Budget 2024: Govt Makes New Tax Regime More Attractive

Union Finance and Corporate Affairs Minister Nirmala Sitharaman announced several new tax relief benefits for salaried individuals and pensioners opting for the new tax regime while presenting the Union Budget 2024-25 in Parliament on Tuesday.

Finance Minister proposed to increase the standard deduction for salaried employees from Rs 50,000 to Rs 75,000. Also, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000 under the new tax regime. This will provide relief to about four crore salaried individuals and pensioners.

Sitharaman proposed to revise the tax rate structure in the new tax regime a result of which a salaried employee in the new tax regime stands to save up to Rs 17,500 annually in income tax.