Union Budget 2024: Top 5 takeaways for salaried persons
Union Budget 2024: Nirmala Sitharaman presented the Union Budget 2024-25.
Union Budget 2024: Finance minister Nirmala Sitharaman on Tuesday presented the Union Budget 2024-25 during the Monsoon Session of Parliament. Nirmala Sitharaman became the first finance minister to present seven consecutive budget speeches, surpassing former prime minister Morarji Desai’s record of six consecutive budgets as finance minister between 1959 and 1964.
Union Budget, Nirmala Sitharaman outlined key priorities aimed at fostering economic growth and creating ample opportunities. These included productivity and resilience in agriculture, employment and skilling and services.
“India’s economic growth continues to be the shining exception and will remain so in the years ahead,” Sitharaman said while presenting the Budget in the Parliament. “In this Union budget, we particularly focus on employment, skilling, MSMEs, and the middle class.”
Hike in standard deduction
In the Union budget, finance minister Nirmala Sitharaman announced an increase in the standard deduction for salaried employees from ₹50,000 to ₹75,000 under the new income tax regime – an increase of 50%.
Standard deduction refers to a flat deduction from the total salary earned by an employee in a year before calculating the applicable income tax rate.
Notably, no change has been announced regarding the standard deduction in the old tax regime .
Union Budget: New income tax slabs
In her budget speech, Nirmala Sitharaman also announced relaxation in the income tax slabs under the new tax regiment for the current fiscal year.
The new income tax slabs announced are as follows:
- Up to ₹3 lakh: 0%
₹3 to ₹7 lakh: 5%
₹7 lakh to ₹10 lakh: 10%
₹10 lakh to ₹12 lakh: 15%
₹12 lakh to ₹15 lakh: 20%
Above ₹15 lakh: 30%
“As a result of these changes, a salaried employee in the new tax regime stands to save up to ₹17,500/- in income tax,” she announced.
Increase in tax deduction on family pension
Sitharaman also announced a plan to increase the family pension deduction amount for the better financial stability of salaried individuals and pensioners.
The deduction amount is proposed to be increased to ₹25,000 from ₹15,000, under the new tax regime.
“Deduction on family pension for pensioners is proposed to be enhanced from ₹15,000 to ₹25,000,” the finance minister said, adding that the move will provide relief to about 4 crore salaried individuals and pensioners.
One month wage to all new entrants in formal sector
Nirmala Sitharaman also announced that the government will provide a one-month wage to all persons newly entering the workplace in all formal sectors. This, the finance minister said, the government will directly transfer the amount to the employees as their provident fund contribution.
“…One month’s wage to all persons newly entering the workplace in all formal sectors. Direct Benefit Transfer of one month’s salary in 3 instalments to first-time employees as registered in the EPFO will be up to ₹15,000. The eligibility limit will be a salary of ₹1 lakh per month. The scheme will benefit 210 lakh youth,” the finance minister said while presenting the Budget.
Read Also: LIVE Budget 2024
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