The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, introduces several significant changes designed to benefit salaried employees across India. These adjustments aim to simplify the tax structure, increase take-home pay, and promote higher savings.
Tax Slab Adjustments
One of the major highlights of this budget is the revision of tax slabs. The 10% tax rate now applies to income from Rs 7 lakh to Rs 10 lakh, an increase from the previous range of Rs 6 lakh to Rs 9 lakh. Similarly, the 15% tax rate now covers income from Rs 10 lakh to Rs 12 lakh, whereas it previously applied to income from Rs 9 lakh to Rs 12 lakh [❞] [❞]. These changes are expected to provide significant tax relief to the middle class.
Standard Deduction Increase
In a move to provide more financial relief, the standard deduction for salaried employees has been increased from Rs 50,000 to Rs 75,000. This increase will reduce the taxable income for millions of salaried employees, thereby increasing their disposable income [❞] [❞].
Enhanced NPS Contributions
The budget also addresses the disparity between government and private sector employees concerning National Pension System (NPS) contributions. The deduction limit for employers’ contributions to NPS has been raised from 10% to 14% of the salary. This change aligns the benefits available to private sector employees with those in the government sector, encouraging higher retirement savings [❞] [❞].
Increased Family Pension Deduction
The deduction for family pensions has been increased from Rs 15,000 to Rs 25,000. This change provides additional financial support to pensioners, benefitting around 4 crore individuals [❞].
Basic Exemption Limit
The budget also proposes an increase in the basic exemption limit by Rs 50,000, which will further reduce the tax liability for all taxpayers. This adjustment is expected to increase the net take-home pay for salaried employees, contributing to better financial stability and economic growth [❞].
Conclusion
The Union Budget 2024 reflects the government’s commitment to supporting the salaried class through various tax benefits and increased deductions. By streamlining the tax structure and promoting higher savings, these changes aim to provide substantial financial relief and foster economic growth.
For more detailed information, you can visit the Trak.in article and the Business Today article.
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