The entire nation heard the Union Finance Budget presented by our Honourable Finance Minister at the Parliament on July 23 2024.
As always, different viewpoints emerged- some praising the Budget, some denigrating it and some in the via media.
Everybody is selfish. The question before each person is “What’s in it for me?”
I am not an exception, neither a Buddha nor a Christ.
I am a simple insurance pensioner in the tax bracket of Rs 7 to 10 lacs. There may be millions of people like me in this category. So I am presenting this narrative from my and theirs perspective.
Some Gains Some Pains
First from the Income tax point of view- Standard Deduction increased to Rs 75000 from Rs 50000. With this, for income upto Rs 7 lacs, there is no tax with income upto Rs 7.75 lacs.
For Family Pensioners, a happy news- Deduction increased to Rs 25000 from Rs 15000.
For employees, another cheerful information- Employer’s contribution to NPS raised to 14% from 10% of the salary.
Credit of all tax deducted or collected to be allowed while computing TDS on salary.
Angel Tax on issue of shares of unlisted companies at a price exceeding fair market value abolished from April 1 2025.
Timelines for tax Reassessment to be reduced from 11 years to 5 years from end of relevant tax year.
Exemption limit for LTCG from Listed Securities raised to Rs 1.25 lacs from Rs 1 lac.
Import of three cancer drugs exempted from basic customs duty. Lung cancer drug earlier priced at Rs 204000 will get cheaper by Rs 19000.
BCD on cell phone and its charger/adapter cut to 15%vfrom 20%.
Custom duties on Gold and Silver reduced to 6% and that on Platinum to 6.4%.
Pains
Amount received on buyback of shares to be taxed in hands of shareholders.
STCG on Listed Securities to be taxed at 20% from the earlier 15%.
TCS of 1% on luxury goods costing above Rs 10 lacs.
While LTCG rate for all categories of assets including house property and jewellery has been reduced to 12.5% from 20% , Indexation benefit is no longer available. So this could increase tax liability on sale of such assets.
Sweetener for all Income Tax Payees
Tax slabs have been changed for those under the New Regime-
The 5% rate will apply from Rs 3 lacs to 7 lacs rather than Rs 6 lacs at present.
Similarly, the 10% rate kicks in at Rs 10 lacs instead of Rs 9 lacs.
The result is a saving of further Rs 10000 for those with annual incomes of Rs 10 lacs or more. Those opting for the Old Rewgime will not get any of these. Their exemption limits etc remain the same. Standard Deduction also remains the same- Rs 50000.
The other tax slabs for income exceeding Rs 10 lacs under the New Regime remain the same.
For Development Activities
Provision of Rs 1.52 lac crore for agriculture and allied sectors.
Upto Rs 10 lac support to students for domestic institution studies.
Rs 2.66 lac crore for rural development and infrastructure.
Three crore more houses under PM Awas Yojana.
Mudra loan limit enhanced to Rs 20 lacs from Rs 10 lacs.
12 Industrial Parks sanctioned.
11.11 lac crore rupees for Capital expenditure.
Rs 1 lac crore for Research and Innovations.
1000 Industrial Training Institutes to be upgraded.
Providing Internships to one crore youth , with interns receiving a stipend of Rs 5000 pr month and one time assistance of Rs 6000.
Rs 2 lac crores over 5 years for creating jobs for youth and for on skilling them.
The Insurance man in me- although I am a 78-year-old pensioner- tells me that scope for our Field Force is enormous for improving their new business and thereby increasing the status of our Insurance Behemoth.
Overall Picture
The overall mood in the country is excellent following the presentation of the Union Finance Budget and I am sanguine that LIC and its dedicated team will grab this opportunity to enhance their business so that we shall march towards our avowed objective of INSURANCE FOR ALL BY 2047.
