New Delhi

Presenting her eighth consecutive Union Budget, Finance Minister Nirmala Sitharaman announced key initiatives aimed at benefiting the middle class, gig workers, students, and marginalised sections. Her vision for ‘Viksit Bharat’ includes income tax relief, a social security plan for gig workers, and major educational reforms.

In a significant boost to the middle class, FM Sitharaman announced that no income tax will be payable for incomes up to Rs 12 lakh, and Rs 12.75 lakh for salaried taxpayers, including the standard deduction. The new tax regime features revised tax slabs:

• Rs 0-4 lakh: Zero tax

• Rs 4-8 lakh: 5%

• Rs 8-12 lakh: 10%

• Rs 12-16 lakh: 15%

• Rs 16-20 lakh: 20%

• Rs 20-24 lakh: 25%

• Above Rs 24 lakh: 30%

Additionally, the tax deduction at source (TDS) rates will be rationalised, and the tax deduction limit for senior citizens will be doubled to Rs 1 lakh. The time limit to file an updated return has been extended from two to four years. The threshold for collecting TDS on remittances under the Liberalised Remittance Scheme (LRS) has been increased from Rs 7 lakh to Rs 10 lakh, while the annual TDS exemption limit on rent has been raised to Rs 6 lakh. Furthermore, withdrawals from National Savings Scheme (NSS) accounts on or after August 2024 will be tax-exempt.

To bridge educational gaps, broadband connectivity will be provided in all government secondary schools. This initiative aims to bring students at par with their private school counterparts and open new opportunities for learning.

“50,000 Atal Tinkering Labs will be set up in schools to foster curiosity and scientific temper,” Sitharaman stated. Additionally, the Bharatiya Bhasha Pustak scheme will be implemented to help students understand subjects in their regional languages.

Higher education infrastructure will also be expanded, with additional capacity created in five IITs established after 2014, benefiting 6,500 students.

A new social security scheme for gig workers was also announced. Gig workers on online platforms will receive ID cards via the e-Shram portal and will be covered under the PM Jan Arogya Yojana for healthcare benefits, expected to support around 1 crore workers.

The PM SVANidhi scheme, benefiting street vendors, will be revamped with enhanced loans and UPI-linked credit cards with a Rs 30,000 limit.

Reiterating the government’s commitment to addressing the needs of the poor, farmers, women, and youth under the GYAN (Garib, Yuva, Annadata, and Nari Shakti) initiative, Sitharaman emphasised that the budget aims to meet their aspirations and promote inclusive growth.

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The Budget Session of Parliament, which commenced on January 31, will be conducted in two phases. The first phase runs until February 13, and the second will take place from March 10 to April 4.