It's Budget Time.

Hello,
The Union Budget has arrived, and it’s making waves across the headlines with its significant impact on Indian industries. As expected, the markets ended the day flat after experiencing increased volatility during the budget announcement. In today’s newsletter, we’re dedicating our coverage entirely to the budget, with a special focus on the key tax reforms and changes affecting individuals, corporations, and various industries. Don’t miss out on this comprehensive update!

Markets📊 
As of 23/07/2024 Market Close

• The Sensex and Nifty 50 indices ended Tuesday, July 23, nearly unchanged. During the budget speech, there was a sharp decline across the board, followed by a V-shaped recovery.

• Given the significant rebound of market benchmarks from the day's lows, it appears that the Indian stock market largely brushed off worries about increased taxes on capital gains.

Notable Gainer & Loser📈📉 

Titan Company Ltd +6.56%

• The Budget proposed reducing the customs duty on gold and silver from 15% to 6%. Additionally, the customs duty on platinum was lowered from 15.4% to 6.4%.

• Following these announcements, shares of leading companies in the gold and silver sector, such as Kalyan Jewellers, Titan Ltd, and Rajesh Exports, surged by up to 8%.

Nifty Realty Ltd (2.29%)

• Real estate stocks declined after Finance Minister Nirmala Sitharaman proposed eliminating the indexation benefit for calculating long-term capital gains tax (LTCG) on real estate.

• The Nifty Realty index dropped 2.6 percent in afternoon trading on July 23. DLF's stock fell over 6 percent to a day's low of Rs 778.2 following the Budget 2024 announcement.

Yesterday’s Highlights📒 

• The retail industry expects that budget initiatives will raise disposable income and boost spending. (ET)

• Budget 2024: Corporate tax rate for foreign companies reduced from 40% to 35%. (FP)

• MSME Budget 2024: New credit guarantee scheme, support during financial stress, and other benefits announced for MSMEs. (Mint)

• SIDBI's project receives $215.6 million in funding from the Green Climate Fund. (YS)

• Five ways Budget 2024 impacts the Indian start-up ecosystem. (YS)

• Consumer electronics players believe budget measures will enhance competitiveness in both domestic and export markets. (ET)

• Budget 2024: Major relief for startups with the abolition of angel tax. (YS)

• The Auto industry believes that customs duty exemptions on lithium and cobalt will support the growth of the EV sector. (ET)

• The government reduces import duty on mobile phones and chargers. (YS)

• FM Sitharaman announces a ₹1,000 crore VC fund to enhance the space economy. (YS)

• The government proposes to establish e-commerce hubs in a public-private partnership (PPP) model to boost exports. (BS)

Featured Highlight💡 

Tax Proposals in the Union Budget 2024

1. Changes in Custom Duty:

   • Three additional cancer medicines are now fully exempt from customs duties.

   • Domestic value addition in the mobile industry is supported, with reductions in Basic Customs Duty (BCD) to 15% on mobile phones, mobile PCBA, and chargers.

   • Customs duty on gold and silver reduced to 6%, and on platinum to 6.4%.

   • More capital goods for manufacturing solar cells and panels are exempt from customs duties.

   • Customs duties are fully exempted on 25 critical minerals.

2. Direct Tax Proposals:

   • Short-term gains from financial assets now taxed at 20%.

   • Long-term gains on all financial and non-financial assets are now taxed at 12.5%.

   • The exemption limit for capital gains on financial assets increased to ₹1.25 lakh per year.

   • Angel tax was abolished for all investor categories.

   • Simplified tax regime for operating domestic cruises.

   • Safe harbour rates were introduced for foreign mining companies selling raw diamonds.

   • Corporate tax rate for foreign companies reduced from 40% to 35%.

3. Changes in New Tax Regime:

   • Standard deduction for salaried employees increased from ₹50,000 to ₹75,000.

   • Deduction for family pension increased from ₹15,000 to ₹25,000.

IPO / Issuances🚀 

• SpiceJet plans to raise $360 million through the sale of securities. (BS)

• Sanstar's IPO saw robust demand, subscribed 83 times with major support from QIBs and NII. (Moneycontrol)

This week’s mainboard IPO schedule

• Sanstar (RHP)

  • Offering Period: 19-23 July, 2024

  • Listing Date: 26 July, 2024

  • Issue Price: 90-95

  • Lot Size: 150

Enjoy this newsletter? Forward to a friend and have them signup here.