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Below the Quote on Budget by Pankaj Singh, smallcase Manager and Founder & Principal Researcher at Smartwealth.ai 

“Budget 2024: A Look at What Matters for Your Business and Wallet

The Union Budget 2024 brings ambitious growth targets and a focus on social welfare. Let's see how it impacts businesses and individuals:

Accelerating Economic Growth & Skilling

• The government aims for a 10.5% GDP growth, indicating a positive economic outlook.

• MSMEs get a boost with increased MUDRA loan limits, a Rs. 100 crore guarantees cover scheme, and initiatives for exports and e-commerce.

• Skilling programs aim to empower 20 million youth over five years, addressing the talent gap.

Decreased Taxation on Income; Increased on Trading & Investing:

•   Some relief for salaried individuals: increased standard deduction (Rs. 75K) and higher family pension deduction (Rs. 20K).

•  The new tax regime offers some tax savings with revised income slabs.

•  A standardized capital gains tax of 12.5% simplifies the system, but the withdrawal of indexation benefit might raise concerns for investors.

•  Increased security transaction tax might impact trading activity.

Broader Sectoral Tailwind:

•  Increased spending on agriculture, rural development, and affordable housing benefits these sectors.

•  The real estate sector might see mixed reactions due to increased housing investment but the withdrawal of indexation benefit.

•  Positive outlook for the auto industry with complete exemption from customs duties on lithium (critical for battery manufacturing).

• Consumers can expect lower prices on mobile phones and gold due to reduced customs duty.

Overall, the budget emphasizes growth and job creation while offering some tax relief to individuals. The increased spending on social welfare and infrastructure development is a positive step. However, some tax changes might require further analysis.”

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