Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 during the Monsoon Session of Parliament on Tuesday. This was her seventh consecutive budget, setting a new record. She focused on economic growth, agriculture, employment, and services.
Key Highlights for Salaried Persons and Job Seekers
1. Increase in Standard Deduction:
– The standard deduction for salaried employees under the new income tax regime increased from ₹50,000 to ₹75,000.
– Standard deduction is a flat amount subtracted from total salary before calculating income tax.
– There is no change in the standard deduction for the old tax regime.
2. New Income Tax Slabs
– The income tax slabs for the new tax regime have been relaxed:
– 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%
– These changes can save a salaried employee up to ₹17,500 in income tax.
3. Increase in Family Pension Deduction
– The deduction amount for family pension under the new tax regime increased from ₹15,000 to ₹25,000.
– This move aims to provide financial relief to about 4 crore salaried individuals and pensioners.
4. One Month Wage for New Employees
– The government will provide a one-month wage to all new employees in formal sectors.
– This will be transferred directly as their provident fund contribution in three installments.
– The benefit applies to new employees earning up to ₹1 lakh per month and will cover 210 lakh youth.
– Employers will receive incentives based on their EPFO contribution for the first four years of employment and reimbursement of up to ₹3,000 per month for two years for each additional employee.
5. Internship Program in Top 500 Companies
– A new internship scheme will be launched for youth in the top 500 companies, covering 10 million young people over five years.
– Interns will receive an allowance of ₹5,000 per month and a one-time assistance of ₹6,000.
– Companies will cover training costs and 10% of the internship cost from their CSR funds.
– The internship will provide 12 months of real-life business exposure and employment opportunities.
In her budget speech, Nirmala Sitharaman emphasized that India’s economic growth remains strong despite global uncertainties. The budget focuses on employment, skilling, MSMEs, and the middle class to ensure sustained growth and opportunities.
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