Income Tax Slabs 2024-25 Budget 2024– Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament today (July 23). She has become the first Finance Minister to present the budget seven times in a row.
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Sitharaman announced increased standard deductions and revised tax rates for salaried individuals under the new tax regime. Apart from this, customs duty was announced on gold, silver, mobile phones and other items. Now its effect will be seen in the future
The Centre’s FY25 capital expenditure is estimated at Rs 11.1 lakh crore — unchanged from the interim budget, and infrastructure spending is estimated at 3.4% of GDP.
| Capex Spend (₹ lakh crore) [estimated] | Infrastructure Spend (% of GDP) |
|---|---|
| 11.1 | 3.4 |
Income Tax Slabs 2024-25 Budget 2024
| Income Slab | Tax Rate (%) |
|---|---|
| 0 – 3 Lakh | Nil |
| From Rs 3 lakh to ₹ 7 lakh | 5% |
| 7 – 10 lakh | 10% |
| 10 – 12 lakh | 15% |
| 12 – 15 lakh | 20% |
| Above 15 lakh | 30% |
The latest Union Budget introduced significant changes to India’s income tax landscape. Key modifications include the revision of income tax slabs, an increased standard deduction, and a revamped capital gains tax regime. To encourage taxpayers to adopt the new tax regime, the government has maintained the old tax regime without any alterations.
A notable highlight is the standard deduction enhancement from Rs. 50,000 to Rs. 75,000, providing additional tax relief to taxpayers. Furthermore, the initial tax slab with a 5% tax rate now applies to incomes up to Rs. 7 lakh, offering benefits to lower-income earners.
Highlights from Budget
Employment and Skill Development
- Target: Five schemes to focus on 4.1 crore youth in 5 years with a Central outlay of ₹2 lakh crore.
- Key initiatives: Comprehensive internship program for one crore youth top companies over five years,
- Employment-linked incentives,
- Women-specific skilling,
MSME and Manufacturing
- Focus: Support for MSMEs and the manufacturing sector
- Key initiatives: Credit guarantee scheme, term loans, technology support,
- Expansion of SIDBI 24 new branches
Financial Inclusion
- Key initiatives: Increased Mudra loan limit from ₹10 lakh to ₹20 lakh for previous borrowers,
- Financial support for higher domestic institutions education loans,
- Improved insolvency and bankruptcy process
Agriculture and Rural Development
- Allocation: ₹2.66 lakh crore for rural development
- Key initiatives: Agricultural research focuses on productivity and climate resilience.
- Introduce 1 crore farmers to natural farming over 2 years
Infrastructure and Regional Development
- Key initiatives: Public-private partnership for rental housing, financial support of Rs. 15,000 crore for Andhra Pradesh,
- New infrastructure projects in Bihar, i.e., New airports, medical facilities, and sports infrastructure.
Economic Outlook
- Target: Inflation at 4%
- Focus: Job creation, boosting consumption
- Expected benefits: Positive impact on consumer goods, real estate, and auto sectors
Nine Priority Areas
- Agriculture
- Employment
- Inclusive Development
- Manufacturing and Services
- Urban Development
- Energy
- Infrastructure
- Innovation and R&D
- Next Generation Reforms
Women-Led Development
- Allocation: Over ₹3 lakh crore
Social Welfare
- Extension of PMGKAY[ (Pradhan Mantri Garib Kalyan Anna Yojana)]: Benefits over 80 crore people
Digital and Technology
- Focus: Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance
Income Tax Budget 2024
Income Tax Budget 2024: The Finance Minister is presenting the Budget 2024 today. This is her seventh consecutive budget, before this, an interim budget was presented due to the 2024 Lok Sabha elections, in which no significant announcements were made.
The salaried class in India is eagerly waiting for the PM Modi-led government to announce relief by way of tax cuts or increases in income tax slabs. Expectations range from increasing the standard deduction limit to adjusting the income tax slabs to lighten the financial burden of taxpayers.
Enhanced NPS Contributions for Improved Social Security
The government has announced plans to bolster social security benefits by increasing the allowable deduction for employer contributions to the National Pension System (NPS). Employers can now contribute up to 14% of an employee’s salary towards NPS, an increase from the previous limit of 10%.
To further incentivize NPS participation, employees in the private and public sectors who opt for the new income tax regime can also claim a deduction of up to 14% of their salary for NPS contributions. This move aims to encourage long-term savings and retirement planning among Indian workers.
