During the Budget Session of Parliament on Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25. She set a new record by becoming the first finance minister to deliver seven consecutive budget speeches, surpassing former Prime Minister Morarji Desai’s record of six from 1959 to 1964.
Key Initiatives in the Budget 2024-25
- Standard Deduction Increase
- The standard deduction for salaried employees has been increased from ₹50,000 to ₹75,000 under the new income tax regime.
- New Income Tax Slabs
- The revised income tax slabs are as follows:
- 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%
- This change could save salaried employees up to ₹17,500 in income tax.
- The revised income tax slabs are as follows:
- Family Pension Deduction Increase
- The deduction amount for family pensions has been raised from ₹15,000 to ₹25,000 under the new tax regime, benefiting around 4 crore salaried individuals and pensioners.
- Wage Support for New Employees
- The government will provide a one-month wage to new entrants in formal sectors, with the amount being transferred directly to the employees’ provident fund. This scheme is expected to benefit 2.1 crore youth, with eligibility for salaries up to ₹1 lakh per month.
- Internship Scheme in Top Companies
- An internship scheme will be launched for youth in 500 top companies, covering 10 million young people over five years. Interns will receive a monthly allowance of ₹5,000 and a one-time assistance of ₹6,000. Companies will bear the training cost and 10% of the internship cost from their CSR funds.
These measures are part of a broader strategy to boost employment, skilling, and economic growth, with a particular focus on supporting the middle class and MSMEs.
