Government of India Enhances Tax Regime to Boost Participation

Several attractive benefits to provide tax relief to salaried individuals and pensioners opting for the new tax regime were announced by the Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman while presenting the Union Budget 2024-25 in the Parliament today.

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

Smt. Sitharaman proposed to revise the tax rate structure in the new tax regime, as follows:

As a result of these changes, a salaried employee in the new tax regime stands to save up to ₹ 17,500 annually in income tax.