Budget disappoints investors, rewards allies, some taxpayers : Check Full Highlights

Changes in capital gains taxes

• Short-term gains tax on specified financial assets increased from 15 per cent to 20 per cent; rates on other financial and non-financial assets remain unchanged
• Long-term gains tax on all assets raised to 12.5 per cent from earlier 10 per cent
• Exemption limit on capital gains for certain listed financial assets increased from Rs 1 lakh to Rs 1.25 lakh annually
• Long-term classification for listed financial assets is over one year; for unlisted and non-financial assets, it’s over two years
• Unlisted bonds, debentures, debt mutual funds, and market-linked debentures will attract applicable capital gains tax rates, regardless of holding period
• The Budget proposed to abolish ‘angel tax’ for all investor classes to support start-ups and innovation.

FY25 Fiscal deficit projected at 4.9 per cent of GDP

• FY25 fiscal deficit projected at 4.9 per cent of GDP, down from 5.1 per cent in the Interim Budget
• Commitment to reduce the deficit below 4.5 per cent next year
• Expenditure for FY25 projected at Rs 48.21 trillion
• Receipts for FY25 projected at Rs 32.07 trillion.

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Customs duty reductions

• Gold and silver duties reduced to 6 per cent, platinum to 6.4 per cent
• Lithium, Copper, Cobalt exempt from Custom Duty
• Expanded list of exempted capital goods for solar cell and panel manufacturing
• Basic Customs Duty on spandex yarn reduced from 7.5 per cent to 5 per cent
• Exempt customs duty on manufacturing of connectors and Oxygen-fused copper.

Duty cuts on medicines and mobile phones

• Customs duty fully exempted on three additional cancer medicines
• Duty on mobile devices and accessories reduced to 15 per cent
• Increased customs duty on plastic products.

Budget allocations for Andhra Pradesh and Bihar

• Social and infrastructure funds announced for Andhra Pradesh, with a backward region grant for three districts
• Package for Vizag-Chennai Industrial corridor
• Rs 15,000 crore financial assistance for Amaravati’s development with promises for future funding
• Rs 26,000 crore for roads and expressways in Bihar
• Funds allocated for temple development in Bihar and Odisha.

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Other essential Budget announcements

• 100 new branches of India Post Payments Bank to be established in the North East
• Twelve new industrial parks to be created
• Rs 10 trillion allocated for providing 1 crore houses to the urban poor and middle class
• FM Sitharaman announces a critical mineral mission and the auction of the first offshore mining blocks.
• Rental housing scheme for industrial workers in PPP mode
• Mudra loan limit increased from Rs 10 lakh to Rs 20 lakh for those who successfully repaid loans under the TARUN category
• Three new employment-linked schemes proposed with Rs 2 trillion allocation for job creation over five years, targeting skills for 20 lakh youth and increased women’s participation
• Rs 1.52 trillion allocated for agriculture and allied sectors
• New 109 high-yielding and climate-resilient varieties of 32 field and cultivation crops will be released for farmers
• Rs 3 trillion allocation announced for women-centric schemes.