Budget Priorities & Announcements

Nine Priorities for Generating Opportunities

1. Productivity and resilience in agriculture
2. Employment and skills development
3. Inclusive human resource development and social justice
4. Manufacturing and services
5. Urban Development
6. Energy security
7. Infrastructure
8. Innovation, research, and development
9. Next generation reforms

Personal Income Tax Adjustments

• New Tax Regime Changes
  • Standard deduction for salaried employees: Increased from ₹50,000 to ₹75,000
  • Deduction on family pension: Enhanced from ₹15,000 to ₹25,000
  • Revised Tax Rate Structure:
    • ₹0-₹3 lakh: Nil
    • ₹3-₹7 lakh: 5%
    • ₹7-₹10 lakh: 10%
    • ₹10-₹12 lakh: 15%
    • ₹12-₹15 lakh: 20%
    • Above ₹15 lakh: 30%
  • Potential savings: Up to ₹17,500 for salaried employees

Social Security Benefits

• Employers’ NPS expenditure deduction: Increased from 10% to 14% of employee's salary
• Deduction of up to 14% for both private and public sector employees

Capital Gains Taxation

• Simplified Taxation
  • Short-term gains on certain financial assets: 20%
  • Long-term gains on all assets: 12.5%
  • Limit of capital gains exemption on certain financial assets: Increased to ₹1.25 lakh per year
  • Listed financial assets become long-term after 1 year; unlisted and non-financial assets after 2 years
  • Unlisted bonds, debentures, debt mutual funds, market-linked debentures: Tax on capital gains continues per existing rates

Deepening the Tax Base

• STT on futures and options: Increased to 0.2% and 0.1% respectively
• Tax on income from share buybacks

Fiscal Estimates

• Total receipts (excluding borrowings): ₹32.7 lakh crore
• Total expenditure: ₹48.2 lakh crore
• Net tax receipts: ₹2.83 lakh crore
• Fiscal deficit: 4.9% of GDP

Women Workforce Participation

• Setting up working women hostels in collaboration with industry
• Establishing creches and women-specific skill programs
• Promoting market access for women SHG enterprises

Startup Ecosystem and Innovation

• Abolition of Angel Tax for all classes of investors
• Customs duties reduction on gold, silver, and platinum

Urban Housing

• Under PM Awas Yojana (Urban 2.0)
  • Target: Housing for 1 crore urban poor and middle-class families
  • Investment: ₹10 lakh crore
  • Central assistance: ₹2.2 lakh crore over next 5 years
  • Provision for interest subsidy on loans

Stamp Duty Reforms

• Encourage states to lower high stamp duties and consider further concessions for properties purchased by women

NPS Vatalia Scheme

• Contributions by parents/guardians for minors starting an NPS plan
• seamless conversion into a regular NPS account upon reaching adulthood

Amar Kolkata Industrial Corridor

• Development of industrial node at Gaya
• Showcasing ancient economy centers as modern growth hubs
• Road connectivity projects:
  • Patna-Purnia Expressway
  • Bhagalpur Expressway
  • Bodh Gaya-Rajgir-Valmikinagar spur
  • Additional bridge over the Ganga
• Power projects including a new 2,400 MW power plant
• New airports, medical colleges, and sports infrastructure in Bihar

Andhra Pradesh Reorganization Act Commitments

• Financial support for Andhra Pradesh: ₹15,000 crores arranged this year
• Poam Ination project for the state's farmers and food security
• Funding for industrial development in Koparti and Wakal nodes on industrial corridors
• Grants for backward regions in Andhra Pradesh