Budget offers income tax sops for 4 crore salaried individuals

Finance Minister Nirmala Sitharaman offered a bonanza for four crore salaried individuals and pensioners with the Budget announcements for 2024-25.

On Personal Income Tax Rates, FM Sitharaman announced two announcements to make for those opting for the new tax regime.

First, the standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000.

Similarly, the deduction on family pension for pensioners is proposed to be enhanced from Rs  Rs 15,000 to Rs 25,000/-. This will provide relief to about four crore salaried individuals and pensioners, the Finance Minister said.

In the new tax regime, the tax rate structure is to be revised as follows;

* 0-3 lakh rupee - Zero

* 3-7 lakh - 5 per cent

* 7-10 lakh - 10 per cent

* 10-12 lakh - 15 per cent

* 12-15 lakh - 20 per cent

15 lakh and above - 30 per cent

“Salaried employees in the new tax regime will save up to Rs 17,500 in income tax,” the Finance Minister said.

LIVE BUDGET UPDATE | Budget 2024 LIVE Updates: Finance Minister Nirmala Sitharaman Proposes New tax Rate Structure

She said that as per data available till now for the last fiscal, more than two-thirds have availed the new personal income tax regime.