJP to maintain its political alliances. In the 2024 Lok Sabha elections, BJP secured 240 seats, falling short of the majority mark of 272. TDP and JD(U) won 16 and 12 seats respectively, making their support crucial for the BJP’s government formation.

    Balancing Political Demands:

    While Bihar and Andhra Pradesh did not receive the Special Status they have long demanded, the substantial budget allocations serve as a compensatory measure. This move ensures that the BJP retains the political support of Nitish Kumar and Chandrababu Naidu, crucial allies in the NDA coalition.

  • Assam Gets Special Assistance From Union Budget 2024, Key Highlights |

    New Delhi: Union Finance Minister Nirmala Sitharaman on Tuesday announced financial assistance for various projects of Assam which includes the boosts of infrastructure, powering small businesses and others for growth. Assam Chief Minister Himanta Biswa Sarma expressed gratefulness after getting special assistance for his state.

     

    Assam CM Himanta Biswa Sarma tweets “We are extremely grateful for the special assistance Assam will receive under this Budget to help meet the challenges posed by floods. The excellent reforms announced for land registration will complement our ongoing efforts like Mission… pic.twitter.com/AZHll78fUO
    — ANI (@ANI) July 23, 2024

     

    Key Highlights Announced For Assam In Union Budget 2024:

    The state has been facing a devastating condition long time due to floods. In the Union budget 2024, the Finance Minister special special assistance to Assam to help meet the challenges posed by floods.

    The excellent reforms announced for land registration will complement ongoing efforts like Mission Basundhara 3.0.

    In announcement includes the provision to implement the Pradhan Mantri Cha Shramik Protsahan Yojana. With an allocation of ₹ 1,000 crore, this scheme will provide several welfare opportunities for Assam’s tea garden community. Meanwhile, Assam CM said that this scheme is going to benefit our brothers and sisters, who form the backbone of Assam’s tea industry.

    Nirmala Sitharaman announced the infrastructure push via ₹1.5 lakh cr. to states, focus on improving agricultural productivity, green energy initiatives and generous allocation for rural development will also have a multiplier effect on Assam’s growth.

    In Union Budget 2024 has also announced several progressive measures such as the review of the IT Act,  withdrawal of Angel Tax, reducing the fiscal deficit, sustaining capex and several other measures that will ensure India remains the fastest growing economy for years to come.

  • Union Budget 2024: Timing Of Budget, LIVE Streaming, Where To Watch FM’s Speech Live? | Economy News

    New Delhi: Union Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on Tuesday, July 23.
     

    Union Budget 2024: FM Sitharaman’s Speech Timing

    The live streaming of the Budget 2024 presentation will begin at 11 am today. There will be a slew of options for the audience to stream the Budget 2024 presentation live.  
     

    Where To Live Stream Union Budget 2024? 

    Viewers can watch the live streaming of the Union Budget 2024 presentation on Lok Sabha TV, Rajya Sabha TV, DD News and news channels. The Finance Minister’s address is available to view live online via Zee News Live TV. On July 23, the Zee News app will stream the Budget 2024 live, providing post-budget commentary to help viewers better comprehend the developments. 

    To watch the live presentation of the Union Budget, you can also go to the official Lok Sabha YouTube and Twitter accounts, as well as the official parliament channel, Sansad TV. The Union Budget 2024 speech will also be televised by national broadcaster Doordarshan.

    Union Budget: FM Nirmala Sitharaman’s Speech

    She has given numerous lengthy talks on the budget during the last few years. For example, she gave the longest speech in Indian history in 2019—two hours and fifteen minutes—during her Budget speech. She did, however, surpass her own record in 2020 when she gave a speech that lasted about 162 minutes. The FM gave a one-hour and 27-minute speech in which she announced the 2023 budget.

     

     

  • THIS Finance Minister Changed The Budget Presentation Timing From 5pm To 11am, Ditching British-Era Practice | Economy News

    New Delhi: Before 1999, the budget used to be revealed at 5 pm on the last working day of February, following a British-era practice. However shifting gears, former Finance Minister Yashwant Sinha shook things up by moving the budget presentation to 11 am in the same year.

    Reports state that the reason behind the change in Budget presentation timing was the time difference between New Delhi and Westminster, United Kingdom. India is 4.5 hours ahead of British Summer Time.

    Sinha, a BJP Stalwart, thought that the switch in timings from evening to morning, would let everyone dive deeper into the numbers and announcements. His idea got the green signal  on February 27, 1999 and for the first time in Independent India’s history, the budget was announced at 11 am.

    Union Budget 2024 To Be Presented On 23 July 2024

    Union Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2024-25 in Parliament tomorrow. With this Budget presentation, Sitharaman is set to surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister. Sitharaman’s upcoming budget speech will be her seventh. 

  • Budget 2024: Health Experts Urge Government To Increase Bed Availability, Provide Subsidised Vaccines | Personal Finance News

    New Delhi: Health experts stressed the importance of increasing the number of hospital beds in the country during a pre-budget meeting with Finance Minister Nirmala Sitharaman in Delhi on Thursday. They emphasised that the current availability is below the standards set by World Health Organization (WHO).

    Girdhar Gyani, Director General of the Association of Healthcare Providers said, “We have presented to the government the data that there are less than two beds per thousand population in our country, while WHO requires that there should be 3.5 beds per thousand population. Over and above, we have told them that there is a great disparity in terms of bed density,” (Also Read: Vedanta Announces Financial Support For Transgender Employees’ Higher Education)

    The experts also pointed out that in regions like Bihar, the shortage of hospital beds forces patients to travel long distances for treatment “Karnataka has got 4.2 beds per 1,000 population, while Bihar has got only 0.3 beds per 1,000 population. So this makes Bihar population travel all the way for treatment,” Dr. Gyani explained. (Also Read: 6 Key Health Insurance Claim Rule Changes You Need To Know: Details Here)

    Additionally, the experts proposed that certain adult vaccines, such as the influenza vaccine and the cervical cancer vaccine for women, should be provided at subsidized costs. “Certain adult vaccination is a very important point. People do not know there is adult vaccination. Like we have influenza.

    There is a vaccine available for cervical cancer in women, and those people don’t know about it. So we want to provide some vaccines, either free or at the subsidized cost to the population,” Dr. Gyani added after the meeting with the finance minister.

    The experts also highlighted that, under the Ayushman Bharat Scheme, patients often need to go to private hospitals because 85 per cent of tertiary care beds are in the private sector. They suggested implementing a co-payment scheme for Ayushman Bharat patients to access treatment in private hospitals.

     “We are suggesting let there be a co-payment scheme. That means certain higher-end hospital patients can go and over and above the government reimbursement they should be allowed to pay cash from their own side so this will provide flexibility to the patient,” Dr. Gyani said. (With ANI Inputs)

  • GST Council Meeting: FM Sitharaman Announces Nationwide Biometric Authentication- Key Highlights | Economy News

    New Delhi: Finance Minister Nirmala Sitharaman in the 53rd GST Council Meeting announced that biometric authentication will be implemented nationwide in phases to curb fake invoicing. For efficient GST registration the council recommended making Aadhaar biometric authentication mandatory for all new registrations across the country.

    “There is going to be a rolling out of biometric-based Aadhaar authentication on an all-India basis. This will help us to combat fraudulent input tax credit claims made through fake invoices in the cases,” the minister announced during the briefing following the 53rd GST Council meeting.

    Here are the key announcements made by the Finance Minister after the GST Council meeting:

    – The GST Council has recommended waiving interest penalties on demand notices issued under Section 73 of the GST Act for the fiscal years 2017-18, 2018-19, and 2019-20. This waiver applies to cases that do not involve fraud, suppression, or misstatement. Taxpayers who settle the full tax amount demanded in the notice by March 31, 2025, will be eligible for this benefit.

    – For returns submitted by November 30, 2021, the deadline for Input Tax Credit (ITC) claims for the fiscal years 2017-18, 2018-19, 2019-20, and 2020-21 is considered to be November 30, 2021.

    – To curb government litigation, the Council suggested establishing monetary thresholds for filing appeals by departments: Rs 20 lakh for the GST appellate tribunal, Rs 1 crore for high courts, and Rs 2 crore for the Supreme Court.

    – The Council extended the deadline for submitting returns from April 30 to June 30 for the fiscal year 2024-25 and onwards.

    – The Council clarified that all types of sprinklers, including those for fire and water, will now have a uniform GST rate of 12 per cent.

    – In addition, accommodation services valued at up to Rs 20,000 per person per month which are provided continuously for at least 90 days will also be exempt from GST.

    – The Council proposed a uniform GST rate of 12 per cent on all milk cans, regardless of the material they are made from (steel, iron, aluminum), aiming to resolve disputes.

    -The Council also proposed a 12 per cent GST rate for all types of carton boxes and cases made from both corrugated and non-corrugated paper or paperboard. This change is expected to especially benefit apple growers in Himachal Pradesh and Jammu & Kashmir.

    The Finance Minister announced that the next meeting of the Goods and Services Tax (GST) Council is tentatively scheduled for sometime in mid to late August. She pointed out that the groundwork for this inclusion was laid during the initial implementation of GST and stressed that the final decision now rests with the state governments.

  • Budget 2024: FM Nirmala Sitharaman Chairs Pre-Budget Meeting With State, UT Finance Ministers | Personal Finance News

    New Delhi: Union Finance Minister Nirmala Sitharaman chaired a pre-budget meeting with the Finance Ministers of all States and Union Territories on Saturday morning.The Ministry of Finance and Corporate Affairs organised a Pre-Budget Meeting with the Finance MInisters of all States and Union Territories with Legislatures. The purpose of the meeting was to gather suggestions for the upcoming Union Budget 2024-25.

    Ministers of State and other stakeholders are attending the meeting. Visuals showed Uttar Pradesh Finance Minister Suresh Kumar Khanna and Rajasthan Finance Minister Diya Kumari at the Bharat Mandapam venue before the meeting started this morning. (Also Read: Beware! Claiming False HRA While Filing ITR Could Cost You THIS Much: Check Here)

    The Union Finance Ministry had begun consultations on the budget a few days ago with different stakeholders of economy. Sitharaman has met economists, finance and capital market experts and industry bodies. (Also Read: Govt Imposes Stock Limits On Traders To Keep Prices Of Pulses In Check)

    Sitharaman chaired the first pre-Budget consultations with leading economists on June 19. The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, the finance secretary, secretaries of the departments of economic affairs, revenue, financial services and corporate affairs and the chief economic adviser.

    Meanwhile, Sitharaman will also chair the 53rd Goods and Services Tax (GST) Council Meeting scheduled in the second half of the day. This is the first meeting of the GST council after the formation of the new government.

    State finance ministers will also be present at the 53rd meeting of the Goods and Services Tax Council. As is the norm, the GST Council gets together to discuss issues pertaining to the GST regime, such as tax rates, modifications to policies, and administrative challenges.

    The Council is a key player in shaping India’s indirect tax system, making sure that it facilitates company and citizen tax relief while also being in line with the country’s economic objectives. The information on the agenda of Council meeting is not yet in public domain.

    However, the decisions and recommendations arising from the 53rd GST Council meeting will be closely watched by various stakeholders, including businesses, policymakers, and the general public, as they have the potential to influence taxation, trade, and overall dynamics.

    Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years. Meanwhile, preparation has commenced for the Union Budget 2024-25, the first for the third term of the Prime Minister Narendra Modi-led National Democratic Alliance government. (With ANI Inputs)

  • Nirmala Sitharaman To Hold Pre-Budget Meeting With Industry Leaders On June 20 | Markets News

    New Delhi: As part of pre-budget consultations, Finance Minister Nirmala Sitharaman is scheduled to meet representatives from industry associations on June 20 evening.

    The meeting, slated to take place between 4 and 6 pm at North Block, will see industry associations such as the Federation of Indian Chambers of Commerce & Industry (FICCI), Confederation of Indian Industry (CII), Associated Chambers of Commerce and Industry of India (Assocham), and PHD Chamber of Commerce and Industry presenting their budget suggestions and recommendations.

    This meeting is part of the government’s annual pre-budget consultations aimed at garnering feedback and suggestions from key stakeholders to shape the upcoming Union Budget.

    The budget is anticipated to be tabled in Parliament in the third week of July.

    Ahead of their meeting with the Finance Minister, industry associations will meet Revenue Secretary Sanjay Malhotra on June 18. The discussions are expected to cover a broad range of topics, including tax reforms, incentives for various industries, measures to boost economic growth, and policies to support small and medium enterprises (SMEs).

    This will be the Modi government’s first budget after it assumed office for the third successive term. Nirmala Sitharman had presented an interim budget on February 1 ahead of the Lok Sabha polls. She has so far presented six budgets in a row and will create a record when she presents the full-fledged budget for the new term of the BJP-led National Democratic Alliance government.