income tax

Union Budget 2024-25: Key Tax Benefits for Salaried Individuals and Pensioners

Introduction

The Ministry of Finance has introduced crucial amendments designed to enhance tax benefits for salaried individuals and pensioners under the new tax regime. These changes were outlined by Union Finance Minister Smt. Nirmala Sitharaman during the Union Budget 2024-25 presentation.

Key Tax Amendments

Several important changes aimed at providing tax relief have been proposed:

  • Standard Deduction Increase: The standard deduction for salaried employees will rise from ₹50,000 to ₹75,000.
  • Family Pension Deduction: The deduction on family pension for pensioners is set to increase from ₹15,000 to ₹25,000.

These adjustments are expected to significantly benefit approximately four crore salaried individuals and pensioners, offering potential annual savings of up to ₹17,500 in income tax.

Revised Tax Rate Structure

Additionally, Smt. Sitharaman has suggested a revision of the tax rate structure under the new tax regime. While specific rates were not detailed in this announcement, the restructuring aims to further enhance tax savings for those opting for this regime.

Conclusion

These measures announced in the Union Budget 2024-25 represent a substantial step towards providing financial relief, particularly benefiting salaried employees and pensioners. The proposed increases in deductions are poised to contribute to considerable annual tax savings, fostering greater financial stability for millions.