• The Daily Hints
• 27 Jan, 2025

Union Budget 2025 will be presented on February 1st by Finance Minister Nirmala Sitharaman. While every citizen, business owner and industry leader eagerly awaits it, the jargon-heavy language of the budget often leaves people confused. Here’s a simplified guide to some key budget terms to help you understand better.

Important Budget Terms You Should Know

1. Rebate

- The portion of tax that is deducted after applying tax calculations. This reduces your overall tax liability.

2. Old Tax Regime

- Features four income tax slabs with a 30% tax rate for incomes above Rs 10 lakh.

3. New Tax Regime

- Offers seven tax slabs with basic exemptions increased to Rs 3 lakh. For incomes between Rs 3 lakh and Rs 7 lakh a 5% tax rate applies.

4. Inflation

- The rate at which the prices of goods and services increase over a specific period, reducing purchasing power.

5. Direct Tax

- Taxes like income tax and corporate tax that are directly paid to the government by individuals or companies.

6. Capital Expenditure (Capex)

- Spending by businesses to enhance their infrastructure, efficiency and production capabilities.

7. Cess

- An additional tax imposed on top of existing taxes, used for specific purposes like education or health.

8. Disinvestment

- The process where the government sells its shares in public sector enterprises.

9. Tax Collected at Source (TCS)

- A tax collected by sellers from buyers while selling certain goods or services. 

10. Tax Deduction

- The portion of income exempted from tax, often linked to investments or expenses like insurance premiums.

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Gold Import Duty, What Lies Ahead.?

Last year the government reduced the import duty on gold from 15% to 6% aiming to stabilise gold prices and curb illegal trade. This step significantly increased gold imports but raised concerns over the widening trade deficit.

Will the Duty Increase Again.?

Speculations suggest the government might increase import duties to control the trade deficit potentially leading to a rise in gold prices.

Read More: Will Bally Bridge and Sealdah to Dankuni Train Services Return to Normal Today.?

Current Gold Prices (January 24, 2025)

  - 24 carat gold: Rs 8,019 per gram.

  - 22 carat gold (Jewellery): Rs 7,620 per gram.

India the world’s second largest gold consumer relies heavily on imports to meet its demand. Any hike in duties will impact both costs and demand in the domestic market.

Understanding budget terms can help you make informed financial decisions. As the Union Budget 2025 approaches, stay updated to plan wisely for the future.