A reduction in the basic customs duty on components of smartphones to 15 percent, announced by Finance Minister Nirmala Sitharaman, in the 2024 Union Budget.
Made In India Smartphones Gets Cheaper
The move is mainly focused towards making smartphones more affordable for consumers along with boosting the mobile industry in India.
Besides this the reduction of customs duty on mobile phones and related parts will help smartphone makers to reduce the prices of their made-in-India devices.
Please note here that the same will not be applicable for devices imported as Completely Built Units (CBUs).
In addition to this, the center has also announced a 100 percent exemption in customs duty on three specific medicines for cancer patients, hence making these essential drugs more accessible.
The government is also providing a relief in customs duty on X-ray tubes and flat panel detectors, aiming to make medical diagnostics cheaper and more accessible.
“This is a very positive step in the right direction. This can possibly rationalize the prices especially in the mass segments like below 25k and give growth in domestic consumption of phones,” said Navkendar Singh, Associate Vice President with IDC India.
Further adding, “Moreover, this is a welcome step to give a boost for expansion in device manufacturing capacity in India.”
“The reduction of basic customs duty on smartphone parts to 15 per cent is a pivotal step in deepening India’s smartphone manufacturing capabilities. This move is anticipated to further bolster local assembly, attract global investments, and position India as a global smartphone manufacturing hub,” said Prabhu Ram, VP – Industry Research Group, CyberMedia Research (CMR).
Revised Income Tax Slabs
It appears that the Finance Minister Nirmala Sitharaman has adjusted the tax slabs, while providing some relief to taxpayers.
As we know that presently, there are two tax regimes available.
As per the Old Tax Regime, it offers a wide range of deductions and exemptions.
While, the New Tax Regime features a lower tax rate but has limited deductions and exemptions, except for the standard deduction.
It can be observed that the finance minister has introduced significant changes to the New Tax Regime.
Its primary feature is its reduced tax rate compared to the Old Regime, which still allows for various deductions and exemptions.
New Income Tax Slabs
Up to ₹3,00,000: Nil
₹3,00,001 to ₹7,00,000: 5%
₹7,00,001 to ₹10,00,000: 10%
₹10,00,001 to ₹12,00,000: 15%
₹12,00,001 to ₹15,00,000: 20%
Above ₹15,00,000: 30%
