Finance Minister Nirmala Sitharaman presented the interim budget for the fiscal year 2024-25 on February 1, 2024. This interim budget, ahead of the Lok Sabha Elections scheduled for April-May, is referred to as a Vote on Account. In her budget speech, the finance minister announced the withdrawal of all outstanding disputed direct tax demands up to Rs 25,000. This measure aims to enhance the ease of living for taxpayers and is expected to benefit approximately one crore taxpayers, as stated by the minister.
Key Announcements in Union Budget 2024 That Could Benefit You
Despite facing various challenges, the PM Awas Yojana (Gramin) persevered and successfully achieved its target of nearly 3 crore houses. Looking ahead, the scheme aims to take on an additional two crore houses over the next five years.
To address housing needs for the middle class, especially those living in rented accommodations, slums, chawls, and unauthorized colonies, the government plans to introduce a scheme facilitating home ownership or construction. This initiative is expected to free up encroachment-prone areas like slums, easing the process of redevelopment.
The allocation for capital expenditure (Capex outlay) is set to increase by 11.1% to Rs 11,11,111 lakh Cr, constituting 3.4% of GDP. This boost in funding is poised to unlock opportunities for real estate development, primarily through infrastructure upgrades and new projects.
Transit-oriented development in urban areas is anticipated to stimulate housing demand and potentially elevate residential prices.
The development of iconic tourist centers is likely to benefit the hospitality sector, encompassing hotels and restaurants of various categories. Additionally, long-term loans proposed to states for tourism development could further bolster this sector.
Extending tax benefits to startups for another year may rejuvenate office real estate.
Also read: Union Budget 2024: What is the New Income Tax Slab?
Outstanding direct tax demands up to Rs 25,000 for the period up to the financial year 2009-10, and up to Rs 10,000 for the financial years 2010-11 to 2014-15, have been withdrawn. This measure is anticipated to benefit approximately one crore taxpayers.
In line with the Prime Minister’s commitment made on the historic occasion of the consecration of the Ram Mandir in Ayodhya, the government plans to enable one crore households to access up to 300 units of free electricity per month through rooftop solarisation. Anticipated benefits include:
a) Savings of up to Rs 15,000-18,000 annually for households through free solar electricity and the ability to sell surplus energy to distribution companies.
b) Facilitation of electric vehicle charging.
c) Creation of entrepreneurship opportunities for numerous vendors involved in the supply and installation of solar panels.
d) Generation of employment opportunities for skilled youth in manufacturing, installation, and maintenance roles within the solar energy sector.