LOK SABHA PASSES FINANCE BILL 2024 AMIDST OPPOSITION PROTESTS

Why in the news?

The Lok Sabha passed the Finance Bill, 2024, with key amendments on LTCG tax, amidst opposition protests over the refusal to remove 18% GST on insurance premiums.

Finance Bill, 2024: Key Provisions:

  • Lok Sabha passed the Finance Bill, 2024, with 45 official amendments.
  • Amendment allows taxpayers to choose between the new 12.5% LTCG tax rate without indexation or the old 20% rate with indexation for properties bought before July 23, 2024.

Finance Minister’s Defence:

  • Nirmala Sitharaman dismissed Opposition claims of heavy middle-class taxation.
  • Emphasised the Budget’s focus on investment promotion and middle-class benefits.
  • Cited reduced customs duties, increased tax exemption limit on long-term capital gains, and simplified tax regime.

Opposition’s Criticism and Protest:

  • Opposition MPs protested the government’s refusal to consider an amendment to remove 18% GST on insurance premiums.
  • Sitharaman noted 75% of GST collected goes to states and that any GST amendment requires GST Council approval.
LOK SABHA PASSES FINANCE BILL 2024 AMIDST OPPOSITION PROTESTS, UPSCsource:middleprep
About Union Budget 2024:

  • Annual Presentation: Presented on February 1 by the Finance Minister in the Lok Sabha.
  • Preparation: Prepared by the Department of Economic Affairs, Ministry of Finance.
  • Classification: Divided into Revenue Budget (government income) and Capital Budget (assets and liabilities).

Budget Parts

  • Part A: Macroeconomic section, government schemes, and priorities.
  • Part B: Finance Bill, taxation proposals (e.g., income tax revisions).
  • Finance Bill: A Money Bill as defined in Article 110; Speaker determines its status.

Constitutional Provisions

  • Article 112: Union Budget as the Annual Financial Statement.
  • Key Documents: Annual Financial Statement (Article 112), Demands for Grants (Article 113), Finance Bill (Article 110), Fiscal Policy Statements under FRBM Act, 2003.

Additional Documents:

  • Expenditure & Receipt of Budget
  • Expenditure Profile
  • Budget at a Glance
  • Memorandum Explaining Finance Bill Provisions
  • Output Outcome Monitoring Framework
  • Key Features of Upcoming Financial Year Budget
  • Implementation of Previous Budget Announcements

Associated Article:

https://universalinstitutions.com/budget-2024/