As a new entrepreneur and investor moving from a salaried role, it’s important for me to understand the impact of the 2024 Indian budget on my financial decisions. This list reflects my perspective.

Positive Points

1. Personal Income Tax (for New Regime)

• The standard deduction ₹50,000 to ₹75,000.
• New 5% slab for 2.5L to 5Lakh income

2. Simplified Tax Processes:

The budget reports faster processing times for tax returns and the withdrawal of old outstanding tax demands. This move aims to make tax compliance simpler and less stressful, encouraging more efficient financial planning and smoother business operations .

3. Abolition of Angel Tax:

The Angel Tax, which applied to capital raised by unlisted companies from Indian investors when shares were issued at prices higher than the company’s fair market value, has been abolished. This change is expected to stimulate more investment in startups, benefiting entrepreneurs looking to raise capital .

4. Encouraging Digital Transformation:

With initiatives to support research, development, and digital transformation, the budget aims to keep India competitive in the global market. These efforts can help new businesses leverage technology for growth and innovation .

5. Incentives for First-Time Employment:

The budget includes incentives for businesses hiring first-time employees, encouraging companies to create more job opportunities and reduce unemployment. This benefits both employers, through tax breaks, and employees, by increasing job availability .

6. Support for Women Entrepreneurs:

Programs like the ‘Lakhpati Didi’ scheme continue to empower rural women through self-help groups, significantly uplifting their economic status and fostering rural development. This initiative provides financial and training support to women entrepreneurs .

7. Enhanced Focus on Agriculture:

The budget allocates substantial funds to improve agricultural infrastructure and support farmers. Investments in irrigation, storage facilities, and digital farming techniques aim to boost productivity and income for the agricultural sector .

8. Support for Digital Infrastructure:

Investments in digital infrastructure, including broadband expansion and 5G rollout, aim to enhance connectivity across the country. This supports businesses relying on digital platforms and promotes innovation in various sectors  .

Negative Points

1. No Major Changes in Overall Tax Rates:

There are no significant changes in the overall tax rates for individuals and corporations. This might be disappointing for those expecting more tax relief, especially new entrepreneurs seeking to optimize their tax liabilities  .

2. Increased LTCG Tax:

The Long-Term Capital Gains (LTCG) tax on shares and mutual funds has been increased to 12.5%. This hike might deter investment in these financial instruments, affecting potential returns for investors like you  .

3. Higher STCG Tax:

The Short-Term Capital Gains (STCG) tax has been raised to 20%, potentially impacting short-term investors adversely. This increase could discourage frequent trading and short-term investments, affecting liquidity and market dynamics .

4. Continued High Indirect Taxes:

Indirect taxes, including GST, remain unchanged, maintaining the existing tax burden on goods and services. This stability might not offer immediate relief to businesses dealing with high operating costs .

5. Unaddressed Middle-Class Concerns:

Despite some relief measures, the budget is perceived to lack substantial benefits for the middle class, who continue to bear a significant tax burden without additional rebates or incentives. This might affect disposable income and consumer spending, indirectly impacting businesses  .

6. Reduced Disinvestment Goals:

The government has set a lower disinvestment target of ₹50,000 crore for 2024-25, down from ₹61,000 crore in the previous year. This consistent reduction suggests a lack of aggressive measures to privatize public sector undertakings and raise capital for development projects, potentially slowing economic growth .

7. Inadequate Focus on Healthcare:

While not directly related to taxes, the overall healthcare budget remains inadequate, which can have long-term economic impacts. Entrepreneurs and businesses might face higher healthcare costs, affecting employee well-being and productivity  .

8. Limited Capex Increase:

The capital expenditure increase of 11.1% to ₹11.11 lakh crore, accounting for 3.4% of GDP, is considered insufficient given the current infrastructure needs. This might limit the expected economic multiplier effects, affecting long-term business growth  .

9. Limited Tax Relief for Digital Infrastructure:

While there are investments in digital infrastructure, there is no specific tax relief for businesses investing in digital transformation. This might slow down the adoption of new technologies and digital platforms, affecting overall innovation and competitiveness  .

This summary provides a detailed view of the key changes in the 2024 budget, highlighting their potential impact on entrepreneurs and investors. Understanding these nuances is essential for navigating the financial landscape and making strategic decisions in the coming year.