Union Budget 2024: Main 5 takeaways for Working Professionals

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 on Tuesday during the Monsoon Session of Parliament. This marked her seventh consecutive budget presentation, surpassing former Prime Minister Morarji Desai’s record of six consecutive budgets as finance minister between 1959 and 1964. 

In her historic seventh budget, Sitharaman emphasized key priorities aimed at boosting economic growth and creating opportunities. These priorities included enhancing productivity and resilience in agriculture, promoting employment and skill development, and supporting the services sector. 

“India’s economic growth continues to be a shining exception in a world gripped by policy uncertainties and will remain so in the years ahead,” Sitharaman said. “In this budget, we particularly focus on employment, skilling, MSMEs, and the middle class.” 

Key Announcements 

Increase in Standard Deduction: 

Sitharaman announced an increase in the standard deduction for salaried employees from ₹50,000 to ₹75,000 under the new income tax regime—a 50% increase. The standard deduction is a flat amount subtracted from an employee’s total salary before calculating the applicable income tax rate. Notably, no changes were made to the standard deduction under the old tax regime. 

New Income Tax Slabs: 

The finance minister also introduced revised income tax slabs under the new tax regime for the current fiscal year. The new slabs are: 

• Up to ₹3 lakh: 0% 

• ₹3 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% 

These changes will allow salaried employees in the new tax regime to save up to ₹17,500 in income tax. 

Increase in Family Pension Deduction: 

Sitharaman proposed increasing the family pension deduction amount from ₹15,000 to ₹25,000 under the new tax regime to enhance financial stability for salaried individuals and pensioners. This move is expected to benefit about 4 crore individuals. 

One-Month Wage for New Employees: 

The government will provide one month’s wage to all newly employed individuals in formal sectors. This Direct Benefit Transfer will be up to ₹15,000, paid in three installments to first-time employees registered with the EPFO. The eligibility limit for this scheme is a salary of ₹1 lakh per month, benefiting 210 lakh youth. 

“…One month’s wage to all persons newly entering the workplace in all formal sectors. Direct Benefit Transfer of one month’s salary in three installments to first-time employees as registered in the EPFO will be up to ₹15,000. The eligibility limit will be a salary of ₹1 lakh per month. The scheme will benefit 210 lakh youth,” Sitharaman stated while presenting the Budget. 

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