Budget 2024: Middle Class Gets Significant Boost with Education, Housing, and Tax Benefits

In a bid to provide substantial relief and support to the middle class, Budget 2024 introduces a series of measures aimed at enhancing educational opportunities, supporting entrepreneurs, improving housing, and offering tax benefits.

Higher Education Support:

For students pursuing higher education in domestic institutions, the government will provide financial support for loans up to Rs 10 lakh. Additionally, e-vouchers will be issued to provide an annual interest subvention of 3% of the loan amount, making education more accessible and affordable.

Boost for Entrepreneurs:

The limit for MUDRA loans has been increased from Rs 10 lakh to Rs 20 lakh for entrepreneurs who have availed and successfully repaid previous loans under the 'Tarun' category. This enhancement aims to further empower small businesses and startups, fostering entrepreneurial growth and innovation.

Housing Initiatives:

The government has earmarked Rs 10 lakh crore under PM Awas Yojana 2.0 to address the housing needs of 1 crore urban and middle-class families. This significant investment will ensure the provision of affordable housing with an added provision for interest subsidies to ease the financial burden on families.

Rental Housing Market Reforms:

To create a more efficient and transparent rental housing market, enabling policies and regulations will be introduced. These reforms aim to streamline rental processes, protect tenant rights, and encourage private investment in rental housing.

Tax Benefits for Salaried Employees and Pensioners:

The Standard Deduction for salaried employees under the New Regime will be increased from Rs 50,000 to Rs 75,000, providing additional tax relief. For pensioners, the deduction on family pension will be enhanced from Rs 15,000 to Rs 25,000 under the New Regime, ensuring better financial security for retirees.

Capital Gains and Social Security Enhancements:

The exemption limit for Long Term Capital Gains on certain financial assets has been raised to Rs 1.25 lakh per year, offering more significant tax savings for investors. Additionally, to improve social security benefits, the deduction of expenditure by employers towards the National Pension System (NPS) will be increased from 10% to 14% of the employee's salary, ensuring better retirement benefits for workers.

Also Read: Union Budget 2024 Live Updates: Highlights Of Sitharaman's Speech