Budget 2024 highlights | Impact on Stock Market | CA Rachana Ranade

Summary

In this informative video, CA Rachana Ranade breaks down the 2024 budget, focusing initially on taxation changes, including adjustments to tax slabs and standard deductions, which could reduce tax outflow for many. She also addresses the impact on capital gains and the implications for stock market investments. The second part delves into the budget's effect on the economy, highlighting key priorities such as rural development, employment, and infrastructure. Lastly, she discusses the potential impact on the stock market, drawing on historical trends and offering insights for long-term investors.

Takeaways

• 📊 The 2024 budget video is divided into three main parts: taxation, the overall economy, and the impact of the budget on the stock market.
• 💼 A special discount is offered on stock market courses using the coupon code 'BUDGET', valid until midnight on the day of the budget announcement.
• 📉 The budget focuses on several key areas including rural development, unemployment, inflation, and the support of MSMEs, among others.
• 💹 Changes to the tax slabs are introduced only for the new tax regime, with the first slab remaining unchanged and the subsequent slabs adjusted to provide tax relief for certain income brackets.
• 📈 The standard deduction for salaried individuals has been increased from 50,000 to 75,000 rupees, and family pension deductions have been raised from 15,000 to 25,000 rupees.
• 📉 The tax rate for short-term capital gains has been increased from 15% to 20%, and long-term capital gains on financial and non-financial assets will now attract a tax rate of 12.5% instead of 10%.
• 🏠 The minimum holding period for assets like property to be considered long-term has been reduced from 3 to 2 years, but the indexation benefit for house property has been removed.
• 📉 The STT (securities transaction tax) rates for futures and options have been increased, which may impact investment in these areas.
• 🌐 The budget addresses the disclosure of assets held in foreign countries, with penalties for non-disclosure now applicable only for assets valued above 20 lakh rupees.
• 🏘️ The government has allocated 2.66 lakh crores for rural infrastructure development, which could positively impact construction and FMCG stocks.
• 📱 Custom duties on gold, platinum, and mobile phones have been reduced, which may lead to lower prices for consumers and affect related stocks.

Q & A

What is the format of the 2024 budget video by CA Rachana Ranade?

The video is divided into three parts: taxation, the overall economy, and the impact of the budget on the stock market.

What is the special discount offer mentioned in the video?

A separate discount is available on the website for stock market related courses, which can be availed using the coupon code BUDGET, valid until 12 midnight of the day the video is released.

What was the expectation from the 2024 budget regarding rural development and unemployment?

Expectations were around rural development, tackling unemployment, addressing inflation, boosting MSMEs, and providing tax relief for individuals.

What changes were made to the tax slabs in the new tax regime?

The first slab remains unchanged. The second slab, previously for income between 3 to 6 lakhs taxed at 5%, now extends to 7 lakhs. The subsequent slabs have also been adjusted upwards, with the 9 to 12 lakh slab now taxed at 15%.

How much could an individual save with the new tax slab changes according to Nirmala Sitaraman Ji?

An individual could save up to 17,500 rupees with the new tax slab changes.

What is the revised standard deduction for salaried employees?

The standard deduction has been increased from 50,000 to 75,000 rupees.

What changes were announced regarding family pension deductions for pensioners?

The deduction for family pension has been increased from 15,000 to 25,000 rupees.

What is the new tax rate for short-term capital gains?

The tax rate for short-term capital gains has been increased from 15% to 20%.

What is the revised tax rate for long-term gains on financial and non-financial assets?

The tax rate for long-term gains on financial and non-financial assets has been increased from 10% to 12.5%.

What is the new holding period for an asset to be considered a long-term asset, specifically for property?

The minimum holding period for an asset to be considered a long-term asset, such as property, has been reduced from 3 years to 2 years.

What changes were made to the tax on buyback of shares starting from 1st October 2024?

Starting from 1st October 2024, any income on buyback of shares will be taxable in the hands of the recipient, whereas it was previously exempt.

What were the nine priorities discussed in the budget speech?

The nine priorities discussed were agriculture, employment, human resource development, manufacturing and services, urban development, energy infrastructure, innovation and R&D, and next-gen reforms.

How much has been allocated for the development of rural areas to enhance rural infrastructure?

A substantial sum of 2.66 lakh crores has been allocated for the development of rural areas.

What is the impact of the reduction in custom duty on gold and platinum?

The reduction in custom duty on gold to 6% and platinum to 6.4% could positively impact stocks related to these industries and potentially lead to a drop in the purchasing price for individuals.

What is the potential impact of the budget on the stock market based on historical trends?

While historical trends show that markets have recovered from post-budget corrections within a few months, the exact impact cannot be predicted, but long-term investors may view corrections as buying opportunities.