The NDA government is now busy preparing for the Union Budget 2024 (full budget). Although the date of presentation of Budget 2024 is not clear yet, it is expected that Finance Minister Nirmala Sitharaman can present it in Parliament on 22 July 2024 this month. Everyone has high expectations from this budget and it also includes relief in capital gains tax. Let us know what indications are being received from the Finance Ministry regarding this?

This indication on capital gains tax

is that the general budget of Modi 3.0 is about to be presented. But people hoping for relief in capital gains tax may be disappointed this time too. According to a report published in Business Today, there is no possibility of review and simplification of the capital gains tax system at present. This proposal cannot be included in the Union Budget 2024-25.

Also Read: Sleeper Vande Bharat: This state can get 2 Vande Bharat sleeper trains, full details

It said that the industry and experts are advocating a comprehensive review and rationalisation of the capital gains tax system across various asset classes, but according to sources, there are indications that the government is currently not keen to undertake such an exercise and change the existing classification.

Long standing demand, not expected at the moment

The report quoted a person familiar with the matter as saying that this is a huge exercise, which will have an impact on various asset classes and investments. Although there has been a demand for it in the last few years, it is not being planned right now and it can be started later. Currently, capital gains tax is levied on long term and short term basis, which depends on the holding period and is different for different asset classes. This tax is levied on stocks, mutual funds and capital assets.

Industry bodies have made this demand

According to sources, this issue has been raised in the pre-budget meeting with Finance Minister Nirmala Sitharaman, but no proposal is likely to come in the budget. Industry body FICCI has appealed to simplify the capital gains tax system in terms of LTCG tax rate and STCG tax rate in its pre-budget recommendations. EY India has also called for simplifying this tax and said that the complexity in its structure should be thought about.

What is capital gains tax and where is it applicable?

As per the Income Tax law, Capital Gains Tax is payable on profits earned from the sale of both movable and immovable assets. Capital gains tax on equity, loans and real estate is applicable at different rates and periods, which helps in understanding whether the gain is short-term or long-term.

The post Budget 2024: Will there be relief on capital gains tax? These are the big indications first appeared on Rightsofemployees.com.

However, several reports suggest that Union Finance Minister Nirmala Sitharaman will present it in the second fortnight of July. According to reports, the monsoon session of Parliament is expected to begin on July 22 and is likely to last till August 9.

Union Finance Minister Nirmala Sitharaman presented the Interim Budget 2024-25 earlier this year before the general elections. Sitharaman will present the full budget for the current financial year after becoming the Finance Minister again in NDA 3.0. During the second term of the Modi government, Sitharaman played an important role in taking forward the economic agenda of the government.

Also Read: New Telecom Act: Big News! New Telecom Act to be implemented form 26th June 2024

Record of presenting 7 consecutive Union Budgets

This will be the first Union Budget under PM Modi’s third term. Sitharaman will become the country’s first finance minister to present 7 consecutive Union Budgets, surpassing former minister Morarji Desai’s record of 6. While serving as India’s finance minister between 1959 and 1964, Desai presented 5 full budgets and one interim budget.

India’s GDP may grow at the rate of 7.2 percent in the financial year 2024-25.

Let us tell you that the Reserve Bank of India (RBI) has increased the GDP growth rate estimate for the current financial year 2024-25 from 7 percent to 7.2 percent.

The post Union Budget 2024: When will the country’s full budget be presented? Know key dates first appeared on Rightsofemployees.com.

Many big announcements can be made for the middle class in this budget. One of these announcements can be about income tax reduction.

Prime Minister Narendra Modi’s government is considering more than 500 billion rupees ($6 billion) of consumption-boosting measures in India’s upcoming budget, Bloomberg reports. This includes a tax cut for low-income individuals for the first time in seven years. Finance ministry officials have discussed proposals to reduce taxes for consumers with the highest spending propensity.

Also Read: 8th Pay Commission: Govt gets proposal for hike in DA, basic pay, pension. Details Here

Who will get relief

Let us tell you that people earning from Rs 5 lakh to Rs 15 lakh are taxed from 5% to 20%. The government can give relief to such people. Apart from this, a new tax slab can also be decided. The details of the plan are still being worked out and a final decision will be taken sometime in July close to the budget after approval from the Prime Minister’s Office. Apart from this, the government plans to stick to its fiscal deficit target of 5.1% of GDP for the current financial year.

Decision on PM Kisan Samman Nidhi

Apart from this, the government can also take a decision on PM Kisan Samman Nidhi. Talks are going on to increase the annual cash payment to small farmers from the current Rs 6,000 to Rs 8,000. Let us tell you that the government has recently released the 17th installment under the scheme. Let us tell you that the government started the PM Kisan Yojana in the year 2019.

The post Union Budget 2024: Modi Govt is considering income tax cuts to boost consumption first appeared on Rightsofemployees.com.