The World Opinion

Tag: Union Budget 2024

  • Budget 2024: Decoding The Calculation Of LTCG Under Old And New Capital Gain Tax Regime For House Purchased Before And After 2001 | Personal Finance News

    New Delhi: The Budget 2024 announcement has put the limelight on a fresh debate on whether removing indexation is going to have significant implications for property owners. 

    Sunil Tyagi, Maging Partner, Zeus Laws, in a candid conversation with Reema Sharma of Zee News has shared a detailed calculation on both the scenario when a house is bought before 2001 and after 2001. Here’s all you want to know.

    When a house / immovable property is sold the profit / gain from such sale can be long-term or short-term.

    Ø What is Short-Term Capital Gains (STCG)- If a house is sold within a period of 24 months from the date of its purchase, then any profits / gains from the sale of the house will be treated as short-term capital gain, and the amount of short-term capital gain which will be treated as a part of seller’s total income and will be taxed as per the existing tax slab rates as applicable to such Seller.

    Ø What is Long-Term Capital Gains (LTCG) –If a house is sold after a period of 24 months from the date of its purchase, then any profits / gains from the sale of the house will be treated as long-term capital gain, and the amount of long-term capital gain will be taxed @ long-term capital gain tax applicable in the financial year in which such sale has been affected.

    Ø What is Indexation – Indexation is the process of adjusting the purchase price of the immovable property for inflation.

    Prior to the changes in the Capital Gain Tax regime introduced in the 2024 Budget, the benefit of indexation (i.e., adjusting the value of property as per current market scenario) was available, and the Long-Term Capital Gains was taxable @ 20%.

    In the revised Capital Gain Tax regime introduced in the 2024 Budget, the tax on Long-Term Capital Gains has been reduced from 20% to 12.5% for property sales, however, the benefit of indexation has been discontinued. In cases of properties acquired prior to 01.04.2001, the fair market value as on 01.04.2001 shall be considered as Deemed Cost for computing capital gains tax.

    Case 1 : Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a Case 1 : Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a house is purchased after year 2001:




    Case 2: Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a house is purchased before year 2001




     

    Meanwhile, Prashant Thakur, Regional Director & Head – Research, ANAROCK Group told Zee News, “The elimination of indexation benefits might cause a decrease in investor interest as indexation adjusts the buying price to account for inflation, thereby decreasing the capital gains tax on property sales. Without this advantage the tax burden rises, making real estate investment less appealing. This change could have an impact on high value properties potentially leading to a decrease in demand for such properties.”

     

  • M K Stalin Predicts Modi’s ‘Isolated’ Future Over ‘Budget Bias’; Annamalai Replies |

    New Delhi: Sending a strong warning to Prime Minister Narendra Modi, Tamil Nadu chief minister MK Stalin said that he will be ‘isolated’ if he keeps running the government as per political ‘likes and dislikes.’ Stalin launched a scathing attack over the alleged favoritism in  2024 Budget allocation.  

    Since, the Finanace Minister Nirmala Sitharaman announced the Union Budget, the opposition is claiming that the Bharatiya Janta Party has tried to satisfy its allies in Bihar and Andhra Pradesh with the financial aids in Budget. 

    MK Stalin took to social media platform ‘X’ hours after the Opposition staged a walkout in the Rajya Sabha over the ‘Budget discrimination.’  

    “INDIA coalition MPs have staged a protest protesting the omission of several states in the Union financial report. Hon’ble Prime Minister Narendra Modi You said, “The election is over, now we have to think about the country.” But yesterday’s #Budget2024 will save your regime, not India! Run the government in general. Don’t be bent on avenging those who have yet defeated you. I am bound to advise that if you run the government according to your political likes and dislikes, you will be isolated,” he wrote in Tamil. 

    ஒன்றிய நிதிநிலை அறிக்கையில் ஒருசில மாநிலங்கள் நீங்கலாகப் பல்வேறு மாநிலங்கள் புறக்கணிக்கப்பட்டிருப்பதைக் கண்டிக்கும் வகையில் #INDIA கூட்டணி எம்.பி.க்கள் போராட்டம் நடத்தியுள்ளார்கள்.

    மாண்புமிகு பிரதமர் @narendramodi அவர்களே…

    “தேர்தல் முடிந்துவிட்டது, இனி நாட்டைப் பற்றியே… pic.twitter.com/95xXotDQDa


    — M.K.Stalin (@mkstalin) July 24, 2024

    K Annamalai’s Detailed Response 

    The 2024 Union Budget, the first under the Modi 3.0 administration, was unveiled on Tuesday, sparking intense backlash with accusations of neglecting states governed by non-BJP parties. 

    K Annamalai, the BJP’s state president, has taken a prominent role in defending the budget. Annamalai criticized the Tamil Nadu Chief Minister’s response, calling it ‘ridiculous.’ He further alleged that Tamil Nadu had been overlooked in six out of ten budgets presented by the Congress-led UPA I and II governments. 

    Annamalai in a detailed post said, “Chief Minister Stalin is trying to create an impression that no welfare schemes will be made available to the states other than those named in the text of the financial statement. When the DMK was in alliance with the Congress Party at the Center for ten years from 2004 to 2014, the name of Tamil Nadu did not appear in the financial statements filed for 6 years. Will you say that during those 6 years, the central government in alliance with Congress DMK did not provide any programs to Tamil Nadu?”

    நமது மாண்புமிகு பாரதப் பிரதமர் திரு @narendramodi அவர்கள் தலைமையிலான மத்திய அரசு, 2024-25ஆம் ஆண்டுக்கான நிதிநிலை அறிக்கையை நேற்றைய தினம் தாக்கல் செய்துள்ளது. ஏழை எளிய மக்கள், பெண்கள், இளைஞர்கள், விவசாயிகள் என அனைத்துத் தரப்பினரும் பயனடையும்படி, வெகு சிறப்பானதாக அமைந்துள்ள இந்த… pic.twitter.com/22JEwRQ0Rj
    — K.Annamalai (@annamalai_k) July 24, 2024

  • 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.

  • 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: Andhra Pradesh Gets Big Boost, Rs 15,000 Cr Allocated For Amaravati |

    Union Finance Minister Nirmala Sitharaman announced on Tuesday that the Central government will allocate Rs 15,000 crore for the development of Amaravati in Andhra Pradesh. While presenting the 2024-25 Budget in the Lok Sabha, she emphasized the NDA government’s commitment to the timely financing and completion of the Polavaram Irrigation project, deemed vital for the state and its agricultural community.

    “The government has been dedicated to meeting the obligations set out in the Andhra Pradesh Reorganisation Act. Acknowledging the state’s requirement for a capital, we will ensure special financial assistance through international development agencies. This fiscal year, we will secure Rs 15,000 crore, with additional funds to follow in subsequent years,” she said.

    Sitharaman also mentioned that, as per the AP Reorganisation Act, funds for critical infrastructure development in industries, including water, power, transport, and roads, will be provided, along with grants for the underdeveloped areas of Rayalaseema, Prakasam, and North coastal Andhra Pradesh.

    The Telugu Desam Party (TDP) is a significant ally of the BJP at the Centre. Naidu serves as the Chief Minister of Andhra Pradesh. Since 2014, political parties from Andhra Pradesh have repeatedly protested, demanding special category status for the state. Allegedly, Naidu left the NDA in 2018 because of the failure to award special category status to Andhra Pradesh.

    Special category status designates regions or states for special assistance by the central government, including tax incentives and financial aid, to foster regional development.

  • 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.

     

     

  • Budget 2024 Expectation: What Different Industries And Entrepreneurs Want From Government |

    Finance Minister Nirmala Sitharama will present the Union Budget 2024 tomorrow. The expectations are high from the government this time for all the sectors. While taxpayers are expecting a relief, industries from aerospace to mobility to legal advisories and import-export businesses are keenly looking at the budget. Take a look at what experts want from the NDA government:

    Akshat Khetan, Founder of AU Corporate and Legal Advisory Services Limited (AUCL), said, “Union Budget 2024-25 is expected to focus on enhancing judiciary infrastructure, speeding up judicial appointments, and improving legal aid services. Emphasis will be placed on technological advancements, alternative dispute-resolution mechanisms, capacity building, and legal reforms. Increased funding for legal awareness campaigns and support for victims of crimes will also be prioritized.”

    Dr Omkaar Hari Maali, Founder – Udyami Maharashtra, said, “The biggest expectation for the upcoming budget from aspiring entrepreneurs, particularly those in the export-import sector, is enhanced opportunities for funding. Currently, many new exporters have viable products but lack the financial resources to bring these products to the global market.” The Import-Export coach further said, “In addition to this, it is crucial for the government to establish incubation systems specifically designed for exports. The creation of manufacturing clusters should also include comprehensive training programs and accessible systems to support the export process. I also believe the government should focus on promoting the toy and processed foods industry to position India as the hub for these sectors.”

    Jalaj Kumar Anupam, Director, Consent Elevators, said, “The government should consider raising the income tax exemption limit beyond Rs 5 lakh to ease the burden on citizens and promote compliance. Economic growth relies on a skilled workforce, necessitating investment in re-skilling and vocational training programs. Open e-tendering processes can enhance fairness and accountability, especially for MSMEs. This approach should extend to industries like the elevator sector, ensuring opportunities for all companies, not just major stakeholders.”

    Olivier Loison, Managing Director, Alstom India, said, “It is crucial to continue increasing support for the rail and infrastructure sector. India’s infrastructure is in need of considerable capital investment in railways, metro, and regional trains to effectively cater to the needs of the growing economy in passenger and freight transportation. It would be encouraging to see the government’s push on Production Linked Incentive, tax rationalization, and towards equitable contract terms such as price variation conditions.”

    Dr Urvashi Mittal, Association Secretary 24-25, Inner Wheel, said, “Females comprise 50% of the population. My request to the Finance Minister is to take care of this 50% of the population, benefiting the entire population. For working women, provide hassle-free, cheaper loans, focus on maternity leaves, and ensure creche facilities. Homemakers should have opportunities to supplement their income through online jobs, with a priority on training. Emphasize cervical cancer vaccination and increase the budget for mid-day meals, after-school supervision, courses on ‘Indian Culture’ promoting ‘Vasudhaiv Kutumbakam’ in schools and colleges & include Transgenders in main-stream.”

    Dr Madhu Sudhan Reddy,  Founder of Pharmaceutical companies appealed to the FM to extend the NPA period for MSMEs from 90 to 180 days in the upcoming budget which is crucial for the revitalization of Micro, Small, and Medium Enterprises (MSMEs). “This extension will grant MSMEs more time to recover from financial challenges and avoid immediate default classification. The benefits include improved cash flow management, enhanced credit access, stimulated sectoral growth, and reduced operational stress for businesses. This move aligns with the need to bolster the backbone of the economy—the MSME sector,” said Dr Reddy.

    Aravind Melligeri, Chairman & CEO, Aequs, said, “We are confident the Government will prioritize the Indian Aerospace industry’s growth while presenting the Union Budget 2024-25. At a time when India is emerging the biggest aviation market and accounting for most new aircraft sold globally, we need a booster for making the country a global aerospace manufacturing hub with a thriving domestic Aerospace manufacturing ecosystem. There is thus a need to ensure optimal fiscal mechanisms to make domestic Aerospace manufacturing more viable and attractive. For starters, a PLI scheme for the manufacture of aircraft components and sub-assemblies with an emphasis on high ‘in-country value addition’ will be welcome. Measures such as tax breaks for Aerospace R&D and systems development will also help.”

  • 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. 

  • Union Budget 2024: As Salaried Individuals Demand Hike In ITR Bracket, Check 5 Major Sources Of Income That Are Tax Free In India | Personal Finance News

    New Delhi: Finance Minister Nirmala Sitharaman is scheduled to unveil the Union Budget 2024, the most awaited financial event of the year, on Tuesday, July 23.

    The statement on income tax, which directly affects people’s finances, is what the average person is most interested to hear about from the Finance Minister during the presentation of the Union Budget 2023. 

    Citizens will have to wait and see what the FM has in store for the average person. People could examine a few income categories that are not subject to income tax. These kinds of earnings are referred to as tax-free earnings.


    Here’s looking at 5 major sources of income that are tax free in India


    1. Gift received from relatives

    Gift received from relatives are exempt from tax by virtue of Section 56. The following will be considered as relative for the purpose of claiming such exemption.
     
    (a) Spouse of the individual;

    (b) Brother or sister of the individual;

    (c) Brother or sister of the spouse of the individual;

    (d) Brother or sister of either of the parents of the individual;

    (e) Any lineal ascendant or descendent of the individual;

    (f) Any lineal ascendant or descendent of the spouse of the individual;

    (g) Spouse of the persons referred to in (b) to (f).

    2. Agricultural income 

    Agricultural income is not taxable in the country. However, if you have non-agricultural income too, then while calculating tax on non-agricultural income, your agricultural income will be taken into account for rate purpose. Even if you have only agricultural income, you are advised to maintain some proof of your agricultural earnings/expenses.

    3. Provident fund

    Employee Provident Fund (EPF) offers tax-free returns for those employees who have had an active contribution for more than 5 years in his/her job. This is applicable even if the person has changed multiple organisations/employers in those 5 years.

    4. Scholarships

    Income earned on scholarship is tax free under sec 56(ii) of the Income Tax Act.

    5. Salary Components

    Chunks of your salary component that comes under reimbursement like transport allowance, meal coupons, mobile phone bills, internet bills, books and periodicals, leave travel allowance, leave travel concession etc is tax exempted.

  • 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.