Union Budget 2024: Glad that FM read Congress manifesto after election results, says Chidambaram

P Chidambaram. Pic/PTI

Congress leader P Chidambaram on Tuesday took a swipe at the government over the Union Budget 2024, saying he is glad that Finance Minister Nirmala Sitharaman has read the Congress 2024 manifesto after the Lok Sabha poll results.

Sitharaman presented the Union Budget 2024, her 7th straight presentation surpassing the record of former prime minister Morarji Desai. This was the first Budget during Prime Minister Narendra Modi-led government's third term in office.

In a post on X, Chidambaram said, "I am glad to know that the Hon'ble FM has read the Congress Manifesto LS 2024 after the election results. I am happy she has virtually adopted the Employment-linked incentive (ELI) outlined on page 30 of the Congress Manifesto."

"I am also happy that she has introduced the Apprenticeship scheme along with an allowance to every apprentice spelt out on page 11 of the Congress Manifesto. I wish the FM had copied some other ideas in the Congress Manifesto. I shall shortly list the missed opportunities," the former finance minister said.

Chidambaram said he was also pleased to hear that the Finance Minister will abolish the Angel Tax.

The Congress has pleaded for its abolition for many years and most recently in the Congress manifesto on page 31, he said.

Meanwhile, in what may come as somewhat of a dampener for stock market investors, Finance Minister Nirmala Sitharaman as part of her Union Budget 2024 speech on Tuesday announced an increase in both long-term and short-term capital gains tax, reported ANI.

As per definition, any profit or gain that arises from the sale of a 'capital asset' is a capital gain.

Sitharaman announced that short-term capital gains on "specified" financial assets will henceforth attract a tax rate of 20 per cent instead of 15 per cent. While all other financial assets and non-financial assets shall continue to attract the "applicable tax rate", reported ANI.

Long-term gains on all financial and non-financial assets will attract a tax rate of 12.5 per cent instead of 10.0 per cent.

On the positive side, for the benefit of the lower and middle-income classes, it was proposed to increase the limit of exemption of capital gains on certain listed financial assets from Rs 1 lakh to Rs 1.25 lakh per year.

Listed financial assets held for more than a year is 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 the holding period, however, will attract tax on capital gains at applicable rates," Sitharaman said in her Union Budget 2024 speech, reported ANI.

All these proposals will come into force immediately.

Further, to bolster the Indian start-up eco-system, boost the entrepreneurial spirit and support innovation, Finance Minister Nirmala Sitharaman proposed to abolish the so-called angel tax for all classes of investors.

(With inputs from Agencies)