Budget 2024: MUDRA loan limit for MSMEs increased to Rs 20 lakh, Abolition of angel tax. Key takeaways from Sitharaman's speech

Finance Minister Nirmala Sitharaman on Tuesday tabled the Modi government 3.0's first budget and her seventh budget. In her speech, Sitharaman focused on employment, skilling, MSMEs and the middle class.

The Finance Minister announced a massive package of 5 schemes and initiatives focused on employment, skilling and other opportunities for over 4 crore youngsters.

She also announced some tweaks to the new tax regime of Income Tax. The Finance Minister did not touch the old tax regime in this budget. The new tax regime has lower tax rate but limited deductions and exemptions barring the standard deduction.

She also announced a slew of relief measures for various sectors such as MSMEs as well as the startup ecosystem. Furthermore, Nirmala Sitharaman announced massive budgetary allocations for PM Awas Yojana Urban 2.0 and encouraged states to lower stamp duties for properties purchased by women. 

Top takeaways from Nirmala Sitharaman's budget 2024 speech

1. Sitharaman said that the government will prioritise 7 things in FY2024-25: productivity and resilience in agriculture, skilling, inclusive development, manufacturing and services, urban development, energy security and infrastructure.
2. As per the revised income tax slabs for the new tax regime, those having an annual income of up to Rs 3 lakh will have to pay nil tax; those with an annual income of 3,00,001-7,00,000 will have to pay 5 per cent tax; those with an annual income of 7,00,001- 10,00,000 will have to pay 10 per cent tax; those with an annual income of 10,00,001-12,00,000 will have to pay 15 per cent income tax; those with an annual income of 12,00,001-15,00,000 will have to pay an income tax of 20 per cent; and those earning above Rs 15,00,000 per year will have to pay an income tax of 30 per cent. 
3. She also increased the standard deduction for salaried individuals and pensioners from Rs 50,000 to Rs 75,000. 
4. In order to boost the Indian startup ecosystem, the NDA government has abolished the angel tax for all classes of investors.
5. Finance Minister Sitharaman also offered a shot in the arm to the MSME sector by way of increasing MUDRA Yojana loan limit from Rs 10 lakh to Rs 20 lakh. The limit has been increased for those MSME owners who have availed the loans and successfully repaid. 
6. She also announced a credit guarantee scheme worth Rs 100 crore for MSMEs in the manufacturing sector. MSMEs can take loans without having to give any collateral or third-party guarantee. 
7. Prime Minister's package of 5 schemes and initiatives for employment, skilling and other opportunities, worth Rs 2 lakh crore, for 4.1 crore youth was also announced. 
8. While the first scheme will provide one-month wage to first-timers in all formal sectors, the second scheme is job creation in manufacturing sector. In this scheme, the government will provide incentives to the employers and employees with respect to their EPFO contribution during the first 4 years of employment. 
9. In the third scheme, employers will be reimbursed up to Rs 3,000 per month for a period of 2 years towards their EPFO contribution for each additional employee. All additional employment within a salary of Rs 1 lakh per month will be counted. 
10. While the fourth scheme focuses on skilling 20 lakh youth over a period of 5 years in collaboration with state governments and industry, the fifth scheme is centered on providing internships to 1 crore youth in 5 years in 500 top companies.