In the 2024 Union Budget, Finance Minister Nirmala Sitharaman announced a reduction in the basic customs duty on components of smartphone to 15 per cent. This move aims to make smartphones more affordable for consumers and boost the mobile industry in India.
The reduction of customs duty on mobile phones and related parts will help smartphone makers reduce the prices of their made-in-India devices. The same will not be applicable for devices imported as Completely Built Units (CBUs).
The government also announced a 100 per cent exemption in customs duty on three specific medicines for cancer patients, making these essential drugs more accessible. There is also relief in customs duty on X-ray tubes and flat panel detectors, aiming to make medical diagnostics cheaper and more accessible.
Navkendar Singh is a Associate Vice President with IDC India said, "This is a very positive step in the right direction. This can possibly ratinalise the prices especially in the mass segments like below 25k and give growth in domestic consumption of phones."
Singh further added, "Moreover, this is a welcome step to give a boost for expansion in device manufacturing capacity in India.
Prabhu Ram, VP - Industry Research Group, CyberMedia Research (CMR) said, "The reduction of basic customs duty on smartphone parts to 15 per cent is a pivotal step in deepening India’s smartphone manufacturing capabilities. This move is anticipated to further bolster local assembly, attract global investments, and position India as a global smartphone manufacturing hub."
Income tax slabs revised
Finance Minister Nirmala Sitharaman has adjusted the tax slabs, providing some relief to taxpayers. Currently, there are two tax regimes available:
Old Tax Regime vs. New Tax Regime
Old Tax Regime: This regime offers a wide range of deductions and exemptions. New Tax Regime: This regime features a lower tax rate but has limited deductions and exemptions, except for the standard deduction.Changes in the new tax regime
Sitharaman introduced significant changes to the New Tax Regime. The primary feature is its reduced tax rate compared to the Old Regime, which still allows for various deductions and exemptions.
New income tax slabs
Up to ₹3,00,000: Nil ₹3,00,001 to ₹7,00,000: 5% ₹7,00,001 to ₹10,00,000: 10% ₹10,00,001 to ₹12,00,000: 15% ₹12,00,001 to ₹15,00,000: 20% Above ₹15,00,000: 30%