US-India Strategic Partnership Forum Discusses Union Budget 2024-2025
New Delhi [India], August 7: The US-India Strategic Partnership Forum (USISPF) hosted an exclusive interaction on the Union Budget 2024-2025 in the national capital with Finance Secretary, TV Somanathan, and Chief Economic Advisor, V Anantha Nageswaran on Wednesday. The discussion provided USISPF members and leading corporations in the US-India corridor with in-depth perspectives on the Union Budget and India’s economic trajectory and fiscal policies.
The Finance Secretary and Chief Economic Advisor delved into key budget highlights, including significant allocations for infrastructure development, measures to boost digital innovation, initiatives to strengthen financial inclusion, and ease-of-doing measures for foreign investors.
This high-level discussion offered valuable insights into the government’s vision for India’s economic growth and development. It was attended by leading corporations and officials from the US Embassy in India.
The Finance Bill 2024 was passed by Lok Sabha on Wednesday evening with a few amendments moved by the government. This is the first full budget of the NDA government led by PM Modi, following their third successive term win earlier this year.
The Lok Sabha took up discussion on the Finance Bill after the Appropriation Bill for the central government’s expenditure for 2024-25 was passed by the House on Monday. Replying to the debate, Finance Minister Nirmala Sitharaman said the government’s approach has been to simplify tax laws and procedures and enable growth and employment in the country. She responded to points made by members and moved an amendment in the Finance Bill on changes in the capital gains tax on property transactions.
The amendment allows taxpayers to avail either a lower tax of 12.5 per cent without indexation or a rate of 20 per cent with indexation if the property is acquired prior to July 23, 2024, the day the union budget was presented in the Lok Sabha. Sitharaman said the New Income Tax Regime is simpler and offers lower income tax rates for individuals. For the previous Assessment Year 2023-24 till December 31, 2023, about 3.8 per cent of taxpayers opted for the New Tax Regime, which equates to 30.93 lakh individuals from a total of 7.98 crore ITRs filed in the categories of ITR-1 to ITR-4.
The Finance Bill will now be discussed by Rajya Sabha. The passage of the bill will complete the budget process.
Doubts Revealed
US-India Strategic Partnership Forum (USISPF) -: The US-India Strategic Partnership Forum (USISPF) is a group that works to strengthen the relationship between the United States and India. They focus on business, trade, and other important areas.
Union Budget -: The Union Budget is a plan made by the Indian government about how it will spend money and collect taxes for the next year. It includes details on various projects and financial plans.
Finance Secretary -: The Finance Secretary is a top official in the Indian government who helps manage the country’s finances. TV Somanathan is the current Finance Secretary.
Chief Economic Advisor -: The Chief Economic Advisor is an expert who gives advice to the government on economic policies. V Anantha Nageswaran is the current Chief Economic Advisor.
Finance Minister -: The Finance Minister is the government official in charge of the country’s finances. Nirmala Sitharaman is the current Finance Minister of India.
Tax simplification -: Tax simplification means making the rules about paying taxes easier to understand and follow. This helps people and businesses pay their taxes correctly.
Capital gains tax -: Capital gains tax is a tax you pay when you sell something valuable, like a house or stocks, for more money than you bought it for. The government collects this tax on the profit you make.
Finance Bill -: The Finance Bill is a proposal made by the government that includes all the changes in taxes and spending for the year. It needs to be approved by the Parliament.
Lok Sabha -: Lok Sabha is one of the two houses of the Indian Parliament. It is where elected representatives discuss and pass laws.
Rajya Sabha -: Rajya Sabha is the other house of the Indian Parliament. It reviews and suggests changes to the laws passed by Lok Sabha.
