Union Budget Updates- Live Updates: New Regime of Income Tax

Finance Minister Nirmala Sitharaman announced Rs 11,500 crore for flood mitigation in Bihar

Significantly the Finance minister also announced funding for the state of Assam under flood management project. Along with Himachal Pradesh ,Uttarakhand , and Sikkim to be supported for the impact of recent natural disaster.

Family pension deduction: 

Rs 15000 to Rs 25000 is the limit for deduction for the family pensioners

Long-term capital gains (LTCG) tax

10%to 12.5% increase in the long term capital gains

Short-term capital gains (STCG) tax

20% tax levied on Short Term capital gains on some assets. The applicability of income tax will be on other financial and non-financial assets

The announcement clarifies the incentive for Long Term Holdings and the stretch between the Short Term capital gains and long term capital gains. The limit to exemption on certain financial assets has increased to Rs 1.25 lakh annually.

0.1 % and 0.2% hike in Securities Transaction Tax and on Futures and options. It can be analyzed the distinctive removal of retail investors from trading in the line of market risk.

Major Tax and Job Reforms Finance Minister Nirmala Sitharaman

Abolishing Angel tax for all classes of investors in startups is one of the significant announcement in the Budget 2024-25. The announcement also informed the upraise of standard tax slab deduction for salaried tax payers from Rs 50000 to 75000. The withdrawal of 2% equalization of tax levied. It surpassed the Budget for record of Morarji Desai. The new Financial year 2025 will increase the deduction from Rs 50000 to 75000 under the new income tax regime. The Budget presents priorities in nine opportunities generating employment are in the field of Research and Development ,Energy Security, Productivity and Resilience in Agriculture, Urban Development , Infrastructure , Innovation ,Employment and Skilling to name a few. There is a major announcement in the Budget for financial boost in the infrastructure in Bihar and Andhra Pradesh.

Union Budget 2024-25

The difference between total expenditure and Revenue Receipts that also includes Non-Debt Capital receipts are Fiscal Deficit. The total borrowing of requirement of government is the Fiscal Deficit. Revenue Deficit are the excess of revenue expenditure over revenue receipts. The difference between revenue deficit and grant in aid for creating of capital assets is the effective revenue deficit. Effective Capital mean the total of Capital Expenditure and Grants-in-aid for creating capital assets.

The Central Government's constitutional validity

Article 113 of the constitution says that all expenditure to be submitted in the form of Demands for Grants to Lok Sabha. It is examined by the departments related standing committee . Followed by the discussion and approval in Lok Sabha. The Consolidated Fund of India permits and passes expenses of the Appropriated Bill on the demand of the Lok Sabha authorization. The Union Budget presents the Central government expenditure in every financial year.

The Union Budget 2023-24

The present Finance Minister Ms Nirmala Sitharaman presented the Union Budget 2023-24 on February 1, 2023. Expenditures that included was Rs 45,03,097 crore in the 2023 financial year.

Rs 35,02,136 crore Revenue Expenses for the 2023-24. 1.2% inclination from the revised estimates 2023-24.

41% of the Interest Expenditure in the revenue receipts.

37.4% inclination of the Revised Estimates in 2022-23. Rs 10,00,961 crore was the Capital expenditure. Its an expenditure derived out on transport infrastructure and capital loan to states.

2.9% of GDP lower than the revised revenue deficit of 4.1% in 2022-23.

6.4 % of 2022-23 and 5.9 % of GDP was the declination than the revised fiscal deficit.

A glimpse of Budget in the year 1980-81

Shri R. Venkataraman the then finance minister presented the Budget for the year 1980-1981. It said that there was a declination of gross national product by 3 % in the year 1979-1980. The declining factors involved were the 10% fall in agricultural production and one percent fall in industrial production. The economic scenes were also one of the concerning cause for the serious deficiencies of power coal and railway sectors.

In the year 1979-1980 the production of coal and lignite were 106 million tones, and was considered marginally better than four years ago.

1979-1980 the declination showed the results by 3.3% from the year 1978-1979. The declination was said to be highest in terms of tones of Railway Revenues in 1967-1977.

He also mentioned many other points that highlighted the country's economy. At the last he said that his budget represented a modest contribution. It was aimed to restore the stability ,growth, and social justice. The workers in the fields or factories, power station or ports, railways or coal mines the necessary contribution will declare the country as successful

Morarji Desai Budget

Five annual and one interim budget was introduced in the second tenure of both Finance Minister and Deputy Prime Minister. In the year from 1959-1960 and 1963-64 the Annual budgets were presented. In the year 1962-63 the interim budget were presented. Morarji Desai also presented the annual budgets from the year between 1967-68 and 1969-70. The interim budget was also presented from 1967-1968

1956-1958 and 1964-1966

TT Krishnamachari an industrialist introduced the wealth tax and expenditure tax in the year 1956. The two levied tax endorsed the spirit of Krishnamachari to patriotic voice described his feelings for equality and positive social improvement. He also believed that it was towards the advancement of economic policy when the conscience and solidarity of people were raised to the highest level.

His tenure during 1964-1965 he disclosed for the first time the hidden income scheme in India

Jawaharlal Lal Nehru budget as Union Finance Minister in 1958-59.

Jawaharlal Nehru the First Prime Minister of India in the year 1956 introduced the gift tax. Charitable Institution , Government Companies Corporation that was established under Central or State Acts were exempted. The Public Companies that had an affair of six and more people at controlling were also exempted. There were few exemption to the Estate Duty Act. The terms Nehru served were from August 1, 1956 to August 30 1956 and again on February 14 1958 to March 22 1958

The year 1951-1952

Chintaman Dwarakanath presented the first interim Budget in the year 1951-1952. The First five Year plan proposed the rise of taxes. It includes Corporation Tax and the levy of 5 % additional charges on all income tax and super tax rates. He enunciated his budget with a story teller in which a man proposes to submit Rs 5 annually to the bank for he has no slab of paying taxes to the government. But he also ensured such spirit must be encouraged to every citizen of the country.

A budget has no inclusion of foreign relations but in the year 1950 foreign inflow of financial aid was a part. Russia ,United States of America, and United kingdom were the major sources of such flow. His tenure inaugurated the National Council of Applied Economic Research was established. Mr Dwarakanath served as the founding member of its governing body

Origination of Budget

In the year 1860, 7th of April the East India Company introduced the Budget for the first time. The East India Company introduced it to the British Crown.

In the year 1869 , 18th February the first Budget was presented by James Wilson. The Indian Viceroy had its first advisor as to the Indian Viceroy named Mr Wilson. Mr Wilson was a Scottish Liberal Politician and Economist.

The First Prime Minister of India

Sir RK Shanmukhan Chetty , was the constitutional advisor to the Chamber of Princess. Novembor 26th ,1947 Mr Chetty presented the first budget of Independent India. 80 Budgets were introduced then in India. For the British rule our country followed the UK budget in many ways and many years.

The Budget after Independence of India

In the year 1949-50, the five year plans ,formation of Planning Commission financial statements of Princely states included all in John Mathai Budget. The post Independence India unanimously formed the budget on inflation presented by John Mathai.

Understanding to Budget

A budget is a management instrument used by any entity, financially, assuring different dimensions of expenses, revenues, objectives. It is the evaluation of economic efficiency and the result of the management centers. The final evaluation done after comparative economic efficiency is know as budget.

To summarize, the annual estimated receipts and expenses of of the government declared in every financial year in the form of annual statement. To quote

Taylor says 'Budget is a financial plan of a government for a definite period.'