Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25, marking her seventh consecutive budget. This budget focuses on economic growth and opportunities, especially for salaried individuals and job seekers.
1. Higher Standard Deduction
The standard deduction for salaried employees under the new tax regime has been increased from ₹50,000 to ₹75,000. This means employees can reduce their taxable income by a higher amount, lowering their tax bills.
2. New Income Tax Slabs
The new income tax slabs for the fiscal year are:
- 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%
These changes could save employees up to ₹17,500 in taxes.
3. Increased Family Pension Deduction
The deduction for family pensions has been increased from ₹15,000 to ₹25,000 under the new tax regime, providing more financial support to pensioners and their families.
4. One Month’s Wage for New Formal Sector Employees
New employees in the formal sector will receive a one-month wage directly transferred to their provident fund. This applies to those earning up to ₹1 lakh per month and is expected to benefit about 2.1 crore young people. Employers will also get incentives and reimbursements for hiring additional employees.
5. Internship Program in Top Companies
A new internship scheme will offer opportunities to 10 million young people over five years in 500 top companies. Interns will receive a monthly allowance of ₹5,000 and a one-time assistance of ₹6,000. Companies will cover some costs through their CSR funds, helping interns gain valuable work experience.
Conclusion
The Union Budget 2024-25 introduces several measures to benefit salaried individuals and job seekers, including higher deductions, new tax slabs, financial support for new employees, and extensive internship opportunities. These initiatives aim to boost economic growth and create more job opportunities.
