Indian Union Budget Overview

Questions and Answers

What is the new limit of exemption for capital gains on financial assets as proposed?

Rs.1 lakh per year

Rs.1.25 lakh per year (correct)

Rs.2 lakh per year

Rs.1.5 lakh per year

Which tax has been abolished to foster the Indian start-up ecosystem?

Capital Gains Tax

Angel Tax (correct)

Securities Transaction Tax

Dividend Distribution Tax

What will the new employer deduction limit for contributions to the National Pension System (NPS) be after the proposed change?

15%

14% (correct)

13%

12%

What tax rate will short-term gains on financial assets attract after the changes?

20% Signup and view all the answers

Which of the following statements about the proposed changes in capital gains taxation is correct?

Long-term gains on all assets will attract a tax rate of 12.5%. Signup and view all the answers

What is the primary purpose of abolishing the Angel Tax?

To strengthen the Indian start-up ecosystem Signup and view all the answers

How much can employers currently deduct from an employee's salary for NPS contributions?

10% Signup and view all the answers

What is the tax treatment for the difference when startups issue shares above their fair market value?

Treated as regular income Signup and view all the answers

What is the nominal GDP growth rate for 2024-25 and its components?

10.5% and Real growth and inflation Signup and view all the answers

What is the estimated Fiscal Deficit for the Budget Estimate of 2024-25 as a percentage of GDP?

5.6% Signup and view all the answers

Which of the following best describes what a fiscal deficit measures?

The difference between the government's total expenditure and its total revenue, excluding borrowings. Signup and view all the answers

Who became the first finance minister in India to present seven consecutive Budgets?

Nirmala Sitharaman Signup and view all the answers

What was the revised Fiscal Deficit target for 2023-24?

5.8% Signup and view all the answers

How many Budgets did Morarji Desai present during his term?

10 Signup and view all the answers

Which component is NOT included in the nominal GDP growth rate for 2024-25?

Interest rates Signup and view all the answers

What is the significance of the fiscal deficit in economic policy?

It indicates the economic health and fiscal discipline of the government. Signup and view all the answers

What significant change did Arun Jaitley make regarding the presentation of the Union Budget in 2017?

He moved the date to February 1. Signup and view all the answers

Which body is primarily responsible for producing the Union Budget?

Budget Division of the DEA Signup and view all the answers

Which of the following documents is NOT part of the list presented to Parliament?

Revenue Report Signup and view all the answers

Which article of the Constitution of India mandates the existence of the Contingency Fund of India?

Article 267 Signup and view all the answers

Who presented the first Union Budget of independent India?

R.K. Shanmukham Chetty Signup and view all the answers

The documents mandated under the Fiscal Responsibility and Budget Management Act include which of the following?

Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement Signup and view all the answers

Which financial bill is required to be passed along with the Union Budget?

Appropriation Bill Signup and view all the answers

When was the Budget first introduced in India?

April 7, 1860 Signup and view all the answers

Which irrigation project has been prioritized for early completion in Andhra Pradesh as per the 2024 Budget?

Polavaram Irrigation Project Signup and view all the answers

Which statement about bank credit to MSMEs is accurate according to the latest Budget 2024?

A new mechanism will facilitate bank credit to MSMEs during their stress period. Signup and view all the answers

What is the increased Mudra loan limit for entrepreneurs under the 'Tarun' category as mentioned in the Budget 2024?

₹20 lakh Signup and view all the answers

How many youth are projected to receive internships over five years as outlined in the Budget 2024?

1 crore Signup and view all the answers

What has the turnover threshold for mandatory onboarding on the TReDS platform been changed to?

₹250 crore Signup and view all the answers

Which of the following statements is true regarding the Mudra loan scheme in the Budget 2024?

The loan limit has been increased from ₹10 lakh to ₹20 lakh. Signup and view all the answers

Which project is NOT mentioned for early completion in 2024 Budget for Andhra Pradesh?

Srisailam Project Signup and view all the answers

What is the focus of the new scheme for internships mentioned in the Budget 2024?

To offer 1 crore internships in top companies. Signup and view all the answers

What is the new standard deduction amount for salaried employees?

Rs. 75,000 Signup and view all the answers

What is the new family pension deduction amount?

Rs. 25,000 Signup and view all the answers

On an income of Rs. 13 lakh, what is the formula for calculating the tax payable?

Rs. 90,000 + 20% of income above Rs. 12 lakh Signup and view all the answers

What is the deduction for family pension before the increase?

Rs. 15,000 Signup and view all the answers

What is the tax structure for income between Rs. 9 lakh and Rs. 12 lakh?

Rs. 45,000 + 15% above Rs. 9 lakh Signup and view all the answers

How much tax will be paid on an income of Rs. 12 lakh?

Rs. 90,000 Signup and view all the answers

What is the tax payable if the income reaches Rs. 15 lakh?

Rs. 1,50,000 + 30% of income above Rs. 15 lakh Signup and view all the answers

What income level is taxed at 5%?

Rs. 3 lakh - Rs. 6 lakh Signup and view all the answers

Study Notes

Union Budget Overview

Arun Jaitley introduced a change in 2017 to present the Union Budget on February 1, moving away from the colonial-era tradition.
The budget consists of the financial bill and Appropriation bill, requiring approval from both houses of Parliament.
The Budget Division of the Department of Economic Affairs in the Finance Ministry is responsible for producing the budget.

Key Budget Documents

Annual Financial Statement (AFS)
Demands for Grants (DG)
Finance Bill
Fiscal Policy Statements:
- Macro-Economic Framework Statement
- Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
Expenditure Budget
Receipt Budget
Expenditure Profile
Budget at a Glance
Memorandum Explaining Provisions in the Finance Bill
Output Outcome Monitoring Framework
Key Features of Budget 2024-25
Implementation of Budget Announcements, 2023-2024

Constitutional Mandates

Article 267 authorizes the Contingency Fund of India.
Articles 112, 113, and 110(a) mandate specific budget documents to be presented to Parliament.

Historical Context

India's first budget was presented on April 7, 1860, by James Wilson.
R.K. Shanmukham Chetty presented the first Union budget of independent India in 1947.

Recent Budget Insights

Nirmala Sitharaman made history as the first finance minister to present seven consecutive budgets.
The fiscal deficit for 2024-25 is estimated at 5.6% of GDP, adjusted from a revised estimate of 5.8% for FY24.

Key Fiscal Concepts

Fiscal deficit measures the gap between total expenditure and total revenue, excluding borrowings.
The nominal GDP growth rate for 2024-25 is projected at 10.5%, inclusive of real growth and inflation.

Major Announcements for 2024

Polavaram Irrigation Project is prioritized for early completion in Andhra Pradesh to support local agriculture.
A new mechanism supports continued bank credit to MSMEs during stress periods.
The internship scheme aims to provide opportunities to 1 crore youth over five years.

Tax Changes and Policies

Angel Tax is abolished to strengthen the startup ecosystem.
The limit for employer deductions to the National Pension System (NPS) will increase to 14% of an employee's salary.
Standard deduction for salaried employees is raised to ₹75,000, and family pension deduction is increased to ₹25,000.

Tax Structure Adjustments

New income tax slabs detail how taxes are calculated:
- Income up to ₹3 lakh: Nil
- ₹3 lakh to ₹6 lakh: 5% above ₹3 lakh
- ₹6 lakh to ₹9 lakh: ₹15,000 + 10% above ₹6 lakh
- ₹9 lakh to ₹12 lakh: ₹45,000 + 15% above ₹9 lakh
- ₹12 lakh to ₹15 lakh: ₹90,000 + 20% above ₹12 lakh
- Above ₹15 lakh: ₹1,50,000 + 30% above ₹15 lakh

Summary of Key Points

The budget is a crucial tool for economic planning and policy implementation.
Significant adjustments and new schemes aim to support economic recovery and growth, particularly in sectors like MSMEs and agriculture.
Continued emphasis on fiscal responsibility and accountability shapes the budget's architectural framework.

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Description

This quiz covers key changes in the practice of presenting the Indian Union Budget, particularly focusing on the transition initiated in 2017. It highlights the roles of the Finance Minister and the Budget Division of the Department of Economic Affairs as well as relevant constitutional provisions. Test your knowledge on the budgetary process and its historical context.