India’s Union Budget 2024: A Strategic Push for Jobs, Tax Simplification & Capital Market Reforms
The Union Budget 2024 strikes a deliberate balance between economic pragmatism and political necessities, signaling India’s ambitions toward a $5 trillion economy. At its core, this budget focuses on employment generation, formal sector growth, and investor confidence—making it especially relevant to businesses, startups, and the financial sector. With a sharp 8.2% GDP growth fueling higher tax revenues, the Finance Minister has smartly used this fiscal cushion to lower the fiscal deficit to 4.9% and boost capital expenditure to 3.4% of GDP.
Key Highlights:
- Major reforms in capital gains taxation and the abolition of the contentious angel tax promise to revitalize startup and investment ecosystems.
- TDS/TCS simplifications and rationalized surcharges aim to ease compliance for both corporates and individuals.
- Buybacks now taxed as dividends and mutual fund classifications revamped—signaling deeper scrutiny in capital markets.
- Indirect tax tweaks focus on promoting domestic manufacturing and correcting inverted duty structures.
- The “Vivad se Vishwas 2024” scheme seeks to reduce tax litigation and improve resolution timelines.
