The share market is the topic of these WhatsApp groups. More and more people are using WhatsApp groups to share financial insights and trading advice. Even well-established businesses specialise in stock trading.
A useful tool for communicating with multiple individuals at once is a WhatsApp group. Dealers can now more easily and swiftly exchange ideas and information with one another. In order to improve as traders, group members can also ask questions and offer criticism. Certain organisations focus exclusively on stock trading. Links to share market-related WhatsApp groups and groups are exchanged.
Join a Share Market group is very easy. Click on the Join Button. Click any of the links and join the group. After joining the group you are ready to chat with all participants.
This book is about how money affects a person’s behavior. accordingly in his book Morgan housel tells about the behavior impact of persons by money and how money impacts people’s mind and behavior .
Here are engaging summary of the book The Psychology Of Money.
1.No One Is Crazy:-
Credit-bookiestalk
No one is crazy as you think there are probably the mind set and situation are more different than you think it is people experience situation and condition define how they behave with money probably someone decision is sounds crazy to you but that’s is the best for them them we don’t know what that person have gone thru the life and in what condition they are probably there are thinking what you even can’t imagine for example in some americans spend their money on lottery , movies and video games and most of them are very poor . The lowest- income household in the US on average spends $412 a year on lottery tickets , four times the amount of those in the highest income group . those who say they can’t come up with $400 in an emergency,
That seems crazy to me . it probably seems crazy to you , too. But I’m not the lowest income group . you are likely not either so we can’t grasp the subconscious reasoning of low – income lottery ticket buyers.
But stain a little and , you can imagine it going something like this: – we live saving and paycheck seems so out of reach we can’t afford nice vacations , new cars , health insurance , or homes in safe neighborhoods cant put our kids through college without dripping debt. We are paying for a dream , and you may not understand that because you are already living a dream. That’s why we buy more tickets than you do.
We do crazy stuff with money because we are new to this game. what looks crazy to you might make sense to me. But no one is crazy, we all make decisions based on our unique experience that make sense to us in a given moment Now lets move to 2 chapter luck & risk as nothing as good or as bad as it seems.
2.Luck & Risk:-
Luke and risk are both sibling , there both are reality guide by fores and individual efforts
Housels told a story about bill gates, how once said in an interweave that if there had been no lakeside , there would have been no Microsoft . as most collage and schools did not have a computer anywhere near as advance as bill gates had access too in eight grad . and his two friends kent evans , and paul allen three of them are smart enough and had plan to go collage together unlike paul allen , kent sharded bill’s business mind and endless ambition he had said that “ we would have kept working together.
I’m sure we would have gone to college together “ he could have been founding partner of microsoft with gates and allen but it never happened ket died in a mountaineering accident before he graduated high school. Gate experienced one in a million luck by ending up at lakeside . Kent even experienced one in a million risks by never getting to finish what he and Gates set out to achieve .
There are lots more stories like this about luck and risk how a two startup owners end up on two sides of reality if some startup works and other don’t that doesn’t means that who get bankrupted don’t work harder for their dreams there have not puts the effort and knowledge that required but may be sum have been lucky in some stage of time and end up being successful and other one may end up on the risk side and end up being bankrupt .
But two things can put you in better direction
Be careful who you praise and admire. Be careful who you look down upon and wish to avoid becoming.
Therefore , focus less on specific individual and case studies and more on board pattern
More important is that as much as we recognize the role of luck in success , the role of risk means we should forgive ourselves and leave room for understanding when juging failures .
Now let’s look at the stories of two men pushed their luck in chapter 3 never enough (when rich people do crazy things)
3.Never Enough
Some people will never get enough of anything and the money numbers of those people are quite high so here Housel offers two examples of the danger of not having enough, and what they can teach us.
Gupta ceo of mcKinsey , he was from a slum of kolkata then he became one of the most successful business alive. But he never felt enough of what he had. By 2008 Gupta was reportedly worth $100 million. well it’s an unfathomable amount for most he could have anything he wanted in life.
Rajat gupta wanted to be a billionaire and he wanted it badly that he even keep that on sale what he had in hope and greed of more he lost what he had heard all this time he got arrested for insider trading . he is not the only person who did this there are more examples of persons like Bernie Madoff’s non -fraudulent business was by any measure a huge success . it made him huge-and legitimately- wealthy.
It just does not make sense if you risk something that is important to you for something that is unimportant to you. So house write three thing to keep in mind if you are one of them
The hardest financial skill is getting the goalpost to stop moving
Social comparison is the problem here
“Enough is not too little
There are many things never worth risking , no matter the potential gain
Let’s give you a quick understanding of what he means by these four things first , if your expectation is raised by the result. There is no logic in striving for more. you will feel the same after putting extra you will end up in a cycle of more and more . its never ending cycle until it get everything you have now .a second social comparison is that it’s a beatel to won and the best way to win it not to fight – to accept that you might have enough , even if its less then around you it’s still enough , realizing that the opposite- an insatiable appetite for more – will push you to the point of regret . the inability to deny a potential dollar will eventually catch up to you . forth there are many thing that not worth risking *reputation is invaluable , freedom and independence are invaluable, family and friend are in valuable , being loved by those who you want to love is invaluable , happiness is invaluable.best shot at keeping these things is knowing when it’s time to stop taking risk that may harm them
The good thing is that the most powerful tool for building enough is remarkable simply , and doesn’t require taking risks that could damage any of these things . that’s the next chapter chapter 4 confounding compounding
4. Confounding Compounding
In this chapter Morgan housel describes how small things matter a lot. it’s like a snowflake that’s small and practically weightless now, but over time, countless snowflakes accumulate to form glaciers. These huge glaciers may even sculpt whole landscapes, cutting valleys and moving continents. Even the simplest things may add up to become something huge over time!. That is how compounding works if a little growth serves as the fuel for the future . a small starting base can lead to results so extraordinary they seem to defy logic . it can be so logical – defying that you can underestimate what possible where growth comes from , and what it can lead to. . there is an example of warren buffett . warren Buffett’s net worth is $84.5 billion. Of that $84.2 billion was accumulated after his 50th birthday, $81.5billion came after he qualified for social security . in his mid 60s.
He was a phenomenal invest . but you miss a key point if you attach all he’s success is that he’s been a phenomenal investing in his 30 he had net worth of $ 1 million , or $9.3 million adjusted for inflation. All warren buffett’s financial success can be tied to the financial base he built in his pubescent year and the longevity he maintain in his geratic years . his skill is investing , but his secret is time
That’s how compounding works
A good investment isn’t necessarily earning the highest return . because the highest return tend to be one -off hits that can’t be repeated . it’s about earning pretty good return that you can stick with and which can be repeated for the longest period of time . that’s when compounding runs wild.
The Opposite of this – earning huge return that can’t be held onto – led to tragic stories. What housel tells in the next chapter 5 getting wealthy vs. staying wealthy.
5. Getting Wealthy VS Staying Wealthy
In this chapter housel says that how to get wealthy this is what everyone tell about but no one raises a top on how to stay wealthy that’s a topic we don’t discuss enough. Housel tells a story about two investors, jesse livermore. he was the greatest stock market trader of his day born in 1877, he became a trader before most people knew you could do such a thing. The stock market crash that year that unshed in the great depression cemented his legacy in history . but in a stroke of genius and luck, he had been shorted the market, better that stock would decline. And this his this decision saved him from a huge loss.
After his 1929 blow out livermore , overflowing with confidence , made larger and larger bets . he wound up far over his head , in increasing amounts of debt and eventually lost everything in the stock market . another investor is Michael moritz , the billionaire head of sequoia capital.moritz mentions longevity , nothing that some VC firms succeed for five or then year , but sequels have prospered for four decades. Cus his mind set was like “ we assume that tomorrow won’t be like yesterday we can’t afford to rest on our laurels . we can’t be complacent . we cant assume that yesterday’s success translates into tomorrow’s good fortune”. here housel says that surviving this should be the biggest difference . This should be the cornerstone of your strategy . whether it’s in investing or your career or a business you own.in this chapter he told about three things which apply to a survival mindset
More than I want a big return , I want to be financially unbreakable. And if i’m unbreakable i actually think i’ll get the biggest returns , because ‘ll be able to stick around long enough for compounding to work wonders.
Planning is important, but the most important part of every plan is to plan on the plan not going according to plan
A barbell personality-optimistic about the future, but paranoid about what will prevent you from getting to the future- is vital.
Next chapter 6 another growth in the face of adversity can be so hard to wrap your head around.
6. Tail You Win
You can be wrong half of the time till you make a fortune . In this chapter he tells about how just one thing can change your life naturally, how in your all efforts one effort can be so great that it is capable of changing the whole game,and how Disney’s first studio went bankrupt . their films were monstrously expensive to produce, and financed at outrageous terms. By the mid -1930s Disney had produced more than 400 cartoons. Most of them were short , most of them were beloved by viewers, and most of them lost a fortune. Snow white and the seven dwarfs change everything. The $8 milloin it erran in the first six months of 1938 was an order of magnitude higher than anything the company earned previously .it transformed Disney studios. All company debts were paid off. Keuy got retention bonuses. The company purchased a new state-of-the art studio in burbank. You could say it skill, you could say it luck. But it did change something very big .
When you accept that tails drive everything in business, investing and finance you realize that it’s normal for lots of things to go wrong , break , fail, and fall.
If you’re a good business leader maybe half of your product and strategy idea will work. He said that no one makes good decisions all the time . The most impressive people are packed full of horrendous ideas that are often acted upon. It’s not whether you’re right or wrong that’s important , but how much money you make when you’re right and how much money you lose when you’re wrong. You can be wrong and still make a fortune .
Next chapter, which is chapter 7 “Freedom “ ,tells about how much can make you happy and even happier.
7. Freedoom”
Controlling your time is the highest dividend money pays. People want to money to control what they want. to be free, having their freedom. wake up every morning and say i can do whatever i want today freedom of every single thing and that’s make them happy . Happiness is a complicated subject but everyone’s different but a universal fuel of joy it’s that. People want to control their lives. The ability to do what you want , when you want , with who you want , for as long as you want, is priceless . It is the biggest dividend money pays.
Most people don’t feel happy in today’s world. people work 24 hours in their mind. And after computer become more advance and 24*7 availability of network by this people can work from their home to which lead them to work 24*7 in their mind even when you are taking a rest your mind will be on a word which is still mending in your computer.
Derek Thompson wrote in his book “No one, not a single person in a thousand, said that to be happy you should try to work as hard as you can to make money to buy the things you want. No one said that if you earn more money then you have now it’s a real success , one said you should choose your work based on your desired future earning power” . your family doesn’t want your money anywhere near as much as they want you.
Now , a short chapter on one of the lowest dividend money pays.chapter 8 man in car paradox.
8.Man In The Car Paradox
In this chapter housel say that money can’t buy you respect. Just like if we see someone in a luxury car our attention stays on the car but not the person who is driving it . People tend to want wealth to signal to others that they should be liked and admired. So they spend their money on luxury to be admired by people. but in reality those people often bypass admiring you, not because they don’t think wealth is admirable , but because they use your wealth as a benchmark for their own desire to be liked and admired.
Housel point is here not to abandon. Wealth but subtle recognition that people generally aspire to be respected and admired by others , and using money to buy respect and admiration use empathy it will bring you more respect than horsepower ever will.
The next chapter, chapter 9 is about ferraris . another story about the paradox of fast cars in the next chapter.
9.Wealth Is What You Don’t See
Spending money to show people how much money you have is the fastest way to have less money.
Richness is what you can see like luxury cards , big mansions, luxury clothes but wealth is what you can’t see like investment , property , and business. Wealth is financial assets that have not yet been converted into stuff you see . singer Rihanna nearly went bankrupt after overspending and sued her financial advisor . the advisor responded :” was it really necessary to tell her that if you spend money on things , you will end up with the things and not the money . well you can laugh but ya it is necessary to tell them . The problem for many of us is that it is easy to find rich role models .
It’s hard to find wealthy ones because by definition their success is more hidden. The world is filled with people who look modest but are actually wealthy and people who look rich who live at the razor’s edge of insolvency. Keep this in mind when quickly judging other’s success and setting your own goals.
Now a question arises if wealth is what you don’t spend , what good is it ? well the next chapter is about convincing you to save money.
10. Save Money:-
In this chapter Morgan housel convinces every person to save money it would not take long but it’s an odd task , inst it ?. He categorizes people into three groups those who save, those who don’t think they can save, and those who don’t think they need to save.
The first idea- simple , but easy to overlook -is that building wealth has little to do with your income or investment return, and lots to do with saving rate.:- By saving, you create a buffer, giving yourself options and control over your future. Without savings, you’re at the mercy of whatever life throws at you, but with even a modest amount set aside, you’re prepared to handle unexpected situations on your terms.
More importantly – The value of wealth is relative to what you need. :- Wealth is only as valuable as what it can provide for you. If it covers what you truly need, it’s enough—even if it’s not a huge amount.
Past a certain level of income– what you need is just what sits below your ego.:-Once you reach a comfortable income, wanting more is often about satisfying ego, not real needs. It’s about impressing others, not improving your life.
So people’s ability to save is more in their control than they might think:-People can save more than they realize—it’s often about adjusting habits, not just income. Small changes in spending can lead to big savings over time.
And you don’t need a specific reason to save:-You can save simply to be prepared— No special reason needed. Savings give you options and peace of mind for whatever the future brings.
That flexibility and control over time is an unseen return on wealth- savings gives you freedom and choices over time, which is a valuable benefit. This control is like an invisible reward that wealth brings.
And that hidden return is becoming more important hidden benefit— Freedom and choice from savings—is increasingly valuable today. Life’s uncertainties make flexibility more crucial than ever.
In all these ideas housel is trying to make it understand that how important saving is . having more control over your time and options-– is becoming one of the most valuable currencies in the world.
That’s why more people can, and more people should , save money.
11. Reasonable>Rational
In These chapters Morgan Housel stresses that people make financial decisions based on their own histories, attitudes, and life experiences, rather than pure reasoning. He contends that being “reasonable” with money—making decisions that seem right to you personally—can frequently outperform strictly “rational” financial advice. Housel says that, while flawless judgments are not always achievable, actions that are consistent with your beliefs and allow you to sleep soundly at night are more sustainable and gratifying in the long run.The key takeaway is that understanding your own values and feelings about money leads to more satisfyinh action . Essentially, he encourages readers to prioritize what feels right for them over what might be seen as the most logical approach.
12 . Surprise
In this chapter housel explain that how unexpected event can change your life he said that future is unexpected and filled with surprise – it can be positive and negative he euncraged us to be more optimistic and positive and make flexibility in there financial plane . he says to dangerous things happen when you rely too heavily on investing history as a guide to what going to happen next,
You’ll likely miss the outlier event that moves the needle the most :-He discusses the way individuals tend to focus on typical patterns and trends while overlooking the uncommon occurrences that might have the greatest impact. The notion is captured in these lines:
History can be a misleading guide to the future of the economy and stock market because it does’’t account for structural changes that are relevant to today’s world:-history is often a poor guide to the future of the economy and stock market because it fails to account for structure change. the most significant changes often came form factors that were not present in previous data
That does not means we should ignore history when thinking about money. But specific trends , specific trades , specific causal relationships about markets. And what people should do with their money is always an example of evolution in progress. History is not prophets.
After this question arises , then how should we think about and plan for the future ? housel explain it in next chapter chapter 13 room for error.
13. Room For Error
It’s not possible to predict the future related to money because the economy changes according to time. There is two examples of how a room for your errors is important to save you from upcoming loss. Bill gates understand it well he did came up with this incredible conservative approach he told “ i wanted to have enough money in the bank o pay a year’s worth of payroll even if we didn’t get any payment coming in “ . and then in other hand at the time of world war second german tank unit was reserved on grassland outside the city.
When tanks were desperately needed on the front line , something happened that surprised everyone: almost none of them worked out of 104 tanks in the unit, fewer than 20 were operable. Engineers quickly found the issue mice had nested inside the vehicles and eaten away insulation covering the electrical system. You can imagine disbelief . This almost certainly never cross ther mind . you can plan for every risk expect the thing that are too crazy to cross your mind always have room for errors.
Now the next chapter is about how the most important part of the plan is that your plan is not going according to your plan chapter 14 you’ll change.
14.You’ll Change
In this chapter housel tell about how humans mind change eventually Consider someone who begins a job in finance with the goal of earning a high salary. Individuals acquire experience and begin to prioritize work-life balance, job satisfaction, and personal fulfillment over financial gains.
Individuals may elect to pursue a less profitable but more meaningful profession in a non-profit organization or a field that interests them. We should also come to accept the reality of changing our mind . Embarrassing the idea that financial goal made when you were a different person should be abandoned without mercy versus put on life support and dragged on can be a good strategy to minimize future regrets . the quicker it’s done, the sooner you can get back to compounding.
Next chapter is about compounding’’ is price of admission
15. Nothing Is Free
In this chapter the housel says that if you want it then you have to pay for it too . like if you want to buy a car then there are three options: first give the full money and buy the car , second if you have less money then buy a second hand car , third is stale it.
Most people don’t choose third option because they know the consicuance of it just like this in investing . number one you have to pay and accept that in share market up and down is its nature . second is buy assets with low risk.if you what to earn more profit in less time then use cleverness and strategy . but fun fact is that most of the people use strategy like stealing a car they what to sell and buy shares without any research In the pursuit of becoming rich, they often lose the money they have.
According to Housel Before investing in the market, understand it thoroughly. otherwise, you have to bear the loss and pay a heavy price.
16 . You & Me
Inyhthis charter housel says every person is different from each other . Their expectations , wishes and wants are different and the same happens with investing. every person is different. Like there is an example in a book. people can look at yahoo! Stock in 1999 and say”that was crazy ! a zillion times revenue! The valuation made no sense!”. But manu investor who owned yahoo.
Stock in 1999 had a time horizon in short that it made sense for them to pay a ridiculous price. A day trader could accomplish what they need whether yahoo! Was at $ 5 a share or $500 a share as long as it moved in the right direction that day . and did. For years.
When a billionaire or successful person appears on news channels offering advice and encouragement . It feels really inspiring to listen to . but in real life. Actually applying advice and suggestion is incredibly challenging , especially due to the high risk involved. we often hesitate to take on such task because we know , better than anyone else , whether we’re really capable of doing them . yet these successful individuals on TV don’t fully understand the unique astrill gel or limitation we might face .
which is why It’s impossible for everyone to become wealthy through the same method, which is why housel says beware taking cues from people playing a different game than you are. their strategy may work for them but could be completely unsuitable for
your own unique gloss, resources . and circumstances.
Now let’s talk about pessimism. in chapter 17
17. The Seduction Of Pessimism
In this chapter Morgan housel explains why pessimism may feel more compelling and credible than optimism. Negative news attracts greater attention because it seems urgent and cautious, helping us feel more prepared for any losses. If you tell someone that everything will be great and they’re likely to either shrug you off or offer a skeptical eye . tell someone they’re in danger and you have their undivided attention. Same happens in investing.
When the stock market drops, people panic and sell, fearing further losses, even though historically, the market has always rebounded over time. But five other things make financial pessimism easy, common, and more persuasive than optimism.
One is that money is ubiquitous , so something bad happening tend to affect everyone and captures everyone’s attention
Another is that pessimiste often extrapolate present trends without accounting for how markets adapt.
A third is that progress happens too slowly to notice, but setbacks happen too quickly to ignore.
Expecting things to be great means a best – case scenario that feels flat. Pessimism reduces expectation , narrowing the gap between possible outcome and outcome you feel great about. Maybe that’s why it’s so seductive, expecting things to be bad is the best way to be pleasantly surprised when they’re not.
Which, ironically, is something to be optimistic about. Now let’s talk about it.
Now let’s talk about stories.
18. When You’ll Believe Anything
People frequently respond rapidly to news and rumors—for example, hearing something unfavorable about Lucklig Company, which prompts them to sell its stock, only to later realize it was a rash action. Similarly, some people may hear positive things about a company and acquire its stock in the hopes of profiting, only to lose money when the firm
The more you want something to be true, the more likely you re to belie a story that overestimates the odd of it being true
Ali hajaji’s son was sick . elders in his yemeni village proposed a folk remedy . shove the tip of the burning stick through his son’s chest to drain the sickness from his body . after the procedure . Hajai told the New York Times “when you have no money, and your son is sick you’ll believe anything” . this situation explains the line perfactully.
Everyone has an incomplete income view of the word . but we form a complete narrative to fill in the gape.
“We’re all biased and have incomplete information, and the stories we tell ourselves to fill in those gaps often lead us to make decisions that reflect those biases.”
The ability to convince yourself that you’re right is a powerful one, but it’s also the easiest way to become ignorant.
This emphasizes the necessity of understanding how tales impact our views and financial decisions.
But like the one who’s confident he knows what’s happening based on what he sees but turns out to be completely wrong because he can’t know the stories going on inside everyone else’s head?
He’s all of us.
Now let’s go to chapter 19 :- all together now
19 All Together Now
In this chapter housel simply summarizes all the chapters we have so far so here housel says what you do with your money doesn’t want to treat you like a dentist isn’t useless. They know. They know the odds. They know what tends to work, even if patients come to different conclusions about what kind of treatment is right for them.
Financial advisors are the same . There is a universal truth in money. Even if people come to different conclusions about how they want to apply those truths to their own finances . with that caveat in place , let’s look at a few short recommendations that can help you make better decisions with your money.
Go out of your way to find humility when things are going right and forgiveness/compassion when they go wrong.
Manage your money in a way that helps you sleep at night
If you want to do better as an investor , the single most powerful thing you can do is increase your time horizon.
Become OKwith a lot of things going wrong. You can be wrong half the time and still make a fortune
Use money to gain your time over your time ,
Be nice and less flashy
Save. just save.you don’t need a specific reason to save
Defne the cost of success and be ready to pay it
Worship room for errors
Avoid the extreme end of the financial decisions
You should like risk and because it pay off over time
Define the game you’re playing
Respect the mess
This is what We’ve read everything up to now, and we’re on the last chapter, which is confession
20. Confessions
Will making important financial decisions are not made in spreadsheets or in textbooks . They are made at the dinner table . They often aren’t made with the intention of maximizing risk ,but minimizing the cause of disappointment for a spouse or child . Those kinds of things are difficult to summarize in charts or formulas, and they vary widely from person to person. what works for one person may not work for another. Here’s are somethings what works for him(morgan house)
How my family think about savings
He values independence over riches, motivated by his parents’ austere lifestyle. Despite increased salaries, he and his wife maintain a modest lifestyle, which allows them to save more. They paid off their mortgage for psychological comfort and maintained cash reserves to cover unforeseen needs, confirming their objective of financial freedom.
In this para housel tell about the second phase of his life where he picked first dividend , but now he adapted a low -cost index fund strategy . because he thinks it gives more chances to achieve goals and it is less risky . he argues that when some people can bet on the market and be successful . but some people can’t do this and simple investments get better results . but constant investing , high saving rate , and patience are complex strategies but it’s more important at the end there focus is financial independence and getting peace of mind not to outperform the market . This approach prioritizes personal comfort and wealth accumulation from a long term perspective.
No matter how we save or invest, I’m sure we’ll always have the goal of independence, and we’ll at night. We think the ultimate goal is mastery of the psychology of money.
*The Parting Note!
In this book “The Psychology of Money “Housel emphasizes that the real secret of effective money management is human psychology, not technical theories. This book provides a new cityscape for traders and investors focusing on resilience, risk management, and long-term patience.This book provides investors and traders a clarity on how human behavior impacts people’s decisions and allows them to avoid impulsive design-making.
The share market is the topic of these WhatsApp groups. More and more people are using WhatsApp groups to share financial insights and trading advice. Even well-established businesses specialise in stock trading.
A useful tool for communicating with multiple individuals at once is a WhatsApp group. Dealers can now more easily and swiftly exchange ideas and information with one another. In order to improve as traders, group members can also ask questions and offer criticism. Certain organisations focus exclusively on stock trading. Links to share market-related WhatsApp groups and groups are exchanged.
Join a Share Market group is very easy. Click on the Join Button. Click any of the links and join the group. After joining the group you are ready to chat with all participants.
We go deeply into the operations of the Securities and Exchange Commission (SEC) in this extensive guide. As authorities in the domain, our goal is to provide you a thorough understanding of the SEC’s responsibilities, impact on investors, and role.
In the US, one of the most important regulatory bodies is the Securities and Exchange Commission, or SEC. It was founded in 1934 with the main goals of safeguarding investors, upholding just and efficient markets, and promoting capital formation.
SEC’s Mission: The goal of the SEC is to guarantee that investors can obtain trustworthy and accurate information in order to make wise investment choices. Additionally, it aims to stop deceptive and manipulative practices in the financial markets and to advance transparency.
The SEC’s Organizational Structure
Gaining an understanding of the SEC’s organizational structure is crucial to understanding how it operates.
Commissioners The Commissioners, who are chosen by the President and given Senate approval, are at the pinnacle of the SEC’s organizational structure. They have staggered five-year terms and are heavily involved in the creation of rules and policies.
Divisions and Offices Each division and office within the SEC is in charge of a different area of financial regulation. These consist of the Office of the Chief Accountant, the Division of Trading and Markets, and the Division of Corporation Finance.
Enforcement Division: Ensuring that people and businesses follow SEC regulations, the Enforcement Division looks into and prosecutes violations of securities laws.
SEC Regulations
In order to preserve investor protection and market integrity, the SEC has put in place a number of regulations. Among the noteworthy rules are the following:
Securities Act of 1933 Securities registration and disclosure are the main areas of regulation under this act. It guarantees that investors are provided with crucial information regarding securities that are put up for public sale.
Securities Exchange Act of 1934 The primary goal of this act is to regulate securities firms and exchanges. Additionally, it requires brokers and exchanges, among other market participants, to register.
Investment Company Act of 1940 The structure and operations of investment companies are governed by this act. By assuring appropriate management and disclosure, it seeks to safeguard investors.
The Role of the SEC in Financial Markets
The SEC is essential to preserving the integrity of the financial markets because:
Investor Protection The SEC protects investors’ interests by enforcing laws and regulations and making sure they have access to all the data they need to make wise decisions.
Market Efficiency The effective operation of financial markets depends on the SEC’s regulations, which support fair competition and market transparency.
Capital Formation By controlling the issuance of securities and facilitating companies’ ability to raise capital through initial public offerings, the SEC promotes capital formation.
SEC Filings and Reporting
Form 10-K A company’s financial performance is thoroughly summarized in this annual report, which also includes financial statements and management’s discussion and analysis (MD&A).
Form 10-Q This quarterly report gives investors an overview of the financial health of the company by offering up-to-date financial data.
Form 8-K :When a company experiences a major event, like a change in leadership or a significant development in their business, they must file this form.
Conclusion
To sum up, the Securities and Exchange Commission (SEC) is a vital component of the financial regulatory framework in the United States. The SEC is essential to maintaining the integrity of financial markets because it safeguards investors, upholds market fairness, and promotes capital formation. Investors, companies, and other stakeholders in the financial sector must all be aware of its rules and functions. To obtain further comprehensive details and support, kindly contact our team of professionals.
The share market is the topic of these WhatsApp groups. More and more people are using WhatsApp groups to share financial insights and trading advice. Even well-established businesses specialise in stock trading.
A useful tool for communicating with multiple individuals at once is a WhatsApp group. Dealers can now more easily and swiftly exchange ideas and information with one another. In order to improve as traders, group members can also ask questions and offer criticism.
Certain organisations focus exclusively on stock trading. Links to share market-related WhatsApp groups and groups are exchanged.
Join a Share Market group is very easy. Click on the Join Button. Click any of the links and join the group. After joining the group you are ready to chat with all participants.
Trader is someone who basically do trading for there financial growth.Trader can buy and sell their positions Within the trading Hours and the word coming from the trading, Trading means where trader buy and sell there assets,for there own financial growth this finomina is known as trading.Overall we all know that before investing money there are some risk.So from this blog you will be able to understand what are the “TOP 7 MISTAKE NEW TRADER MAKE” with a brief explanation in this topic you will be able to understand some risks which new trader make and we will also discuss about how to overcome from this risk.
Why People Chose Trading?
There are many ways to make money in the stock market, such as trading,investing in stocks, and mutual funds. The best way to make money in the stock market is through long-term investment in stocks, as this carries a lower risk compared to other methods and can provide great returns over time. Many people enter the stock market without knowledge, thinking they will become rich overnight, but end up losing money instead. There are many other ways, like trading, that we’ve talked about before In the stock market, there are many types of trading, such as intraday trading, swing trading, options trading, and futures trading. For people who have knowledge of the stock market and want to earn money quickly, they can choose trading.
Type Of Trading
SWING TRADING: Swing trading means where trader sell there assets as Soon as possible they can sell there assets within one day or one month but last for one month.
INTRADAY-TRADING: Intraday trading means in which trader sell there Trade throughtout the day or we can say within a one day this is known as Intraday trading.
SCALP-TRADING: Scalp trading means where trader have to sell or buy There security with in a minute or a second this is known as scalp trading.
Some top 7 mistakes are:
*Pay no attention to risk managemnet * Shortfall of knowledge * Underestimating risk * Rash trading * Ignoring to conduct reserach. * Dosen’t make plan for trading.Therefore there are some risk which new trader should avoide.But new trader should be aware about some precaution that we can avoide these mistake.Some precatuion’s are: * Develope through mistake. * Fousing on trade log.
Pay no attention to risk management
Pay no attention to risk management means trader before investing money in trading usually underestimate the risk which maybe occur in future therefore “always pay attention to risk management.” Trader should be able to understand the stratagies for trading . They have
to follow the guidence of some experties to be more strong in trade market. Here are some ways to uvercome from risk mangement :
Make Plan: Always make best plan or stratgies to for your growth .
Continuously educate yourself: Be updated be conceted to the stock market news to reduce your risk management you may also join some classes for better knowldge in trading like you can join LEARNING SHARKS as well as SMTA also.
Always Be Discipline: Always be discipline means stick to your plan
which you make for trading so it will help you to reduce mistake which may be you do in trading .
what is Over trading
Overtrading is a term that use when we are driven by our emotions and do trades frequently it is called over trading this mistake mostely done by new traders who enter in stock market with expectation to make profit faste it a mistake that every trader done at some point in life. Overtrading can cause a significant amount of money lost if it is not stopped in time .In process of trading every trade cuts some amount of fees for trading platform or trading brokers it become big lose if we do some unnecessary Trading Overtrading has more possibilities that you get lost more money because you spend more time in stock market trade . overtrading is directly linke to emotional trading.
what is emotional trading?
As we talk about in the upper paragraph “new traders who enter in the stock market with the expectation to make profit fast” Emotional trading is a term that is used when a trader gets a trade based on emotions like- fear, greed, and excitement This type of trading has no strategy to follow, no chart analysis. Most traders’ intention in entering the stock market trading or stock market is to earn money quickly.That is why most of the time new traders get into overtrading in overtrading trading people buy a stock that has more price fluctuation this stock is called “penny stock” In this stock you need to buy and sell frequently and their price fluctuates evry point so you need to buys and sell multipal time according to price and it not suitable for new traders who enter the market recently
Shortfall of knowledge
Some new traders often enter the market without prior knowledge or experience, leading many to view trading as gambling. This mindset can result in poor decision-making, and without proper risk management, they can incur significant losses. Risk management is crucial in trading you need to know how much is your capacity to face loose in one trade. You need to make sure you set stop-loss before trade start.
SOME PRECAUTIONS ON TRADING
Develope through mistake:
So our first question is raised in our mind that how we can over come from our mistake.LEARNING FROM OUR MISTAKE is key to being a good trader in market. So here our some points that how we can develope through mistakes. BEING EDUCATED: Being educated means before start trading we should know about what is stock market, what is trading ,what is going on in trading market and being updated about market. There are some way how you can be educated some of them are:
always read newspaper to being updated what are the crruent news regarding trading.
always set goal like what would be your next step in trading.
always keep eye on trading market.
BE CLAM: Be clam means when the new trader start trading very first time they should always be clam for better understanding about the trading. There are some reason why you have to clam your mind while trading.
Always be ready to face loss in trading becuse as a new trader there are some chances that you have to face loss so that time you have to handle this very clamly.
Always make plan with a peace mind , with calm mind this helps you to make great straggies for trading.
Do not be overconfident when you gain some profits in trading you should be clam and follow your next straggies. DO NOT THINK NEGITIVE: Do not think negivite means not always focus on your financial growth, keep start learning from your mistake to grow in Trading.
Fousing on trade log:
Trade log is important as it record all important recodes regading trading time it hepls to make better strategies for better growth in trading it analyze your all data of trading trade log also guide you how you can overcome from your mistake. It also helps you for tax purpose as it has clear history of your trading. Here are some key points of trade log : Analyze your recode: Analyze your record means trader can track there profit and loss in trading. Learning from mistake: Learning from mistake means they can preview there mistake from trade log so that they can not repeat there mistake. Regurality in trading: Regurality in trading means trader should be regular in trading to make profit in trading.
..What strategy is used before trading?
..Let’s talk about strategy. What is Strategy?
..Strategy is a plan or method for achieving a goal or result. so you need to know what is your goal ..before planning a strategy there are many
types of trading
Position Trading
Swing Trading
Day Trading
Price Action Trading
Algorithmic Trading
News Trading
Trend Trading
Range Trading
Based on your goal you can make plans
ex: for position trading in position trading you need to check a few points
.Support and resistance
.breakout
.pullback
.Seek guidence or assitance: Seek guidence and assitance means you should follow the tips of suppoter and mentor as well. There are some key points how the mentor’s can help us or guide us they are:
Sharing there experience: As a mentor they have great knowldge of trading as they do as much trading in there time so by sharing there experience new trader be able to do better in there trading.
Education: The book which is suggested by the mentors are the best guidence for new trader because mentor give the best book as per there knowldge.
How much can I earn every day from intraday with capital 1L
Intraday trading means where traders buy and sell their stock within a day which helps traders to make more profit in less time. However, it’s important to understand the earning method in intraday trading. It depends on many factors like market conditions and the skill level of the traders.
There are many possible strategies to earn money through intraday trading so you can trade money in different cap’s such as large cap , mid cap and small cap and there are some methods which we are going to discussed in our blog so you will be able to earn profit while intraday trading. For beginners with capital of 1L potential. Profits exist but risk too exists this guide will help you to understand how much you can earn from the potential capital you have.
What is intraday trading?
Intraday trading is when traders buy and sell stock on the same day. Because traders don’t maintain positions overnight, there is less chance that events that take place after market hours may cause price gaps during the night. Nevertheless, there are particular difficulties associated with this trading method, including the requirement for rapid decision-making, efficient risk management, and a thorough grasp of technical analysis. It allows traders to avoid excessive risks and negative price differences between the closing price of one day and the beginning price of the following day. It’s an appealing option for traders to seek quick profit, intraday trading earnings depend on several factors including marketing conditions, capital allocation, and risk management.
Some key features of intraday trading
One of the key distinguishing features of intraday trading is that there is no overnight risk for traders because it protects the traders from the overnight risk of price movement caused by news event earning reports or global market development that may negatively affect a trader’s position.
Leverage Broker often provide intraday traders with large amounts of leverage which can help them to gain more profit than their capital allow
Intraday traders have to make quick decisions as it involves short-term pierce movement.
Intraday trading requires technical analysis chat, price patterns, and an indication of predicted price movement to make the right decision.
Traders who do intraday trading focus on higher trading stock on assets that even have enough trading and can easily volume for easy entry and exit
For a better understanding of how intraday trading works here is the example
For example:-
If you have bought 1000 shares at rs 100 in the morning and after some horse soon its price climbed out 150 rs and you sold it at 150 rs then you will earn rs 50,000 profit.
profit = (selling price-purchase price)*numbers of shares
Purchase price = 100
Selling price= 150
Numbers of shares = 1000
Now plug in the values
Selling price – purchase =150-100=50
Profit :
50*1000 = 50,000.
How Much Can You Earn from ₹1,00,000 in Intraday Trading?
There are lots of strategies to do intraday trading from which your earnings can be increased. There is no confirmation of how much you will earn from intraday as it depends on factors which are strategy, market condition, use of leverage, and risk tolerance. Here are some different trading styles that can help
Conservative trading (daily 1-2%)
Conservative trading is an investment strategy that focuses on minimizing risk. Investors who follow this method commonly opt for stable, well-known companies and avoid risky moves, focusing on consistent, long-term growth rather than instant profits. Focus on factors like
Risk management (1-2%) per trade
Trade realistic daily return (0.5 to1%)
Stick to a disciplined
Have a systematic approach for consistent gain
Conservative trading can help you earn around 500rs to 1000rs per day by using capital of 1,00,000.
Moderate trading (daily 2-3%)
when the stocks were sold or bought not at a very high rate nor very low price. Moderate trading has more risk than conservative trading but it also helps to gain more than then conservative trading, moderate trading is neither too risky nor too safe. Moderate trading balance between liability and profit
Risk management (2-3%) per day
Position sizing :-2-5%of capital per day
The Daily profit target should be (1-2%)
Relying on both technical and fundamental analysis can help.
Moderate trading can help you earn around 1000rs to 2000rs per day using 1L capital.
Aggressive trading ( daily 5- 10%)
Aggressive trading involves fast decision-making strong risk management and frequency trading to avoid large losses it focuses on higher risk and higher reward strategy this trading has more risk than both conversion trading and moderate trading as well it leads to more profit from then as well things to focus on will aggressive trading is following.
Large position sizing (5-10%)
Daily target return should be (2-5%)
Aggressive trading needs the best execution
Higher risk tolerance
Aggressive trading is expected to help to gain around 2000 rs to 5000 rs per day with one lakh capital.
Strategies to keep in mind will doing intraday trading
Potential earning in day trading through 1 lakh capital based on different ways, plus your risk management, tactics, market survey, and how they will implement shares. There are some following points of potential earning and day trading.
Risk Management – Risk management is the process of finding analysis and handling legal strategic and security risks to capital and earn.
Leverage-Many brokers offer margin (leverage), allowing you to trade with more capital than you have, amplifying both profits and losses.
Trading Skills-Short-term scalping, momentum trading, and technical analysis can yield different results.
Market Conditions– Volatile markets offer more opportunities but also increase risk.
Broker Fees– A broker fee is a commission a broker charges executive transactions or provides specialized services on behalf of clients.
Buy shares and sell shares with the consultation of the broker and sell the shares and gain profit.
Approximate Earnings Calculation:
If you use ₹1 lakh and:
Assume leverage of 10x, so your trading capital becomes ₹10 lakh.
Aim for a conservative 1% profit on the entire trade.
Your potential daily earnings could be:
₹10 lakh × 1% = ₹10,000.
Now, if you trade multiple times a day, this could increase, but there’s also the risk of losses. With such leverage, even a small movement in the opposite direction (1% loss) can wipe out a significant portion of your capital.
Risks Involved:
Market Volatility: Sudden market swings can lead to quick losses.
Leverage Risk: Trading with leverage amplifies both gains and losses
Brokerage and Taxes: Intraday trading incurs brokerage fees, Securities Transaction Tax (STT), and other charges, which can eat into your profits
Realistic Expectations:
With good risk management and strategy, a realistic daily profit range could be ₹2,000 to ₹5,000 consistently with ₹1 lakh capital. However, it’s essential to start cautiously and not over-leverage your position, as losses can be equally fast.
Points To Be Noted While Trading
While doing trading some traders miss important things which can impact their decision in a negative way. Therefor here are some point to be noted while trading:-
1. Stop-order– order is a trading process that allows you to cut your losses while trading in the stock market. When you set a stop-order criterion at a certain price of your stock, it automatically sells the shares when the price falls below the stop-order price level.
Analyze– day trading requires a lot of homework. To Make quick design, which day trading essential offers have to be backed by A research company. Traders have to be skilled in charts, oscillators, trading metrics ratio, monitoring volume, and many other indicators that require trading. Stock market returns are volatile more so when you are buying and selling the shares on the same day.
Regularly Monitor Your Investments- One of the most important qualities to be successful in the stock market is to monitor your investments and portfolio. Monitoring your portfolio regularly helps you to sell the stock immediately if you think the prices are likely to correct in the future. This requires even more day trading because your daily activity can decide your position (profit/loss) in the market and financial conditions.
To mack trading more effective and easy we can use some strategy which will help to gain more profit with minimum loss
Five Popular Trading Strategies
As we discussed early in our blog that before trading there are some risks .So here we discuss how we can overcome this mistake. There are some strategies for trading which makes it more secure.
Inversion Intraday/day trading Strategy– Reversal intraday or day trading strategy means where a trader fixes the limit of the stock it means when the price movement happens in the stock so it reverses to the trader
Averaging Down–Averaging down means where traders buy stock or assets and the price of stock decreases then the trader buys more shares which decrease the average value of stock this term is considered as an averaging down.
3.Pyramiding–Pyramiding means where the trader buys more stock or assets when the value of the stock increases and invests more in stock . They aim to make more profit out of it and they add more of the position as the assets perform well.
4.Breakout Trading–meanly when price of assets move beyond specific level of resistance . when price breaks out from a condolence phrase such as the previously defined range . breakout trading capitalize to the same movement that will follow the breakout.
5.SWING TRADING– Swing Trading revolves around the strategy of taking when traders buy and sell stocks within a month . where traders aim to capture price moves of the market. The main goal of the sewing trading is to identify opportunities when the price moves in a clear direction during the sewing, whether bullish or bearish to get profit from this movement.
Step into the fast-paced world of intraday trading where every moment counts! Do you find yourself spending hours researching market trends only to fall short of your desired results? Well, it’s time to upgrade your trading game with our list of the 10 best intraday Telegram channels that offer intraday telegram tips, insights, and strategies to help you make profitable trades.
What is Intraday trading
The Buying and selling of the stock on the same trading day is known as intraday trading. This is quite famous among the trades that gain capital with high risk and reward. Choosing a stock for intraday trading is quite tasking work. The
Stock must have high liquidity, volatility, Strong Volumes, and hefty volume.
Top 10 telegram channels for intraday
It does not matter what kind of investment or trading you are interested in whether it is Intraday, Swing trading, Futures and options, Commodities, forex, etc. These telegram channels are going to provide you with the latest news, trends, sector rotation, and New updates as Learning Sharks tells you here are the top 10 best telegram channels for intraday trading.
Rupee Gainers the one of the biggest telegram channels for the finance world. The telegram channel is created to share information of the Indian rupee and Indian stock market. It provides the real-time update and financial reports of the Indian stock market. Currently, they are offering a subscription for investment advice, and as per the Learning Sharks’ research, 70% of their subscriber are profitable.
Top Features and the company information
Total Subscribers of the company: 250000
Founded in: 2019
2. Nifty 50 Stocks
The Nifty 50 stocks are the leading stock advisory channel. This channel mainly focused on intraday trading and swing trading. They also provide real-time data on the stock market like trend, sector rotation, and trending news which can affect the stock market
Top Features and the company information
Total Subscribers of the company: 400000
Founded in: 2019
Free tips and tricks
Education reels and videos
3. Stock Times
Stock Times is the leading stock research group which is owned by Ashish Kumar for all your investment options. The Telegram channel is for both noob and experienced traders. The approach is quite simple they provide simple practical knowledge and course video which is absurdly free.
Top Features and the company information
Daily Stock Market update
Free Investing Tips
Future and options calls
Channel followers: 62000
4. Hindustan Trader
Hindustan Trader is a popular channel on the telegram offering chart analysis, fundamental analysis and company information. This channel provides the information, strategies, and learning to their valuable followers
Top Features and the company information
Daily free 3-4 options call and intraday calls
Free Investing Tips
Helpline support as well
Live trading on YouTube
Channel followers: 50000
5. ChaseAlpha
ChaseAlpha is a start-up founded by a Pune-based trader. He provides intraday and swing trading calls to his followers, mainly trading in futures and options.
Top Features and the company information
Paid subscription
Exclusive free course for intraday trading
Channel subscribers: 12000
6. Vision trade
Vision Trading is one of the best Telegram channels for intraday trading. Along with trading, they offer a wide range of services, stocks, currencies, and commodities. They have their own software, like TradingView and Scanner, which is paid.
Top Features and the company information
Paid subscription
Exclusive free course for intraday trading
Channel subscribers: 12000
7. equity99
Equity99 is one of the oldest telegram pages, they provide intraday calls and future and options calls to the subscribers, and they also provide long-term and short-term recommendations about the stocks and mutual funds on telegram
Top Features and the company information
Mainly they focus on stop-loss strategies
Provide authentic call
90% accurate information
8. Usha’s Analysis
I think this is the most hated telegram channel but as per Learning Sharks Research they provide 70% accurate trading tips, they have the best business strategies for swing trading but intraday trading and the future and option 95% of their calls are worthless.
Top Features and the company information
Transparent analysis < Swing Trading>
Educational Content
Channel Subscriber: 7000
9. CA Jagadeesh
The most followed trading channel is trading with ca Abhi. This channel provides stock market news updates and tips for stock trading. The owner of this channel is the CA who believe in long-term investing. They also provide the intraday signals to their followers.CA Jagdish is the financial planner and the swing trading splices. He is known for his good understanding of swing trading. The recommendation he gives is totally for the experienced trader.
Top Features and the company information
Advanced trading tools
SEBI Registered
Offers educational material and webinars
How to join the intraday trading tips channel
Step 1 : You can download Telegram free from the Google Play Store or app store.
Step 2 : Log in to telegram with your phone number
Step 3 : Go to the search bar and search for your favourite
Step 4 : Then you can join the group yourself
Things to know before joining the telegram channel
1. Check the credibility of the telegram page and channel by yourself Must check the rating and the subscriber feedback.
2. The channel must be SEBI Registered and must be owned by a public figure.
3. P&l Statement Of the admin must be publically available.
Indian Stock Market Faces Turbulence: A Closer Look at the Factors Behind the Decline
In recent weeks, the Indian stock market has experienced a significant downturn, with both the Sensex and Nifty 50 indices showing notable drops. This article delves into the key factors contributing to this unsettling trend.
Economic Growth Concerns
One of the primary drivers behind the market decline is the growing concern over India’s economic growth. Investors are increasingly wary of potential slowdowns in economic expansion, which could impact corporate profits and overall market performance. Analysts are keeping a close eye on economic indicators and government policies to gauge their potential effects on the market.
Global Economic Influences
The Indian stock market is not immune to global economic pressures. Recent developments in major economies, including changes in monetary policies and ongoing geopolitical tensions, have had ripple effects on markets worldwide. The uncertainty surrounding global trade and economic stability is contributing to the cautious sentiment among Indian investors.
Corporate Earnings Reports
Earnings season has revealed some disappointing results from key Indian companies, adding to market volatility. Lower-than-expected earnings and weaker financial projections have sparked concerns about the health of major corporations and, by extension, the broader market. These earnings reports have fueled investor apprehension, leading to increased selling activity.
Market Sentiment
The overall market sentiment has turned negative, exacerbating the market decline. Negative news cycles, combined with uncertainty about future economic conditions, have led to a decrease in investor confidence. As a result, there has been a surge in sell-offs, further pushing down stock prices.
Looking Ahead
While the current market downturn presents challenges, it also offers potential opportunities for investors who are willing to navigate the volatility. Analysts recommend keeping an eye on economic indicators and corporate performance while remaining aware of global economic developments.
In summary, the recent fall in the Indian stock market is driven by a combination of domestic economic concerns, global economic influences, disappointing corporate earnings, and negative market sentiment. As the situation evolves, investors will need to stay informed and consider both the risks and opportunities presented by the current market conditions.
The global economy, while performing better than expected, is still in the grip of policy uncertainties. Elevated asset prices, political uncertainties and shipping disruptions continue to pose significant downside risks for growth and upside risks to inflation.
In this context, India’s economic growth continues to be the shining exception and will remain so in the years ahead. India’s inflation continues to be low, stable and moving towards the 4 per cent target. Core inflation (non-food, non-fuel) currently is 3.1 per cent. Steps are being taken to ensure supplies of perishable goods reach market adequately.
Interim Budget
As mentioned in the interim budget, we need to focus on 4 major castes, namely ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer). For Annadata, we announced higher Minimum Support Prices a month ago for all major crops, delivering on the promise of at least a 50 per cent margin over costs.Pradhan Mantri Garib Kalyan Anna Yojana was extended for five years, benefitting more than 80 crore people.
Administrative actions for approval and implementation of various schemes announced in the interim budget are well underway. The required allocations have been made.
Budget Theme
Turning attention to the full year and beyond, in this budget, we particularly focus on employment, skilling, MSMEs, and the middle class. I am happy to announce the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of ` 2 lakh crore. I will speak about them shortly, while more details may be seen in the annexure. This year, I have made a provision of ` 1.48 lakh crore for education, employment and skilling.
Budget Priorities
The people have given a unique opportunity to our government to take the country on the path of strong development and all-round prosperity. In the interim budget, we promised to present a detailed roadmap for our pursuit of ‘Viksit Bharat’. In line with the strategy set out in the interim budget, this budget envisages sustained efforts on the following 9 priorities for generating ample opportunities for all.
Productivity and resilience in Agriculture
Employment & Skilling
Inclusive Human Resource Development and Social Justice
Manufacturing & Services
Urban Development
Energy Security
Infrastructure
Innovation, Research & Development and
Next Generation Reforms
Subsequent budgets will build on these, and add more priorities and actions. A more detailed formulation will be carried out as part of the ‘economic policy framework’ about which I will speak later in this speech.
This budget details some of the specific actions to be initiated in the current year towards fulfilment of these priorities with potential for transformative changes. The budget also covers some of the previously made announcements with an intent to strengthen them and step up their implementation for expediting our journey towards the goal of Viksit Bharat.
Priority 1: Productivity and resilience in Agriculture
Transforming agriculture research
Our government will undertake a comprehensive review of the agriculture research setup to bring the focus on raising productivity and developing climate resilient varieties. Funding will be provided in challenge mode, including to the private sector. Domain experts both from the government and outside will oversee the conduct of such research.
Release of new varieties
New 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers.
Natural Farming
In the next two years, 1 crore farmers across the country will be initiated into natural farming supported by certification and branding. Implementation will be through scientific institutions and willing gram panchayats. 10,000 need-based bio-input resource centres will be established.
Missions for pulses and oilseeds
For achieving self-sufficiency in pulses and oilseeds, we will strengthen their production, storage and marketing. As announced in the interim budget, a strategy is being put in place to achieve ‘atmanirbharta’ for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower.
Vegetable production & Supply Chains
Large scale clusters for vegetable production will be developed closer to major consumption centres. We will promote Farmer-Producer Organizations, cooperatives and start-ups for vegetable supply chains including for collection, storage, and marketing.
Buoyed by the success of the pilot project, our government, in partnership with the states, will facilitate the implementation of the Digital Public Infrastructure(DPI) in agriculture for coverage of farmers and their lands in 3 years. During this year, digital crop survey for Kharif using the DPI will be taken up in 400 districts. The details of 6 crore farmers and their lands will be brought into the farmer and land registries. Further, the issuance of Jan Samarth based Kisan Credit Cards will be enabled in 5 states.
Shrimp Production & Export
Financial support for setting up a network of Nucleus Breeding Centres for Shrimp Broodstocks will be provided. Financing for shrimp farming, processing and export will be facilitated through NABARD.
National Cooperation Policy
Our government will bring out a National Cooperation Policy for systematic, orderly and all-round development of the cooperative sector. Fast-tracking growth of rural economy and generation of employment opportunities on a large scale will be the policy goal.
This year, I have made a provision of ` 1.52 lakh crore for agriculture and allied sector.
Priority 2: Employment & Skilling
Employment Linked Incentive
Our government will implement following 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers.
Scheme A: First Timers
This scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in 3 instalments to first-time employees, as registered in the EPFO, will be up to ` 15,000. The eligibility limit will be a salary of ` 1 lakh per month. The scheme is expected to benefit 210 lakh youth.
Scheme B: Job Creation in manufacturing
This scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.
Scheme C: Support to employers
This employer-focussed scheme will cover additional employment in all sectors. All additional employment within a salary of ` 1 lakh per month will be counted. The government will reimburse to employers up to ` 3,000 per month for 2 years towards their EPFO contribution for each additional employee. The scheme is expected to incentivize additional employment of 50 lakh persons.
Participation of women in the workforce
We will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches. In addition, the partnership will seek to organize women-specific skilling programmes, and promotion of market access for women SHG enterprises.
Skilling programme
I am happy to announce a new centrally sponsored scheme, as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with state governments and Industry. 20 lakh youth will be skilled over a 5-year period. 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. Course content and design will be aligned to the skill needs of industry, and new courses will be introduced for emerging needs.
Skilling Loans
The Model Skill Loan Scheme will be revised to facilitate loans up to ` 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
Education Loans
For helping our youth who have not been eligible for any benefit under government schemes and policies, I am happy to announce a financial support for loans upto ` 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 per cent of the loan amount.
Priority 3: Inclusive Human Resource DevelopmentandSocial Justice
Saturation approach
Our government is committed to all-round, all-pervasive and all-inclusive development of people, particularly, farmers, youth, women and poor. For achieving social justice comprehensively, the saturation approach of covering all eligible people through various programmes including those for education and health will be adopted to empower them by improving their capabilities.
Implementation of schemes meant for supporting economic activities by craftsmen, artisans, self-help groups, scheduled caste, schedule tribe and women entrepreneurs, and street vendors, such as PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India will be stepped up.
On the Amritsar Kolkata Industrial Corridor, we will support development of an industrial node at Gaya. This corridor will catalyze industrial development of the eastern region. The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of modern economy. This model shall showcase “Vikas bhi Virasat bhi” in our growth trajectory.
We will also support development of road connectivity projects, namely (1) Patna-Purnea Expressway, (2) Buxar-Bhagalpur Expressway, (3) Bodhgaya, Rajgir, Vaishali and Darbhanga spurs, and (4) additional 2-lane bridge over river Ganga at Buxar at a total cost of ` 26,000 crore. Power projects, including setting up of a new 2400 MW power plant at Pirpainti, will be taken up at a cost of ` 21,400 crore. New airports, medical colleges and sports infrastructure in Bihar will be constructed.
An additional allocation to support capital investments will be provided. The requests of Bihar Government for external assistance from multilateral development banks will be expedited.
Andhra Pradesh Reorganization Act
Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act. Recognizing the state’s need for a capital, we will facilitate special financial support through multilateral development agencies. In the current financial year ` 15,000 crore will be arranged, with additional amounts in future years.
Our government is fully committed to financing and early completion of the Polavaram Irrigation Project, which is the lifeline for Andhra Pradesh and its farmers. This will facilitate our country’s food security as well.
Under the Act, for promoting industrial development, funds will be provided for essential infrastructure such as water, power, railways and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor. An additional allocation will be provided this year towards capital investment for economic growth.
Grants for backward regions of Rayalaseema, Prakasam and North Coastal Andhra, as stated in the Act, will also be provided.
PM Awas Yojana
Three crore additional houses under the PM Awas Yojana in rural and urban areas in the country have been announced, for which the necessary allocations are being made.
Women-led development
For promoting women-led development, the budget carries an allocation of more than ` 3 lakh crore for schemes benefitting women and girls. This signals our government’s commitment for enhancing women’s role in economic development.
Pradhan Mantri Janjatiya Unnat Gram Abhiyan
For improving the socio-economic condition of tribal communities, we will launch the Pradhan Mantri Janjatiya Unnat Gram Abhiyan by adopting saturation coverage for tribal families in tribal-majority villages and aspirational districts. This will cover 63,000 villages benefitting 5 crore tribal people.
Bank branches in North-Eastern Region
More than 100 branches of India Post Payment Bank will be set up in the North East region to expand the banking services.
This year, I have made a provision of ` 2.66 lakh crore for rural development including rural infrastructure.
Credit Guarantee Scheme for MSMEs in the Manufacturing Sector
For facilitating term loans to MSMEs for purchase of machinery and equipment without collateral or third-party guarantee, a credit guarantee scheme will be introduced. The scheme will operate on pooling of credit risks of such MSMEs. A separately constituted self-financing guarantee fund will provide, to each applicant, guarantee cover up to ` 100 crore, while the loan amount may be larger. The borrower will have to provide an upfront guarantee fee and an annual guarantee fee on the reducing loan balance.
New assessment model for MSME credit
Public sector banks will build their in-house capability to assess MSMEs for credit, instead of relying on external assessment. They will also take a lead in developing or getting developed a new credit assessment model, based on the scoring of digital footprints of MSMEs in the economy. This is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria. That will also cover MSMEs without a formal accounting system.
Credit Support to MSMEs during Stress Period
I am happy to announce a new mechanism for facilitating continuation of bank credit to MSMEs during their stress period. While being in the ‘special mention account’ (SMA) stage for reasons beyond their control, MSMEs need credit to continue their business and to avoid getting into the NPA stage. Credit availability will be supported through a guarantee from a government promoted fund.
Mudra Loans
The limit of Mudra loans will be enhanced to ₹ 20 lakh from the current ₹ 10 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category.
Enhanced scope for mandatory onboarding in TReDS
For facilitating MSMEs to unlock their working capital by converting their trade receivables into cash, I propose to reduce the turnover threshold of buyers for mandatory onboarding on the TReDS platform from ` 500 crore to ` 250 crore. This measure will bring 22 more CPSEs and 7000 more companies onto the platform. Medium enterprises will also be included in the scope of the suppliers.
SIDBI branches in MSME clusters
SIDBI will open new branches to expand its reach to serve all major MSME clusters within 3 years, and provide direct credit to them. With the opening of 24 such branches this year, the service coverage will expand to 168 out of 242 major clusters.
MSME Units for Food Irradiation, Quality & Safety Testing
Financial support for setting up of 50 multi-product food irradiation units in the MSME sector will be provided. Setting up of 100 food quality and safety testing labs with NABL accreditation will be facilitated.
E-Commerce Export Hubs
To enable MSMEs and traditional artisans to sell their products in international markets, E-Commerce Export Hubs will be set up in public-private-partnership (PPP) mode . These hubs, under a seamless regulatory and logistic framework, will facilitate trade and export related services under one roof.
Measures for promotion of Manufacturing & Services
Our government will facilitate development of investment-ready “plug and play” industrial parks with complete infrastructure in or near 100 cities, in partnership with the states and private sector, by better using town planning schemes.
Twelve industrial parks under the National Industrial Corridor Development Programme also will be sanctioned.
Rental Housing
Rental housing with dormitory type accommodation for industrial workers will be facilitated in PPP mode with VGF support and commitment from anchor industries.
Shipping industry
Ownership, leasing and flagging reforms will be implemented to improve the share of the Indian shipping industry and generate more employment.
Critical Mineral Mission
We will set up a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. Its mandate will include technology development, skilled workforce, extended producer responsibility framework, and a suitable financing mechanism.
Offshore mining of minerals
Our government will launch the auction of the first tranche of offshore blocks for mining, building on the exploration already carried out.
Digital Public Infrastructure Applications
Turning to the services sector, I propose development of DPI applications at population scale for productivity gains, business opportunities, and innovation by the private sector. These are planned in the areas of credit, e-commerce, education, health, law and justice, logistics, MSME, services delivery, and urban governance.
Integrated Technology Platform for IBC eco-system
An Integrated Technology Platform will be set up for improving the outcomes under the Insolvency and Bankruptcy Code (IBC) for achieving consistency, transparency, timely processing and better oversight for all stakeholders.
Voluntary closure of LLPs
The services of the Centre for Processing Accelerated Corporate Exit (C-PACE) will be extended for voluntary closure of LLPs to reduce the closure time.
National Company Law Tribunals
The IBC has resolved more than 1,000 companies, resulting in direct recovery of over ` 3.3 lakh crore to creditors. In addition, 28,000 cases involving over ` 10 lakh crore have been disposed of, even prior to admission.
Appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up insolvency resolution. Additional tribunals will be established. Out of those, some will be notified to decide cases exclusively under the Companies Act.
Debt Recovery
Steps for reforming and strengthening debt recovery tribunals will be taken. Additional tribunals will be established to speed up recovery.
Priority 5: Urban Development
Cities as Growth Hubs
Working with states, our government will facilitate development of ‘Cities as Growth Hubs’. This will be achieved through economic and transit planning, and orderly development of peri-urban areas utilising town planning schemes.
Creative redevelopment of cities
For creative brownfield redevelopment of existing cities with a transformative impact, our government will formulate a framework for enabling policies, market-based mechanisms and regulation.
Transit Oriented Development
Transit Oriented Development plans for 14 large cities with a population above 30 lakh will be formulated, along with an implementation and financing strategy.
In addition, enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place.
Water Supply and Sanitation
In partnership with the State Governments and Multilateral Development Banks we will promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects. These projects will also envisage use of treated water for irrigation and filling up of tanks in nearby areas.
Street Markets
Building on the success of PM SVANidhi Scheme in transforming the lives of street vendors, our Government envisions a scheme to support each year, over the next five years, the development of 100 weekly ‘haats’ or street food hubs in select cities.
Stamp Duty
We will encourage states which continue to charge high stamp duty to moderate the rates for all, and also consider further lowering duties for properties purchased by women. This reform will be made an essential component of urban development schemes.
In line with the announcement in the interim budget, PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month. The scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications, and we will further encourage it.
Pumped Storage Policy
A policy for promoting pumped storage projects will be brought out for electricity storage and facilitating smooth integration of the growing share of renewable energy with its variable & intermittent nature in the overall energy mix.
Research and development of small and modular nuclear reactors
Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat. Towards that pursuit, our government will partner with the private sector for (1) setting up Bharat Small Reactors, (2) research & development of Bharat Small Modular Reactor, and (3) research & development of newer technologies for nuclear energy. The R&D funding announced in the interim budget will be made available for this sector.
Advanced Ultra Super Critical Thermal Power Plants
The development of indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants with much higher efficiency has been completed. A joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant using AUSC technology. The government will provide the required fiscal support. Moving forward, development of indigenous capacity for the production of high-grade steel and other advanced metallurgy materials for these plants will result in strong spin-off benefits for the economy.
Roadmap for ‘hard to abate’ industries
A roadmap for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’ will be formulated. Appropriate regulations for transition of these industries from the current ‘Perform, Achieve and Trade’ mode to ‘Indian Carbon Market’ mode will be put in place.
Support to traditional micro and small industries
An investment-grade energy audit of traditional micro and small industries in 60 clusters, including brass and ceramic, will be facilitated. Financial support will be provided for shifting them to cleaner forms of energy and implementation of energy efficiency measures. The scheme will be replicated in another 100 clusters in the next phase.
Priority 7: Infrastructure
Infrastructure investment by Central Government
Significant investment the Central Government has made over the years in building and improving infrastructure has had a strong multiplier effect on the economy. We will endeavour to maintain strong fiscal support for infrastructure over the next 5 years, in conjunction with imperatives of other priorities and fiscal consolidation. This year, I have provided ` 11,11,111 crore for capital expenditure. This would be 3.4 per cent of our GDP.
Infrastructure investment by state governments
We will encourage states to provide support of similar scale for infrastructure, subject to their development priorities. A provision of ` 1.5 lakh crore for long-term interest free loans has been made this year also to support the states in their resource allocation.
Private investment in infrastructure
Investment in infrastructure by private sector will be promoted through viability gap funding and enabling policies and regulations. A market-based financing framework will be brought out.
Pradhan Mantri Gram Sadak Yojana (PMGSY)
Phase IV of PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations which have become eligible in view of their population increase.
Irrigation and Flood Mitigation
Bihar has frequently suffered from floods, many of them originating outside the country. Plans to build flood control structures in Nepal are yet to progress. Our government, through the Accelerated Irrigation Benefit Programme and other sources, will provide financial support for projects with estimated cost of ` 11,500 crore such as the Kosi-Mechi intra-state link and 20 other ongoing and new schemes including barrages, river pollution abatement and irrigation projects. In addition, survey and investigation of Kosi related flood mitigation and irrigation projects will be undertaken.
Assam grapples with floods every year by the Brahmaputra River and its tributaries, originating outside India. We will provide assistance to Assam for flood management and related projects.
Himachal Pradesh suffered extensive losses due to floods last year. Our government will provide assistance to the state for reconstruction and rehabilitation through multilateral development assistance.
Uttarakhand too suffered losses due to cloud bursts and massive landslides. We will provide assistance to the state.
Recently Sikkim witnessed devastating flash floods and landslides that wreaked havoc across the state. Our Government will provide assistance to the state.
Tourism
Tourism has always been a part of our civilization. Our efforts in positioning India as a global tourist destination will also create jobs, stimulate investments and unlock economic opportunities for other sectors. In addition to the measures outlined in the interim budget, I propose the following measures.
Vishnupad Temple at Gaya and Mahabodhi Temple at Bodh Gaya in Bihar are of immense spiritual significance. Comprehensive development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor will be supported, modelled on the successful Kashi Vishwanath Temple Corridor, to transform them into world class pilgrim and tourist destinations.
Rajgir holds immense religious significance for Hindus, Buddhists and Jains. The 20th Tirthankara Munisuvrata temple in the Jain Temple complex is ancient. The Saptharishi or the 7 hotsprings form a warm water Brahmakund that is sacred. A comprehensive development initiative for Rajgir will be undertaken.
Our government will support the development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature.
Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches make it an ultimate tourism destination. Our government will provide assistance for their development.
Priority 8: Innovation, Research & Development
We will operationalize the Anusandhan National Research Fund for basic research and prototype development. Further, we will set up a mechanism for spurring private sector-driven research and innovation at commercial scale with a financing pool of ` 1 lakh crore in line with the announcement in the interim budget.
Space Economy
With our continued emphasis on expanding the space economy by 5 times in the next 10 years, a venture capital fund of ` 1,000 crore will be set up.
Priority 9: Next Generation Reforms
Economic Policy Framework
We will formulate an Economic Policy Framework to delineate the overarching approach to economic development and set the scope of the next generation of reforms for facilitating employment opportunities and sustaining high growth.
Effective implementation of several of these reforms requires collaboration between the Centre and the states and building consensus, as development of the country lies in development of the states. For promoting competitive federalism and incentivizing states for faster implementation of reforms, I propose to earmark a significant part of the 50-year interest-free loan. Working with the states, we will initiate the following reforms.
Land-related reforms by state governments
Land-related reforms and actions, both in rural and urban areas, will cover (1) land administration, planning and management, and (2) urban planning, usage and building bylaws. These will be incentivized for completion within the next 3 years through appropriate fiscal support.
Rural Land related actions
Rural land related actions will include (1) assignment of Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, (2) digitization of cadastral maps, (3) survey of map sub-divisions as per current ownership, (4) establishment of land registry, and (5) linking to the farmers registry. These actions will also facilitate credit flow and other agricultural services.
Urban Land related actions
Land records in urban areas will be digitized with GIS mapping. An IT based system for property record administration, updating, and tax administration will be established. These will also facilitate improving the financial position of urban local bodies.
Shram Suvidha and Samadhan portals will be revamped to enhance ease of compliance for industry and trade.
Capital and entrepreneurship related reforms
Financial sector vision and strategy
For meeting financing needs of the economy, our government will bring out a financial sector vision and strategy document to prepare the sector in terms of size, capacity and skills. This will set the agenda for the next 5 years and guide the work of the government, regulators, financial institutions and market participants.
Taxonomy for climate finance
We will develop a taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation. This will support achievement of the country’s climate commitments and green transition.
Variable Capital Company structure
We will seek the required legislative approval for providing an efficient and flexible mode for financing leasing of aircrafts and ships, and pooled funds of private equity through a ‘variable company structure’.
Foreign Direct Investment and Overseas Investment
The rules and regulations for Foreign Direct Investment and Overseas Investments will be simplified to (1) facilitate foreign direct investments, (2) nudge prioritization, and (3) promote opportunities for using Indian Rupee as a currency for overseas investments.
NPS Vatsalya
NPS-Vatsalya, a plan for contribution by parents and guardians for minors will be started. On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.
Use of Technology
We have successfully used technology for improving productivity and bridging inequality in our economy during the past 10 years. Public investment in digital infrastructure and innovations by the private sector have helped in improving access of all citizens, particularly the common people, to market resources, education, health and services. We will step up adoption of technology towards digitalization of the economy.
Ease of Doing Business
For enhancing ‘Ease of Doing Business’, we are already working on the Jan Vishwas Bill 2.0. Further, states will be incentivized for implementation of their Business Reforms Action Plans and digitalization.
Data and Statistics
For improving data governance, collection, processing and management of data and statistics, different sectoral data bases, including those established under the Digital India mission, will be utilized with active use of technology tools.
New Pension Scheme (NPS)
The Committee to review the NPS has made considerable progress in its work. I am happy that the Staff Side of the National Council of the Joint Consultative Machinery for Central Government Employees have taken a constructive approach. A solution will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens.
Budget Estimates 2024-25
For the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at ` 32.07 lakh crore and ` 48.21 lakh crore respectively. The net tax receipts are estimated at ` 25.83 lakh crore. The fiscal deficit is estimated at 4.9 per cent of GDP.
The gross and net market borrowings through dated securities during 2024-25 are estimated at ` 14.01 lakh crore and ` 11.63 lakh crore respectively. Both will be less than that in 2023-24.
The fiscal consolidation path announced by me in 2021 has served our economy very well, and we aim to reach a deficit below 4.5 per cent next year. The Government is committed to staying the course. From 2026-27 onwards, our endeavour will be to keep the fiscal deficit each year such that the Central Government debt will be on a declining path as percentage of GDP.
I will, now, move to Part B.
PART B
Indirect Taxes
I start with GST. It has decreased tax incidence on the common man; reduced compliance burden and logistics cost for trade and industry; and enhanced revenues of the central and state governments. It is a success of vast proportions. To multiply the benefits of GST, we will strive to further simplify and rationalise the tax structure and endeavour to expand it to the remaining sectors.
My proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount.
In Budget 2022-23, we reduced the number of customs duty rates. I propose to undertake a comprehensive review of the rate structure over the next six months to rationalise and simplify it for ease of trade, removal of duty inversion and reduction of disputes.
I shall now take up sector specific customs duty proposals.
Medicines and Medical Equipment
To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties.
I also propose changes in the BCD on x-ray tubes & flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme, so as to synchronise them with domestic capacity addition.
Mobile Phone and Related Parts
With a three-fold increase in domestic production and almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured. In the interest of consumers, I now propose to reduce the BCD on mobile phone, mobile PCBA and mobile charger to 15 per cent.
Critical Minerals
Minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics. I propose to fully exempt customs duties on 25 critical minerals and reduce BCD on two of them. This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors.
Solar Energy
Energy transition is critical in the fight against climate change. To support energy transition, I propose to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. Further, in view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, I propose not to extend the exemption of customs duties provided to them.
Marine products
India’s seafood exports in the last financial year touched an all-time high of more than ₹ 60,000 crore. Frozen shrimp accounted for about two-thirds of these exports. To enhance their competitiveness, I propose to reduce BCD on certain broodstock, polychaete worms, shrimp and fish feed to 5 per cent. I also propose to exempt customs duty on various inputs for manufacture of shrimp and fish feed.
Leather and Textile
Similarly, to enhance the competitiveness of exports in the leather and textile sectors, I propose to reduce BCD on real down filling material from duck or goose. I am also making additions to the list of exempted goods for manufacture of leather and textile garments, footwear and other leather articles for export.
To rectify inversion in duty, I propose to reduce BCD, subject to conditions, on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn from 7.5 to 5 per cent.
Furthermore, the export duty structure on raw hides, skins and leather is proposed to be simplified and rationalized.
Precious Metals
To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent.
Other Metals
Steel and copper are important raw materials. To reduce their cost of production, I propose to remove the BCD on ferro nickel and blister copper. I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap.
Electronics
To increase value addition in the domestic electronics industry, I propose to remove the BCD, subject to conditions, on oxygen free copper for manufacture of resistors. I also propose to exempt certain parts for manufacture of connectors.
Chemicals and Petrochemicals
To support existing and new capacities in the pipeline, I propose to increase the BCD on ammonium nitrate from 7.5 to 10 per cent.
Plastics
PVC flex banners are non-biodegradable and hazardous for environment and health. To curb their imports, I propose to raise the BCD on them from 10 to 25 per cent.
Telecommunication Equipment
To incentivise domestic manufacturing, I propose to increase the BCD from 10 to 15 per cent on PCBA of specified telecom equipment.
Trade facilitation
To promote domestic aviation and boat & ship MRO, I propose to extend the period for export of goods imported for repairs from six months to one year. In the same vein, I propose to extend the time-limit for re-import of goods for repairs under warranty from three to five years.
Direct Taxes
We will continue our efforts to simplify taxes, improve tax payer services, provide tax certainty and reduce litigation while enhancing revenues for funding the development and welfare schemes of the government.
It has been our endeavour to simplify taxation. We have taken a number of measures in the last few years including introduction of simplified tax regimes without exemptions and deductions for corporate tax and personal income tax. This has been appreciated by tax payers. 58 per cent of corporate tax came from the simplified tax regime in financial year 2022-23. Similarly, as per data available till now for the last fiscal, more than two-thirds have availed the new personal income tax regime.
Comprehensive Review of the Income-tax Act, 1961
I am now announcing a comprehensive review of the Income-tax Act, 1961. The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the tax payers. It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months.
A beginning is being made in the Finance Bill by simplifying the tax regime for charities, TDS rate structure, provisions for reassessment and search provisions and capital gains taxation.
Simplification for Charities and of TDS
The two tax exemption regimes for charities are proposed to be merged into one. The 5 per cent TDS rate on many payments is being merged into the 2 per cent TDS rate and the 20 per cent TDS rate on repurchase of units by mutual funds or UTI is being withdrawn. TDS rate on e-commerce operators is proposed to be reduced from one to 0.1 per cent. Moreover, credit of TCS is proposed to be given in the TDS to be deducted on salary. Further, I propose to decriminalize delay for payment of TDS up to the due date of filing statement for the same. I also plan to provide a standard operating procedure for TDS defaults and simplify and rationalise the compounding guidelines for such defaults.
Simplification of Reassessment
I propose to thoroughly simplify the provisions for reopening and reassessment. An assessment hereinafter can be reopened beyond three years from the end of the assessment year only if the escaped income is ₹ 50 lakh or more, up to a maximum period of five years from the end of the assessment year. Even in search cases, a time limit of six years before the year of search, as against the existing time limit of ten years, is proposed. This will reduce tax-uncertainty and disputes.
1Simplification and Rationalisation of Capital Gains
Capital gains taxation is also proposed to be hugely simplified.
Short term gains on certain financial assets shall henceforth attract a tax rate of 20 per cent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate.
Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to ₹ 1.25 lakh per year.
Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.
Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates.
Tax Payer Services
All the major tax payer services under GST and most services under Customs and Income Tax have been digitalised. All remaining services of Customs and Income Tax including rectification and order giving effect to appellate orders shall be digitalized and made paper-less over the next two years.
Litigation and Appeals
While our concerted efforts to reduce pendency of appeals at various appellate fora are beginning to show good results, it will continue to engage our highest attention.
To dispose of the backlog of first appeals, I plan to deploy more officers to hear and decide such appeals, especially those with large tax effect.
For resolution of certain income tax disputes pending in appeal, I am also proposing Vivad Se Vishwas Scheme, 2024.
Further, I propose to increase monetary limits for filing appeals related to direct taxes, excise and service tax in the Tax Tribunals, High Courts and Supreme Court to ₹ 60 lakh, ₹ 2 crore and ₹ 5 crore respectively.
With a view to reduce litigation and provide certainty in international taxation, we will expand the scope of safe harbour rules and make them more attractive. We will also streamline the transfer pricing assessment procedure.
Employment and Investment
I have a few proposals to promote investment and foster employment.
First of all, to bolster the Indian start-up eco-system, boost the entrepreneurial spirit and support innovation, I propose to abolish the so-called angel tax for all classes of investors.
Second, there is tremendous potential for cruise tourism in India. To give a fillip to this employment generating industry, I am proposing a simpler tax regime for foreign shipping companies operating domestic cruises in the country.
Third, India is a world leader in the diamond cutting and polishing industry, which employs a large number of skilled workers. To further promote the development of this sector, we would provide for safe harbour rates for foreign mining companies selling raw diamonds in the country.
Fourth, to attract foreign capital for our development needs, I propose to reduce the corporate tax rate on foreign companies from 40 to 35 per cent.
Deepening the tax base
I have a couple of proposals for deepening the tax base. First, Security Transactions Tax on futures and options of securities is proposed to be increased to 0.02 per cent and 0.1 per cent respectively. Second, for reasons of equity, I propose to tax income received on buy back of shares in the hands of the recipient.
Others
To improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased from 10 to 14 per cent of the employee’s salary. Similarly, deduction of this expenditure up to 14 per cent of salary from the income of employees in private sector, public sector banks and undertakings, opting for the new tax regime, is proposed to be provided.
Indian professionals working in multinationals get ESOPs and invest in social security schemes and other movable assets abroad. Non-reporting of such small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to ₹ 20 lakh is proposed to be de-penalised.
Other major proposals in the Finance Bill relate to:
Withdrawal of equalization levy of 2 per cent;
Expansion of tax benefits to certain funds and entities in IFSCs; and
immunity from penalty and prosecution to benamidar on full and true disclosure so as to improve conviction under the Benami Transactions (Prohibition) Act, 1988.
Personal Income Tax
Coming to Personal Income Tax Rates, I have two announcements to make for those opting for the new tax regime. First, the standard deduction for salaried employees is proposed to be increased from ₹50,000/- to ₹75,000/-. Similarly, deduction on family pension for pensioners is proposed to be enhanced from ₹ 15,000/- to ₹ 25,000/-. This will provide relief to about four crore salaried individuals and pensioners.
Second, in the new tax regime, the tax rate structure is proposed to be revised, as follows:
0-3 lakh rupees
Nil
3-7 lakh rupees
5 per cent
7-10 lakh rupees
10 per cent
10-12 lakh rupees
15 per cent
12-15 lakh rupees
20 per cent
Above 15 lakh rupees
30 per cent
As a result of these changes, a salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax.
Apart from these, I am also making some other changes as given in the annexure.
As a result of these proposals, revenue of about ₹ 37,000 crore – ₹ 29,000 crore in direct taxes and ₹ 8,000 crore in indirect taxes – will be forgone while revenue of about ₹ 30,000 crore rupees will be additionally mobilized. Thus, the total revenue forgone is about ₹ 7,000 crore annually.
Mr. Speaker Sir, with this, I commend the budget to this august House.
Jai Hind.
Annexure to Part – A
Prime Minister’s Package for Employment and Skilling
Coverage and Estimated Central Outlay
Enrolment Duration
Expenditure Duration
Beneficiaries
Central Outlay
Years
(lakhs)
(`Crore)
Employment Linked Incentive
Scheme A (first timers)
2
3
210
23,000
Scheme B (bulk hiring of first timers in manufacturing)
2
6
30
52,000
Scheme C (job creation)
2
6
50
32,000
Internship Programme (Phase-1)
2
3
30
19,000
Internship Programme (Phase-2)
3*
4*
70
44,000
Upgradation of ITIs
N/A
5
20
30,000
Total
410
2,00,000
*Starting from third year
Outline of Schemes
Employment Linked Incentive Scheme A: First Timers (Para 20)
One month’s wage as subsidy (maximum `15,000)
Applicable to all sectors
First timers have a learning curve before they become fully productive; subsidy is to assist employees and employers in hiring of first timers.
Applicable to all persons newly entering the workforce (EPFO) with wage/salary less than `1 lakh per month.
Subsidy will be paid to the employee in three instalments
Employee must undergo compulsory online Financial Literacy course before claiming the second instalment.
Subsidy to be refunded by employer if the employment to the first timer ends within 12 months of recruitment.
Expected to cover approximately one crore persons per annum.
Applicable for substantial hiring of first time employees in the manufacturing sector
All employers which are corporate entities and those non-corporate entities with a three year track record of EPFO contribution will be eligible.
Employer must hire at least the following number of previously non-EPFO enrolled workers:
50 or
25% of the baseline (previous year’s number of EPFO employees)
[whichever is lower]
Incentive will be paid for four years partly to the employee and partly to the employer as follows:
Year
Incentive (as % of wage / salary, shared equally between employer & employee)
1
24
2
24
3
16
4
8
Employer must maintain threshold level of enhanced employment throughout, failing which subsidy benefit will stop.
Employee must be directly working in the entity paying salary/wage (i.e. in-sourced employee).
Employees with a wage/ salary of up to `1 lakh per month will be eligible, subject to contribution to EPFO.
For those with wages/salary greater than `25,000/month, incentive will be calculated at `25,000/month.
Subsidy to be refunded by employer if the employment to first timer ends within 12 months of recruitment.
This subsidy will be in addition to benefit under Part-A
Scheme will be for 2 years
Employment Linked Incentive Scheme C: Support to employers (Para 22)
Applicable to an employer who:
Increases employment above the baseline (previous year’s number of EPFO employees) by at least two employees (for those with less than 50 employees) or 5 employees (for those with 50 or more employees) and sustains the higher level, and
For employees whose salary does not exceed `1,00,000/month
New employees under this Part need not be new entrants to EPFO
For two years Government will reimburse EPFO employer contribution [up to] `3,000/month to the Employer for the additional Employees hired in the previous year.
If the employer creates more than 1000 jobs:
Reimbursement will be done quarterly for the previous quarter
Subsidy will continue for the 3rd and 4th year on the same scale as Employer benefit in Part-B
Not applicable for those Employees covered under Part-B.
This subsidy will be in addition to benefit under Part-A.
Scheme will be for 2 years
Skilling Programme and Upgradation of Industrial Training Institutes (Para 24)
1000 Industrial Training Institutes (ITIs) to be upgraded in hub and spoke arrangements in five years
New Centrally Sponsored Scheme in collaboration with states and industry
Focus on outcome and quality of skilling
Course content and design aligned to needs of industry
Total outlay of ` 60,000 crore over five years
Government of India—` 30,000 crore
State Governments—` 20,000 crore
Industry—` 10,000 crore (including CSR funding)
200 hubs and 800 spoke ITIs –all with industry collaboration
Re-design and review of existing courses
New courses
1 to 2 year courses in all 1000 ITIs
Short term specialised courses in Hub ITIs
Capacity augmentation of 5 national institutes for training of trainers
20 lakh students expected to benefit
Annexure to Part – A Prime Minister’s Package for Employment and Skilling Coverage and Estimated Central Outlay
Enrolment Duration Expenditure Duration Beneficiaries Central Outlay
Years (lakhs) (`Crore) Employment Linked Incentive
Scheme A (first timers) 2 3 210 23,000 Scheme B (bulk hiring of first timers in manufacturing) 2 6 30 52,000 Scheme C (job creation) 2 6 50 32,000 Internship Programme (Phase-1) 2 3 30 19,000 Internship Programme (Phase-2) 3* 4* 70 44,000 Upgradation of ITIs N/A 5 20 30,000 Total 410 2,00,000 *Starting from third year Outline of Schemes Employment Linked Incentive Scheme A: First Timers (Para 20) One month’s wage as subsidy (maximum `15,000) Applicable to all sectors First timers have a learning curve before they become fully productive; subsidy is to assist employees and employers in hiring of first timers. Applicable to all persons newly entering the workforce (EPFO) with wage/salary less than `1 lakh per month. Subsidy will be paid to the employee in three instalments Employee must undergo compulsory online Financial Literacy course before claiming the second instalment. Subsidy to be refunded by employer if the employment to the first timer ends within 12 months of recruitment. Expected to cover approximately one crore persons per annum. Scheme will be for 2 years Employment linked Incentive Scheme B: Job creation in manufacturing (Para 21) Applicable for substantial hiring of first time employees in the manufacturing sector All employers which are corporate entities and those non-corporate entities with a three year track record of EPFO contribution will be eligible. Employer must hire at least the following number of previously non-EPFO enrolled workers: 50 or 25% of the baseline (previous year’s number of EPFO employees) [whichever is lower] Incentive will be paid for four years partly to the employee and partly to the employer as follows: Year Incentive (as % of wage / salary, shared equally between employer & employee) 1 24 2 24 3 16 4 8
Employer must maintain threshold level of enhanced employment throughout, failing which subsidy benefit will stop. Employee must be directly working in the entity paying salary/wage (i.e. in-sourced employee). Employees with a wage/ salary of up to `1 lakh per month will be eligible, subject to contribution to EPFO. For those with wages/salary greater than `25,000/month, incentive will be calculated at `25,000/month. Subsidy to be refunded by employer if the employment to first timer ends within 12 months of recruitment. This subsidy will be in addition to benefit under Part-A Scheme will be for 2 years Employment Linked Incentive Scheme C: Support to employers (Para 22) Applicable to an employer who: Increases employment above the baseline (previous year’s number of EPFO employees) by at least two employees (for those with less than 50 employees) or 5 employees (for those with 50 or more employees) and sustains the higher level, and For employees whose salary does not exceed `1,00,000/month New employees under this Part need not be new entrants to EPFO For two years Government will reimburse EPFO employer contribution [up to] `3,000/month to the Employer for the additional Employees hired in the previous year. If the employer creates more than 1000 jobs: Reimbursement will be done quarterly for the previous quarter Subsidy will continue for the 3rd and 4th year on the same scale as Employer benefit in Part-B Not applicable for those Employees covered under Part-B. This subsidy will be in addition to benefit under Part-A. Scheme will be for 2 years Skilling Programme and Upgradation of Industrial Training Institutes (Para 24) 1000 Industrial Training Institutes (ITIs) to be upgraded in hub and spoke arrangements in five years New Centrally Sponsored Scheme in collaboration with states and industry Focus on outcome and quality of skilling Course content and design aligned to needs of industry Total outlay of ` 60,000 crore over five years Government of India—` 30,000 crore State Governments—` 20,000 crore Industry—` 10,000 crore (including CSR funding) 200 hubs and 800 spoke ITIs –all with industry collaboration Re-design and review of existing courses New courses 1 to 2 year courses in all 1000 ITIs Short term specialised courses in Hub ITIs Capacity augmentation of 5 national institutes for training of trainers 20 lakh students expected to benefit
5. Internship in Top Companies (Para 51) One crore youth to be skilled by India’s top companies in five years. Twelve months Prime Minister’s Internship with monthly allowance of `5,000 Applicable to those who are not employed and not engaged in full time education. Youth aged between 21 and 24 will be eligible to apply. Cost sharing (per annum): Government – `54,000 towards monthly allowance (plus `6,000 grant for incidentals) Company – Rs 6,000 from CSR funds towards monthly allowance Training cost to be borne by the Company from CSR funds. Administrative costs to be borne by respective parties (for the Company, reasonable administrative expenses can be counted as CSR expenditure) Participation of companies is voluntary
Applications through an online portal
Company to select from a short list; short listing based on objective criteria with emphasis on those with lower employability
Ineligible candidates (indicative list)
Candidate has IIT, IIM, IISER, CA, CMA etc as qualification
Any member of the family is assessed to Income Tax
Any member of the family is a government employee, etc.
Company is expected to provide the person an actual working experience on a skill in which the company is directly involved.
At least half the time should be in actual working experience/job environment, not in classroom.
In case the Company cannot directly do so, it must tie-up with:
Companies in its forward and backward supply chain (e.g. suppliers or customers) or
Other Companies/Institutions in its Group or otherwise
Will be co-ordinated with State Government initiatives wherever applicable.
Phase 1 of the scheme will be for 2 years followed by Phase 2 for 3 years
Note: Details of the schemes are subject to modification during the process of appraisal and approval.
Annexure to Part B
Amendments relating to Indirect Taxes
A. LEGISLATIVE CHANGES IN CUSTOMS LAWS
A.1 Amendments in the Customs Act, 1962 Section 28 DA is being amended to enable the acceptance of different types of proof of origin provided in trade agreements in order to align the said section with new trade agreements which provide for self-certification.A proviso to sub-section (1) of Section 65 is being inserted to empower the Central Government to specify certain manufacturing and other operations in relation to a class of goods that shall not be permitted in a warehouse.The expression “a class of importers or exporters” is being substituted with “a class of importers or exporters or any other persons” in Section 143AA of the Customs Act for purposes of facilitating trade. Consequential changes are being carried out in clause (m) of subsection (2) of Section 157 of the Customs Act. These changes shall come into effect from date of assent to the Finance (No.2) Bill A.2 Amendments in the Customs Tariff Act, 1975 Section 6 is being omitted on account of winding up of the Tariff Commission. The First Schedule to the Customs Tariff Act, 1975 is being amended to,-increase the rates on certain tariff items with effect from 24.07.2024. create new tariff lines in respect of defence products, technical textiles, sustainable blended aviation fuel, products used in Indian semiconductor machines, e-bicycles, natural menthol, printer cartridge etc. This is to align the tariff lines with WCO classification and better identification of goods. These changes shall come into effect from 01.10.2024. A.3Amendment of Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 The Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 have been amended to insert a provision for New Shipper Review. This will be effective from 24.07.2024.
B. LEGISLATIVE CHANGES IN GST LAWS [Save as otherwise provided, these changes will be brought into effect from a date to be notified in coordination with States, as per recommendations of the GST council]
AMENDMENT FOR TRADE FACILITATIONB.1 Amendment to keep Extra Neutral Alcohol outside the purview of central tax: Section 9 is being amendedto take Extra Neutral Alcohol used in manufacture of alcoholic liquor for human consumption out of the purview of central tax. Similar amendments are also proposed in IGST Act and UTGST Act. B.2 Amendment to regularize non-levy and short-levy of central tax due to general practice Section 11A is being inserted to empower the government to regularize non-levy or short levy of central tax due to any general practice prevalent in trade. Similar power is being proposed in IGST Act, UTGST Act and GST (Compensation to States) Act. B.3 Amendment to relax the time limits to avail input tax credit New sub-sections (5) and (6) are being inserted in section 16 of CGST Act to relax the time limit to avail input tax credit as per section 16(4) of the CGST Act with effect from 01.07.2017, as follows:a) In respect of initial years of implementation of GST, i.e., financial years 2017-18, 2018-19, 2019-20 and 2020-21: In respect of an invoice or debit note for the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the 30th day of November, 2021 b) with respect to cases where returns have been filed after revocation: The time limit to avail input tax credit in respect of an invoice or debit note, in cases where returns for the period from the date of cancellation of registration/ effective date of cancellation of registration till the date of revocation of cancellation of the registration, will be extended till the date of filing the said GSTR-3B return, subject to certain conditions, if the said return is filed by the registered person within thirty days of the order of revocation of cancellation of registration. B.4 Insertion of new section to provide a common time limit for issuance of demand notices and orders Section 74A is being inserted in the CGST Act to provide a common time limit for issuance of demand notices and orders in respect of demands for FY 2024-25 onwards, for cases involving charges of fraud, suppression of facts or wilful misstatement and the cases not involving the charges of fraud, suppression of facts or wilful misstatement etc. Also, the time limit for the taxpayers to avail the benefit of reduced penalty, by paying the tax demanded along with interest, is being increased from 30 days to 60 days. B.5 Amendment to reduce the maximum amount of pre-deposit for filing appeals Sections 107 and 112 of CGST Act are being amended to reduce the maximum amount of pre-deposit for filing appeal with the Appellate Authority from Rs. 25 crore of central tax to Rs. 20 crore of central tax and to reduce the amount of pre-deposit for filing appeal with the Appellate Tribunal from 20% with a maximum amount of Rs. 50 crore of central tax to 10 % with a maximum of Rs. 20 crore of central tax. Besides, the time limit for filing appeals before the Appellate Tribunal is being modified w.e.f. 1st August, 2024 to avoid the appeals from getting time barred, on account of Appellate Tribunal not coming into operation. B.6 Amendment to provide conditional waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periodsSection 128A is being inserted in the CGST Act to provide for a conditional waiver of interest and penalty in respect of demands pertaining to financial years 2017-18, 2018-19 and 2019-20, in cases where demand notices have been issued under section 73 and full tax liability is paid by the taxpayer before a date to be notified. B.7 Amendment to enable availment of the transitional credit of eligible CENVAT credit by Input Services Distributor in respect of invoices received prior to the appointed date Section 140(7) of CGST Act is being amended with effect from 01.07.2017, to enable availment of transitional credit in respect of input services received by an Input Services Distributor prior to the appointed day, where invoices were also received prior to the appointed day. B.8 Amendment to empower Government to notify Appellate Tribunal to handle anti-profiteering cases and to provide for a sunset clause for accepting anti-profiteering cases Section 171 of CGST Act is being amended to enable the Government to notify the GST Appellate Tribunal to handle anti-profiteering cases and to empower the Government to notify a date after which the Authority for anti-profiteering shall not accept applications for examination. B.9 Amendment to clarify various activities in insurance sector as neither a supply of goods nor a supply of services Paragraphs 8 and 9 are being inserted in Schedule III of CGSTActto provide that the activity of apportionment of co-insurance premiums by the lead insurer to the co-insurers in the co-insurance agreement and the services by insurers to reinsurers in respect of ceding/re-insurance commission will, subject to certain conditions, be treated neither as a supply of goods nor as a supply of services. OTHER LAW AMENDMENTS IN CGST ACTB10. Amendment to clarify time of supply of services in reverse charge supplies. Amendment is proposed in Section 13 of CGST Act to provide for time of supply of services where the invoice is required to be issued by the recipient of services in cases of reverse charge supplies. B11. Amendment to restrict blockage of input tax credit for tax paid under section 74 to demands upto Financial Year 2023-24 Clause (i) of Section 17 of CGST Act is being amended to restrict blockage of input tax credit for tax paid under Section 74 for demands pertaining up to FY 2023-24. B12. Amendment to provide for conditions and restrictions for revocation of cancellation of registration Section 30 of the CGST Act is being amended to enable the government to prescribe conditions and restrictions for revocation of cancellation of registration. B13. Amendment to prescribe the time period for issuance of invoice by recipient in Reverse Charge Mechanism supplies Clause (f) of section 31 of CGST Act is being amendedto provide for an enabling provision to prescribe the time period within which the invoice has to be issued by the recipient under reverse charge mechanism and to clarify that a person registered solely for purpose of deducting TDS under section 51 of CGST Act shall be treated as a person not registered for the purpose of clause (f) of section 31(3) of the said Act. B14. Amendment to make filing of monthly returns by TDS deductors mandatory. Section 39 is being amended to mandate filing of returns by TDS deductors for every month, even if no deductions are made during the said month, and also to provide for an enabling clause for prescribing the time limit for filing such returns. B15. Amendment to prohibit refund in zero rated supply of goods where such goods are subjected to export duty. Section 54 of CGST Act and section 16 of IGST Act are being amended to prohibit refund of unutilized input tax credit or integrated tax on zero-rated supply of goods, which are subjected to export duty. B16. Amendment for allowing appearance by authorised representative on behalf of a summoned person Sub-section 1A is being inserted in section 70 of the CGST Act to enable appearance by an authorized representative on behalf of a summoned person. B17. Amendment to empower the government to notify cases which shall be heard only by the principal Bench of GST Appellate Tribunal Section 109 of CGST Act is being amended to empower the government to specify cases to be heard only by the Principal Bench of the Appellate Tribunal. B18. Amendment to restrict applicability of penal provisions under Section 122(1B) to Electronic Commerce Operators who deduct TCS Section 122(1B) of CGST Act is being amended w.e.f. 01.10.2023 to restrict the applicability of penal provisions under this section to only those Electronic Commerce Operators who are required to collect tax at source under section 52. B19. Consequential amendments due to insertion of new section 74A in the CGST Act Sections 73 and 74 of CGST Act are being amended to limit the applicability of these sections to demands up to FY 2023-24, since from FY 2024-25 onwards demands are to be ascertained as per provisions of newly inserted section 74A. Also, Section 75 of CGST Act is being amended to allow for redetermination of penalties if the charges of fraud, suppression, or wilful misstatement are not established. Further, references to section 74A or the concerned sub-sections of section 74A are being inserted in section 10, section 21, section 35, section 49, section 50, section 51, section 62, section 63, section 64, section 65, section 66, section 104 and section 127.
C.2 Amendment of Central excise duty notification dated 17.3.2012 Notification No 12/2012-Central Excise dated 17.3.2012 is being amended to extend the time period for submission of the final Mega Power Project certificate from 120 months to 156 months. The changes will come into effect from date of assent to the Finance (No.2) Bill 2024
C.3 Exemption from Clean Environment Cess The Clean Environment Cess , levied and collected as a duty of excise, is being exempted on excisable goods lying in stock as on 30th June, 2017 , subject to payment of appropriate GST Compensation Cess on supply of such goods on or after 1st July, 2017.The changes will come into effect from date of assent to the Finance (No.2) Bill 2024
D.1. Reduction in customs duty to reduce input costs, deepen value addition, promote export competitiveness, correct inverted duty structure, boost domestic manufacturing etc [with effect from 24.07.2024]
S. No.
Commodity
From(per cent)
To(per cent)
I.
Agricultural Products
1.
Shea nuts
30
15
II.
Aquafarming & Marine exports
1
Prawn and Shrimps feed
15
5
2
Fish feed
15
5
3.
Following inputs for manufacture of Prawn and Shrimps feed or fish feed: Mineral &vitamin pre mixesKrill MealFish lipid oilCrude fish oilAlgal prime (flour)Algal oil
30/15/5
Nil
4
Artemia
5
Nil
5
Artemia cysts
5
Nil
6
SPF Polychaete worms
30
5
7
Live SPF Vannamei shrimp (Litopenaeus vannamei) broodstock & Live Black tiger shrimp (Penaeus monodon) broodstock
10
5
8
Insect Meal for use in R&D for aquatic feed manufacturing
15
5
9
Single Cell Protein from Natural Gas for use in R&D for aquatic feed manufacturing
15
5
10
Pre-dust breaded powder for use in processing of sea-food
Platinum and Palladium used in the manufacture of noble metal solutions, noble metal compounds and catalytic convertors
7.5
5
9.
Bushings made of platinum and rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India
7.5
5
VI.
Textile and Leather Sector
1.
MDI for manufacture of spandex yarn
7.5
5
2.
Wet white, Crust and finished leather for manufacture of textile or leather garments, leather /synthetic footwear or other leather products, for export
10
Nil
3.
Certain additional accessories and embellishments for manufacture of textile or leather garments, leather/synthetic footwear or other leather products, for export
As applicable
Nil
4.
Real Down Filling material from duck or goose for use in manufacture of textile or leather garments for export
Certain additional goods for use in petroleum exploration operations
As applicable
Nil
2.
Certain additional capital goods for use in manufacture of solar cells and modules
7.5
Nil
X.
Shipping Sector
1.
Components and consumables for manufacture of vessels
As applicable
Nil
2.
Technical documentation and spare parts for construction of warships
As applicable
Nil
XI.
IT and Electronics
1.
Cellular Mobile Phone
20
15
2.
Charger/Adapter of cellular mobile phone
20
15
3.
Printed Circuit Board Assembly (PCBA) of cellular mobile phone
20
15
4
Specified goods for use in manufacture of connectors
5/7.5
Nil
5.
Oxygen Free Copper for use in manufacture of Resistors
5
Nil
XII.
Medical Equipment
1.
All types of polyethylene for use in manufacture of orthopedic implants
As applicable
Nil
2.
Special grade stainless steel, Titanium alloys, Cobalt-chrome alloys, and all types of polyethylene for use in manufacture of other artificial parts of the body
As applicable
Nil
3.
X-ray tubes and Flat panel detectors (including scintillators) for use in manufacture of medical, surgical, dental or veterinary X-ray machines
15
5 (till 31.03.2025) 7.5 (1.4.2025 to 31.3.2026) 10 (1.4.2026 onwards)
D.2. Increase in Customs duty [with effect from 24.07.2024]
S. No.
Commodity
Rate of duties
From(per cent)
To(per cent)
I.
Plastics and Chemicals
1.
Ammonium Nitrate
7.5
10
2.
PVC Flex Films/Flex Banners
10
25
II
Chemicals
1
Laboratory Chemicals under heading 9802
10
150
III.
Renewable Sector
1.
Solar Glass for manufacture of solar cells or modules
Nil
10 (w.e.f 1.10.24)
2.
Tinned Copper Interconnect for manufacture of solar cells or modules
Other roasted nuts and seeds, including areca nuts
30
150
2
Other nuts, otherwise prepared or preserved , including areca nuts
30
150
D.4 Rationalization of Export duty on Raw hides, skins and leather [with effect from 24.07.2024]
S. No.
Commodity
Rate of duties
From(per cent)
To(per cent)
1
Raw Hides & skins, all sorts (other than buffalo)
40
40
2
Raw Hides & skins of buffalo
30
30
3
Raw fur and skins including lamb fur skin
60/10
40
4
Wet Blue Chrome Leather
40
20
5
Crust Leather
40
20
6
Tanned fur skin
60
20
7
E.I. Tanned Leather
Nil
Nil
8
Finished leather (as defined by DGFT)
Nil
Nil
E. Trade Facilitation Measures
E.1. Increase in duration for re-import of goods exported out of India The time-period of duty free re-import of goods (other than those under export promotion schemes) exported out under warranty from India has been increased from 3 years to 5 years, further extendable by 2 years. E.2.Increase in duration for export of articles of foreign origin imported into India for repairs Currently, articles of foreign origincan be imported into India for repairs subject to their re-exportation within six months extendable upto 1 year. The duration for export in the case of aircraft and vessels imported for maintenance, repair and overhauling has been increased from 6 months to 1 year, further extendable by 1 year.
F. OTHERS
There are few other changes of minor nature. For details of the budget proposals, the Explanatory Memorandum and other relevant budget documents may be referred to.
Annexure to Part B
Amendments relating to Direct Taxes
Providing tax relief
A.1 Substantial relief is proposed under the new tax regime with new slabs and tax rates as under:- Total income Rate of tax Upto ` 3,00,000 Nil From ` 3,00,001 to ` 7,00,000 5 per cent From ` 7,00,001 to ` 10,00,000 10 per cent From ` 10,00,001 to ` 12,00,000 15 per cent From ` 12,00,001 to ` 15,00,000 20 per cent Above ` 15,00,000 30 per cent A.2 Standard deduction: Standard deduction to salaried individuals and pensioners is proposed to be increased from ` 50,000 to ` 75,000 under the new tax regime. A.3 Family pension deduction: Deduction from family pension of ` 15,000 is proposed to be increased to ` 25,000 under the new tax regime. A.4 Non-government employer contribution to New Pension scheme: It is proposed to increase the amount of deduction allowed to an employer in respect of his contribution to a pension scheme referred to in section 80CCD, from the extent of 10% to the extent of 14% of the salary of the employee. Further, a non-government employee in the new tax regime shall be allowed deduction of an amount not exceeding 14% of the employee’s salary in place of 10%.
Measures to promote investment and employment
B.1 Incentives to IFSC It is proposed that retail schemes and Exchange Traded Funds in IFSC, shall enjoy tax exemptions along similar lines as available to specified funds.It is further proposed to exempt certain income of Core Settlement Guarantee Fund set up in IFSC. It is proposed to exclude the applicability of section 94B to certain finance companies located in IFSC.It is proposed that where a venture capital fund (VCF) located in IFSC extends a loan / other amount to an assessee, it shall no longer be called upon to explain the source of funds.Further, it is proposed that surcharge shall not apply on income-tax payable on income from securities by specified funds. B.2 Reduction of rate of foreign companies to 35 per cent: It is proposed to reduce the rate of income-tax chargeable on income of foreign company (other than that chargeable at special rates) from 40 per cent to 35 per cent. B.3 Tax on share premium: It is proposed that the provisions of clause (viib) of sub-section (2) of section 56 of the Act related to tax on share premium of private companies shall not apply from the financial year 2024-25. B.4 Scheme of presumptive taxation for cruise ship operations by non-residents: It is proposed to put in place a presumptive taxation regime for cruise ship operations of non-residents. Further, it is proposed to provide exemption for any income of a foreign company from lease rentals of cruise ships, received from a related company which operates such ship or ships in India.
Simplification and Rationalisation
C.1 Introduction of block assessment scheme for search and seizure cases: It is proposed to introduce a new scheme of block assessment for search cases. The block period is proposed to be six previous years and the period up to the date of conclusion of search. Total income of the block period is proposed to be taxed at the rate of 60 per cent. C.2 Reducing the time-limit for which reassessment can be done and rationalisation of the provisions: Time limit for reassessment is proposed to be reduced from ten years to five years. Further, there are proposals to rationalise the procedure for reassessment.Further,it is proposed to omit reference to Principal Chief Commissioner or Chief Commissioner in section 275 to provide clarity of time limitation for imposition of penalties. It is also proposed to withhold refund up to sixty days of assessment under section 245 and to rationalise time limit to file appeal to ITAT under section 253. C.3 Charitable trusts/ Institutions It is proposed to make amendments to merge the two schemes for exemption and also provide for rationalisation of filing of applications and the timelines for registration and approval of certain benefits to charitable trusts and institutions. C.4Simplification of taxation of Capital Gains: The taxation of capital gains is proposed to be rationalised and simplified. Short term gains on specified financial assets shall henceforth attract a tax rate of 20 per cent instead of 15 per cent, while that on all other financial assets and non-financial assets shall continue to attract the applicable tax rate. Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, it is proposed to increase the limit of exemption of capital gains on certain listed financial assets from ₹ 1 lakh to ₹ 1.25 lakh per year. Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term. Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates. These proposals are proposed to be given effect with immediate force. C.5 Rationalisation of tax deducted at source (TDS) rates: It is proposed to bring down TDS rates from 5 per cent to 2 per cent in certain sections and omit section 194F where TDS rate is 20 per cent, as given below: Section Present TDS Rate Proposed TDS Rate With effect from Section 194D – Payment of insurance commission (in case of person other than company) 5% 2% 1.4.2025 Section 194DA – Payment in respect of life insurance policy 5% 2% 1.10.2024 Section 194G – Commission etc on sale of lottery tickets 5% 2% 1.10.2024 Section 194H – Payment of commission or brokerage 5% 2% 1.10.2024 Section 194-IB – Payment of rent by individual or HUF 5% 2% 1.10.2024 Section 194M – Payment of certain sums by certain individuals or Hindu undivided family 5% 2% 1.10.2024 Section 194-O – Payment of certain sums by e-commerce operator to e-commerce participant 1% 0.1% 1.10.2024 Section 194F relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India Proposed to be omitted 1.10.2024 C.6 Credit of TDC and TCS: It is proposed to allow credit of all tax deducted or collected while computing the amount of tax to be deducted on salary income under section 192. C.7 Claiming credit for TCS of minor in the hands of parent: It is proposed to empower the Board to make rules to provide credit of tax collected to person other than collectee. C.8 Alignment of interest rate on delayed payment on TCS with TDS: It is proposed to increase the rate of simple interest from 1 per cent to 1.5 per cent on delayed payments of TCS after collection, as in the case of TDS. C.9 Increase in limit of remuneration to working partners of a firm allowed as deduction: It is proposed to increase the limit of remuneration to working partners to ` 3,00,000 or 90 per cent of the book-profit, whichever is more, on the first ` 6,00,000 of the book-profit or in case of a loss.
Widening and deepening of tax base and anti-avoidance
D.1 Buy-back of shares: It is proposed that the income from buy-back of shares by companies be chargeable in the hands of recipient investor as dividend, instead of the current regime of additional income-tax in the hands of the company. Further, the cost of such shares shall be treated as a capital loss to the investor. D.2 Securities transaction tax (STT) rates: It is proposed to increase the rates of STT on sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium, and on sale of a futures in securities from 0.0125 per cent to 0.02 per cent of the price at which such futures are traded. D.3 Income from letting out of house property: It is proposed that income from letting out of a house or part of the house by the owner, shall not be charged under the head ‘profits and gains of business or profession’ and will be chargeable to tax under the head ‘income from house property’ only. D.4 Transfer of capital asset: It is proposed to provide that the transfer of a capital asset, under a gift or will or an irrevocable trust, by an entity other than an individual or a Hindu undivided family (HUF) only, shall be regarded as transfer for the purpose of calculation of capital gain. D.5 TDS on payment to a partner: It is proposed that payments made by firm to its partner in the nature of salary, remuneration, commission, bonus and interest, etc shall be subject to TDS at the rate of 10 per cent for aggregate amounts more than ` 20,000 in a financial year. D.6 TCS on notified luxury goods: To enable TCS on luxury goods, it is proposed to levy TCS of 1 per cent on notified goods of value exceeding ten lakh rupees. D.7 TDS on sale of immovable property: It is proposed to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property. D.8 TDS on Floating Rate Savings (Taxable) Bonds (FRSB) 2020: TDS is proposed on interest exceeding ten thousand rupees on Floating Rate Savings (Taxable) Bonds (FRSB) 2020 or any other notified security of the Central or State Governments. D.9 Inadmissibility of non-business expenditure by life insurance companies: It is proposed to provide that any expenditure which is not admissible under the provisions of section 37 in computing the profits and gains of a business shall be included to the profits and gains of the life insurance business. D.10 Inclusion of taxes withheld outside India for purposes of calculating total income: It is proposed to provide that income tax paid outside India by way of deduction is deemed to be income received for the purpose of computing the income of the assessee. D.11 Excluding income mentioned in section 194J from applicability of section 194C: It is proposed to explicitly state that any sum referred to in sub-section (1) of section 194J (fees for professional or technical services) does not constitute “work” for the purposes of TDS under section 194C (payments to contractors). D.12 Claim of settlement amounts as business expenditure: It is proposed to disallow expenses incurred as settlement fees for any contravention of law, as may be notified by the Central Government. D.13 Definition of Fair Market Value (FMV): It is proposed to provide for a method of calculation of fair market value on 31.01.18 under section 55(2) (ac) in the case of sale of unlisted equity shares in an offer for sale in an initial public offer.
Tax Administration
E.1 Introduction of Vivad se Vishwas Scheme, 2024: It is proposed to introduce a new scheme for settlement of pending appeals. It is proposed to be made operational from a specified date. Last date for the scheme is also proposed to be notified. E.2 Equalisation Levy: It is proposed that Equalisation Levy at the rate of 2 per cent of consideration received for e-commerce supply of goods or services, shall no longer be applicable on or after 1st August, 2024. E.3 Non-reporting of small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to ₹ 20 lakh is proposed to be de-penalised.E.4 It is proposed to decriminalize late payment of tax deducted at source (TDS) , if the payment is made before the time prescribed for filing the TDS statement. E.5 It is proposed to provide that no order for failure to deduct/ collect tax from any person shall be passed after the expiry of six years from the end of the financial year in which payment is made. E.6 Enabling processing of statements other than those filed by deductors: It is proposed to provide that the Board may make a scheme for processing of such statements. E.7 Lower deduction / collection certificate of tax at source: It is proposed to allow for application for lower deduction / collection certificate of tax for section 194Q (TDS on payment for purchase of goods) and sub-section (1H) of section 206C (TCS on receipt of sale of goods). E.8 Notification of certain persons or class of persons as exempt from TCS: It is proposed to empower the government to notify persons or class of persons from whom no collection of tax shall be made or collection of tax shall be made at a lower rate in respect of specified transactions. E.9 Time limit to file correction statement for TDS/TCS statements: It is proposed to provide that no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the TDS/TCS statement are respectively required to be delivered. E.10 Penalty for failure to furnish statements: It is proposed to provide for penalty on late furnishing of TDS or TCS statement beyond one month instead of the existing period of 12 months. E.11 It is proposed to prescribe the period within which annual statement of activities of a liaison office is required to be furnished. It is further proposed to provide for penalty on failure of submission of annual statement within the due period. E.12 It is proposed to enable the Transfer Pricing Officer to deal with specified domestic transactions which have not been referred to him by the Assessing Officer. E.13 It is proposed to discontinue the quoting of Aadhaar Enrolment ID in place of Aadhaar number. E.14 It is proposed to provide those applications before the Board for Advance Rulings transferred from Authority of Advance Rulings may be allowed to be withdrawn before 31.10.2024. E.15 It is proposed to empower Commissioner (Appeals) to set aside ex-parte assessment orders. E.16 Amendment in Section 271FAA: It is proposed to amend section 271FAA to provide for a penalty on failure to comply with due diligence requirement relating to compliance with Automatic Exchange of Information (AEOI). E.17 Tax Clearance Certificate: It is proposed to include reference of Black Money Act, 2015 for the purposes of obtaining a tax clearance certificate. E.18 Returns filed after condonation of delay: It is proposed that in respect of returns filed after condonation of delay, the assessment can be made up to 12 months from the end of the financial year in which such return was furnished. E.19 Donations to National Sports Development Fund: Any sums paid as donations to the National Sports Fund set up by the Central Government are presently eligible for deduction under section 80G. The name of the fund is proposed to be corrected as National Sports Development Fund. E.20 Removing reference to National Housing Board: As housing finance companies are now under the purview of the Reserve Bank of India as a category of Non-Banking Financial Companies (NBFCs), it is proposed to remove reference to National Housing Board in section 43D of the Act. E.21 Adjusting liability under Black Money Act, 2015 against seized assets: It is proposed to insert reference of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in the section 132B of the Income-tax Act, 1961 so as to enable recovery of liabilities under the Act out of seized assets. E.22 Amendments to the Prohibition of Benami Property Transactions Act, 1988: It is proposed to provide immunity from penalty and prosecution to benamidar on full and true disclosure. It is also proposed to rationalize time limits for attachment of property and reference to adjudicating authority.
