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Union Budget 2024: Top Takeaways for Salaried Employees
Posted on Friday, September 20th, 2024 | By IndusInd Bank
During the Monsoon Session of Parliament, the Finance Minister, Nirmala Sitharaman, presented the Union Budget for 2024–25. She became the first finance minister to deliver seven consecutive budget speeches, surpassing former Prime Minister Morarji Desai’s record of six consecutive budgets from 1959 to 1964.
In her seventh budget, Sitharaman focused on boosting economic growth and creating opportunities. Key priorities include employment and skill development, improving productivity and resilience in agriculture, and enhancing services. Below, we outline the Union Budget 2024-25 initiatives aimed at salaried individuals and job seekers.
Top Takeaways for Salaried Individuals
1. Increase in the Standard Deduction
In the new income tax regime, the standard deduction for salaried employees is increased to ₹75,000 from ₹50,000. The standard deduction is a fixed amount subtracted from an employee’s annual salary before calculating the income tax. Notably, there has been no update on the standard deduction under the old tax system.
2. Change in Income Tax Slabs
Income Tax Slabs under the new regime for FY 2024-25 are as below:
| Income slabs | Tax Rate |
| Up to ₹3 lakh | Nil |
| ₹3 lakh 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% |
3. Increase in Tax Deduction on Family Pension
Sitharaman also announced an increase in the family pension deduction for better financial stability of salaried individuals and pensioners. The deduction amount will rise to ₹25,000 from ₹15,000 under the new tax regime. This increase will benefit approximately 4 crore salaried individuals and pensioners.
4. Increase in Employer’s Contribution to NPS
Effective AY 2025-26, deduction for employer’s contribution to NPS has been enhanced from the existing threshold of 10% to 14% specifically for those opting for the new tax regime.
5. A Month’s Salary for All New Employees in the Formal Sector
The finance minister announced that all new employees in the formal sector will receive a one-month salary from the government. This will be done through a direct benefit transfer of up to ₹15,000, given in three instalments. The government will also contribute to the employees’ provident fund directly. The maximum monthly salary eligible for this benefit is ₹1 lakh.
6. Internship Opportunities at Top 500 Companies
The new youth internship program, announced by the finance minister, promises internship at top 500 companies. Trainees will receive a one-time payment of ₹6,000 and a monthly internship allowance of ₹5,000. This aims to provide exposure to the interns to various professions, real-world business environments, and job opportunities.
Conclusion
The Union Budget 2024-25, presented by the Finance Minister, Nirmala Sitharaman, brings several promising initiatives aimed at improving the financial well-being of salaried individuals and job seekers. For those looking to further secure their financial future, considering investment options like IndusInd Fixed Deposits (FDs) could be highly beneficial.
IndusInd Bank FDs offer competitive interest rates, flexible tenure options, and a safe investment avenue, making them an excellent choice for salaried individuals aiming to grow their savings. By taking advantage of the tax deductions and other benefits outlined in the budget, along with smart investment strategies like fixed deposit, individuals can achieve greater financial stability and security.
Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
