Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 during the Monsoon Session of Parliament, marking her seventh consecutive budget speech. This achievement surpasses former Prime Minister Morarji Desai’s record of six consecutive budgets as Finance Minister.
In this landmark budget, Sitharaman emphasised India’s robust economic growth amidst global uncertainties. She stated, ‘India’s economic growth continues to be the shining exception and will remain so in the years ahead.’ The budget focuses on crucial sectors such as agriculture, employment, skilling, and services, aiming to bolster the economy and provide new opportunities.
For salaried employees, a significant change is the increase in the standard deduction under the new income tax regime from ₹50,000 to ₹75,000. This adjustment is expected to save salaried individuals up to ₹17,500 in taxes. The new income tax slabs have also been revised, offering more relaxed rates for different income brackets, from 0% for incomes up to ₹3 lakh to 30% for those above ₹15 lakh.
In addition, the Union Budget 2024-25 proposes an increase in the family pension deduction amount from ₹15,000 to ₹25,000, benefiting around 4 crore salaried individuals and pensioners. This move is aimed at providing greater financial stability to pensioners.
One of the notable measures introduced is a direct benefit transfer for newly employed individuals in formal sectors. The government will provide a one-month wage, capped at ₹15,000, to first-time employees registered with the Employees’ Provident Fund Organisation (EPFO). This scheme, benefiting 2.1 crore youth, includes reimbursement incentives for employers contributing to the EPFO.
Furthermore, the Union Budget 2024-25 includes a comprehensive internship scheme targeting 1 crore youth over five years. This initiative will offer internship opportunities in 500 top companies, with interns receiving a monthly allowance of ₹5,000 and a one-time assistance of ₹6,000. Companies will cover the training cost and 10% of the internship cost from their Corporate Social Responsibility (CSR) funds.
These announcements highlight the government’s commitment to economic growth, employment, and skill development, setting a positive trajectory for India’s future.
Finance Minister Nirmala Sitharaman’s seventh consecutive budget speech has set a new record, focusing on enhancing economic growth amidst global uncertainties. Key measures include increased standard deductions, revised income tax slabs, and a higher family pension deduction. Noteworthy initiatives involve direct benefit transfers for new employees and a comprehensive internship program.
As you navigate these changes, Vakilsearch offers seamless online CA services to ensure compliance and optimize your financial strategy. From income tax filing and financial planning to company registration and compliance, our experts are here to support you every step of the way. Make the most of the new budget provisions with our professional guidance and hassle-free services.
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