Blockbuster or Disaster? | Budget 2024 EXPLAINED in just 15 minutes

Labour Law Advisor

23 Jul 202416:30

Summary

TLDRThe Indian government's budget for 2024-25, led by Prime Minister Modi, focuses on employment, with new schemes like the 'Plan for All-Round Development' targeting states like Bihar and Andhra Pradesh. It introduces tax reliefs and hikes, new initiatives for students and businesses, and reforms in land and health sectors. The budget also addresses long-term capital gains tax, with changes affecting investments in stocks, real estate, and mutual funds. Additionally, it proposes incentives for startups and alterations in the new tax regime, aiming to boost the economy and provide relief to taxpayers.

Takeaways

😀 The budget presented is for the fiscal year 2024-25, focusing on employment and development with schemes like PM Rozgar Protsahan Yojana and Atmanirbhar Bharat Rozgar Yojana.
📈 The budget aims to provide financial support to states like Bihar and Andhra Pradesh for their development plans.
💼 Special emphasis is placed on employment with new schemes targeting fresh graduates and the manufacturing sector, offering incentives for both employers and employees.
🏫 An internship scheme is introduced to provide opportunities for 1 million youths in top 500 companies, incentivizing companies for internship costs.
🏠 The government announces initiatives to reduce stamp duty on land transactions and digitize land records to increase transparency and reduce fraud.
💰 The budget introduces a new savings scheme, NPS Vaatsalya, for parents to invest in their minor children's future, with tax benefits.
🌟 The government offers a subsidy on import duties for precious metals, aiming to reduce the prices of gold and silver in the domestic market.
📉 Changes in tax rates for long-term capital gains on equities and real estate are announced, potentially increasing tax liabilities for investors.
📈 The budget proposes an increase in the surcharge on short-term capital gains from equities, impacting traders and investors.
💼 For salaried employees, the standard deduction on income tax has been increased, providing some tax relief.

Q & A

What is the focus of the Union Budget 2024 presented by the Modi government?
-The Union Budget 2024 is focused on overall development across India, with special emphasis on certain states like Bihar and Andhra Pradesh, and introducing new schemes for employment and loans.
What are the significant changes in the tax policies as per the budget 2024?
-The budget 2024 has introduced several changes in tax policies, including reductions and increases in tax rates, and the introduction of new schemes and incentives for various sectors.
How does the budget plan to address employment opportunities in India?
-The budget introduces new schemes designed to provide employment opportunities, such as incentives for freshers in manufacturing sectors and internship programs for youth with top 500 companies.
What incentives are provided for businesses and investors in the budget?
-The budget offers incentives for businesses and investors, including tax breaks and subsidies, to encourage investment and business growth.
What is the significance of the 'Plan for All-Round Development' mentioned in the budget?
-The 'Plan for All-Round Development' is a significant part of the budget that aims to provide comprehensive development across various sectors, including infrastructure and social welfare.
How does the budget propose to support the manufacturing sector in India?
-The budget proposes to support the manufacturing sector by providing salary support to freshers joining the sector and reducing the tax burden on employers who increase their employment strength.
What are the key features of the internship scheme introduced for youth employment?
-The internship scheme targets providing internships to 1 million youth in top 500 companies, with the government incentivizing companies for the internships provided.
How does the budget plan to impact the real estate sector?
-The budget introduces changes in stamp duty and land registration processes, aiming to increase transparency and potentially make land prices more affordable for the middle class.
What are the tax implications for investments in gold and silver as per the budget?
-The budget reduces the customs duty on gold and silver, which is expected to lower the prices of these metals, and there is speculation about a possible increase in GST rates on gold.
What is the 'PM Suraksha Bima Yojana' and how does the budget impact it?
-The 'PM Suraksha Bima Yojana' is a government-backed accident insurance scheme. The budget does not directly impact this scheme, but it emphasizes the importance of insurance, including term insurance, for individuals.
How does the budget propose to support startups and their funding in India?
-The budget offers benefits for startups by abolishing angel tax and reducing the tax rate for foreign entities investing in Indian startups, thereby encouraging funding and growth in the startup ecosystem.

Outlines

00:00

📊 Economic Focus and Employment Initiatives in the 2024 Budget

The 2024 budget, led by the Modi government, emphasizes economic development with a focus on employment generation. It introduces various schemes such as the 'Plan for All-Round Development' with a significant allocation for Bihar and provisions for Andhra Pradesh. The budget also addresses tax reductions and increases, aiming to stimulate the economy. New programs are introduced to cater to students, employment, and business owners, promising future impact on India's economy. Specific schemes like the 'Freshers' Salary Support' and 'Employment Linked Incentive Scheme' target fresh graduates and manufacturers, respectively, with salary support and tax benefits. The budget also proposes initiatives for internships, aiming to provide opportunities for 10 lakh youth in top 500 companies, incentivizing companies to hire and train interns.

05:00

🏡 Land Reforms and Gold Market Impacts

The budget addresses land reforms by reducing stamp duty to increase transparency in land transactions and combat fraud. Initiatives include a rural land allotment scheme and a digitization plan for urban lands, aiming to curb black money in land deals and make land prices more affordable for the middle class. Additionally, the budget proposes a reduction in customs duty on gold imports, which could lead to lower gold prices and affect the gold market. There's also mention of a 'PM Suryodaya' scheme for free electricity and a revision of the long-term capital gains tax rate, impacting investors and traders.

10:01

💼 Tax Reliefs and Changes in the New Tax Regime

The budget brings mixed news for taxpayers, with some tax reliefs and increases. It revises the short-term capital gains tax rate and introduces changes to the long-term capital gains tax, affecting investments in stocks, equity, and real estate. The definition of long-term capital gains is altered, and the tax rate for gains from real estate and other assets is increased. Additionally, the budget proposes changes to the tax treatment of dividend income and introduces higher tax rates for securities transactions. There are also benefits for startups and foreign entities, with tax rate reductions aimed at promoting investment and growth.

15:03

💼 Health and Term Insurance Advice for Professionals and Business Owners

The final paragraph shifts focus to personal financial planning, emphasizing the importance of health and term insurance for professionals and business owners. It discusses the benefits of early acquisition of term insurance, highlighting how premiums can increase over time. The speaker recommends comparing policies and choosing the right health and term insurance based on individual needs. A special discount is mentioned for viewers who might be interested in purchasing insurance through a provided link, supporting the channel's efforts.

Mindmap

Keywords

💡Budget

A budget is a financial plan that outlines the government's revenue and expenditure for a financial year. In the context of the video, the budget is a central theme, focusing on the financial plans for the year 2024 by the Modi government. It discusses various schemes and tax implications that are introduced or modified in the budget, affecting employment, business, and individual taxpayers.

💡Employment

Employment refers to the state of being engaged in a paid job or having a job position. The video emphasizes the government's focus on employment generation through new schemes introduced in the budget. It mentions initiatives like the 'Plan for All-Round Development' and incentives for employers in non-manufacturing sectors to hire more, which are aimed at boosting job creation.

💡Taxation

Taxation is the process by which the government raises revenue from taxpayers. The video discusses changes in tax rates and policies in the budget, such as reduced tax on short-term capital gains and increased tax on long-term capital gains. These changes directly impact individuals and businesses, affecting their financial planning and investment strategies.

💡Investment

Investment in the video refers to the allocation of money in assets or other forms with the expectation of generating an income or profit. The script talks about the impact of the budget on investments, including changes in tax rates for different types of investments like equity, real estate, and gold, which can influence investment decisions.

💡Manufacturing Sector

The manufacturing sector is a key component of the economy that involves the production of goods. The video mentions incentives for the manufacturing sector, such as benefits for employers who increase their employment strength, to encourage growth and job creation in this area.

💡Startups

Startups are new businesses that are in the initial stages of development and growth. The video discusses the government's initiatives to support startups, including tax benefits and funding opportunities, which are designed to foster innovation and economic growth.

💡Healthcare

Healthcare refers to the maintenance or improvement of one's health through the prevention, diagnosis, and treatment of diseases. The video touches on the rising inflation in the healthcare sector and the importance of having good health insurance to mitigate future costs.

💡Insurance

Insurance is a risk management tool used to hedge against potential losses. The video emphasizes the need for health and term insurance, explaining how they can protect individuals and their families from financial burdens due to health issues or the untimely death of the breadwinner.

💡Real Estate

Real estate involves property and land related matters. The video discusses the impact of the budget on the real estate market, including changes in tax rates for property transactions, which can influence property prices and affect middle-class homebuyers.

💡Incentives

Incentives are rewards or benefits offered to encourage certain actions or behaviors. The video outlines various incentives introduced in the budget to promote employment, investment, and economic growth, such as tax subsidies for hiring new employees and capital investment.

💡Deficit

A fiscal deficit occurs when a government's expenditures exceed its revenues. The video mentions the government's fiscal deficit target and how it has been managed, which is an important indicator of the government's financial health and its ability to fund public services and investments.

Highlights

The budget for July 2024 presented by the Modi government is the first budget of its third term, focusing on a union budget for all of India with special emphasis on certain states.

The budget includes significant allocations for Bihar, with a plan for all-round development covering investments and provisions for farmers.

The budget introduces new tax reductions and increases, aiming to stimulate the economy and provide relief to taxpayers.

Numerous new schemes are introduced, targeting employment, loans, and impacting students, business owners, and investors.

Special focus is given to employment generation with new schemes designed to provide incentives and subsidies.

The budget proposes a scheme to provide a salary support of up to ₹15,000 for freshers in certain sectors.

For the manufacturing sector, the budget offers salary support up to ₹6,000 for two years for new joiners.

Employers in non-manufacturing sectors are incentivized to increase their employment strength with subsidies.

An internship scheme targets providing 1 million youth with internships in top 500 companies, with government incentives to companies.

The budget introduces a new loan scheme for students up to ₹10 lakh for higher education, interest-free.

Land reforms are discussed, including reducing stamp duty and initiatives to increase transparency in land transactions.

The budget proposes a reduction in custom duties on gold and silver, potentially lowering their prices.

The PM Surya Gaurav scheme aims to provide free electricity to 1 crore homes, with 14 lakh applications already received.

Changes to short-term and long-term capital gains tax rates are announced, affecting investors and traders.

The definition of long-term capital gains is altered, reducing the holding period for certain assets.

The budget proposes changes to the taxation of share buybacks and dividends, impacting companies and investors.

The new tax regime introduced last year is revised, with updated tax rates announced for individuals.

The budget provides relief to senior citizens by increasing the deduction limit for health insurance premiums.

The fiscal deficit target is revised downward, and inflation rates are kept stable, indicating a healthy economic outlook.

The budget encourages early adoption of term insurance and health insurance, highlighting the importance of financial planning.