In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced significant changes to personal income tax rates and deductions. The new budget introduces revised tax slabs under the new tax regime, with a standard deduction increased from Rs 50,000 to Rs 75,000. This adjustment is expected to provide salaried employees with annual tax savings of up to Rs 17,500. The updated tax slabs are as follows: no tax up to Rs 3 lakh; 5% for income between Rs 3 lakh and Rs 7 lakh; 10% for income between Rs 7 lakh and Rs 10 lakh; 15% for income between Rs 10 lakh and Rs 12 lakh; 20% for income between Rs 12 lakh and Rs 15 lakh; and 30% for income above Rs 15 lakh.
Sitharaman, presenting her seventh consecutive Budget, highlighted that the focus of the 2024-25 Budget is on key areas including poverty alleviation, women’s empowerment, youth employment, and support for farmers. She announced a substantial Rs 2 lakh crore package, which includes five new schemes aimed at enhancing employment opportunities, skill development, and other critical areas. Additionally, the Budget outlines nine priorities such as productivity, job creation, social justice, urban development, energy security, infrastructure, and reforms.
The Finance Minister also revealed plans to allocate Rs 2 lakh crore for job creation over the next five years and introduced three new employment-linked schemes tied to the Employees’ Provident Fund Organisation (EPFO). These initiatives are designed to bolster employment, support skill development, and improve market access for women’s self-help group enterprises.
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