Fin Min Announces Standard Deduction For Salaried Employees Hiked From Rs.50,000 To Rs.75,000: Budget 2024

Fin Min Announces Standard Deduction For Salaried Employees Hiked From Rs.50,000 To Rs.75,000: Budget 2024

The changes pertain to Personal Income Tax

Union Finance Minister, Nirmala Sitharaman has announced that the standard deduction for salaried employees and the deduction on family pension has been increased.

While presenting the budget, the minister stated, "For Personal Income Tax rates, I have two announcements 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 enhanced from Rs.15,000 to Rs.25,000. This will provide relief to over four crore salaried individuals and pensioners.”

She added, “The increase in the standard deduction is likely to provide a modest boost to personal spending. By reducing the tax burden on salaried individuals, disposable income is effectively increased, which can stimulate consumer spending and, in turn, contribute to the nation’s economic growth."