In a major announcement during the Union Budget 2024-25, Finance Minister Nirmala Sitharaman introduced substantial tax relief measures. The new tax regime will offer an income tax saving of up to ₹17,500 for salaried employees. Additionally, around four crore salaried individuals and pensioners will benefit from these tax relief measures, aimed at providing financial ease to a significant portion of the workforce.
Tax Relief: Revised Tax Slabs and Standard Deduction Increase
One of the key highlights of the budget was the revision of tax slabs in the new tax regime. The Finance Minister also announced an increase in the standard deduction for salaried employees, raising it from ₹50,000 to ₹75,000. This move is expected to further reduce the tax burden on salaried individuals and provide them with additional disposable income.
Focus on Middle-Class Welfare
These tax relief measures reflect the government’s commitment to the welfare of the middle class. By increasing the standard deduction and revising the tax slabs, the government aims to enhance the financial well-being of salaried employees and pensioners, ensuring they have more savings and better financial stability.
Impact on the Economy
The tax relief measures announced in the Union Budget 2024-25 are expected to stimulate economic growth by increasing the purchasing power of salaried employees and pensioners. With more disposable income, consumer spending is likely to rise, positively impacting various sectors of the economy and contributing to overall economic development.
