Padmesh Prabhune – Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25 in parliament today July 23, 2024. While presenting her seventh consecutive Union Budget, Sitharaman thanked the people for awarding Prime Minister Narendra Modi a historic third term.
The budget 2024 envisaged sustained efforts on 9 priorities for generating ample opportunities for all. It includes productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development and next-generation reforms.
Simplifying the tax regime for corporate industries, Sitharaman proposed new tax structures for charities, foreign shipping companies, and rationalisation of capital gains in her 2024 Budget speech.
She also reduced corporate tax on foreign companies from 40 to 35%.
In a press briefing after the announcement of Union Budget 2024 Sitharaman said that the average taxation has come down for asset classes which encourages investment in the market. She said that an attempt has been made to widen the tax net and it has to be widened for both direct and indirect taxes. It was also clarified that the increased Securities Transaction Tax (STT) on F&O will be effective from October 1, 2024.
Promoting Domestic Aviation and Boat & Ship MRO
While the budget seems to have addressed all the sectors when it comes to Maritime industry Finance Minister Nirmala Sitharaman announced incentives to enhance maintenance, repair and overhaul activities in the shipping sectors during the budget speech, aiming to support the growth of India’s domestic shipping market.
She announced that ownership, leasing and flagging reforms would be implemented to improve the share of the Indian shipping industry and generate more employment.
Trade facilitation
For promotion of domestic aviation and boat & ship MRO, time period for export of goods imported for repairs extended from six months to one year. Time-limit for re-import of goods for repairs under warranty extended from three to five years. Simpler tax regime for foreign shipping companies operating domestic cruises to promote cruise tourism in India.
Simpler tax regime for ‘Foreign Shipping Companies’
Sitharaman also announced a simpler tax regime for foreign shipping companies operating domestic cruises in India. Changes include scrapping taxation for cruise ships, fixing profit and gains of cruise-ship operators to 20% of aggregate amount received.
Highlights Of Fiscal Budget
1) Five schemes announced to focus on 4.1 crore youth over 5 years with outlay of INR 2 lakh crore
2) Internship scheme for one crore youth in top companies over five years
3) Employment-linked incentives, including one month’s wage support for first-time employees
4) For MSMEs: Credit guarantee scheme and term loans for machinery purchase, technology support package for MSME’s.
5) SIDBI to open 24 new branches to serve MSME clusters
6) Mudra loan limit increased from INR 10 lakh to INR 20 lakh
7) Financial support for higher education loans up to INR 10 lakhs
8) Provision for rural development at INR 2.66 lakh crore
9) Special financial support of INR 15,000 crore for Andhra Pradesh
10) New airports, medical facilities, and sports infrastructure for Bihar
11) Inflation moving towards 4% target
12) Over INR 3 lakh crore allocated for schemes benefiting women and girls.
Marex Media