Key highlights to expect in interim Budget 2024

In the upcoming interim Budget 2024, Union Finance Minister Nirmala Sitharaman is expected to make key announcements, according to market observers. The full budget for the financial year 2024-25 will be revealed after the 2024 Lok Sabha elections. While no spectacular announcements are anticipated this year, 6 significant areas are under scrutiny:

Interim Budget 2024 Expectations: Key Highlights

1. Potential enhancements to the National Pension System (NPS) for senior citizens to make it more attractive, with extended tax concessions on contributions and withdrawals.

2. Expected announcements regarding the Pension Fund Regulatory and Development Authority (PFRDA) seeking parity with the Employees' Provident Fund Office (EPFO) on taxation for employer contributions.

3. Anticipation of a substantial increase in the agricultural credit target to ₹22-25 lakh crore in the next fiscal year, ensuring broader access to institutional credit for eligible farmers.

4. Potential expansion of the Production-Linked Incentive (PLI) scheme to encompass sectors like garments, jewelry, and handicrafts to stimulate the manufacturing sector.

5. Consideration of imposing income tax on affluent farmers to address fairness in the taxation structure, following financial support for poor farmers.

6. Possible extension of the concessional 15 percent income tax rate for corporates establishing new manufacturing units until March 31, 2025, to encourage private investments, as suggested in EY's 2024 Budget expectation report.

Also Watch: Interim Budget likely to increase subsidies for PM Suryoday Yojna: Report