Government Announces New Financial Reforms in 2024-25 Budget

Finance Minister Nirmala Sitharaman has revealed the government's plans to increase the capital gains exemption limit to Rs 1.25 lakh annually. She also announced a hike in STT on F&O securities, taxation on income receipts from share buybacks, and the introduction of the Vivad Se Vishwas Scheme 2024.

Finance Minister Nirmala Sitharaman on Tuesday revealed the government's intentions to elevate the capital gains exemption limit on selected financial assets to Rs 1.25 lakh per year, benefitting middle and upper-middle-class segments.

While presenting the 2024-25 Budget, she disclosed an increase in the Securities Transaction Tax (STT) on futures and options (F&O) securities by 0.02 percent and 0.1 percent respectively.

Additionally, Sitharaman mentioned that income receipts from share buybacks will now be taxed in the hands of the recipients. To curtail tax litigation, the finance minister also introduced the Vivad Se Vishwas Scheme 2024.

She further announced a proposed allocation of Rs 10 lakh crore for the PM Awas Yojana - Urban 2.0, aiming to meet the housing needs of one crore urban poor and middle-class citizens.

The minister also outlined plans for 12 new industrial parks under the National Industrial Corridor Development programme.