What was the new standard deduction set for salaried person under the new income tax regime, in the Union Budget 2024-25?

Key Points

• The new standard deduction for salaried persons under the Union Budget 2024-25 has been set at ₹75,000.
• This adjustment is aimed at providing more financial relief to salaried individuals by reducing their taxable income.
• The increase in the standard deduction is expected to enhance the disposable income of salaried employees.
• This change is part of the government's efforts to simplify the tax regime and make it more beneficial for the middle-class segment.

Additional Information

• Standard Deduction
  • Standard deduction is a fixed amount that reduces the income on which you are taxed, rather than going through the hassle of itemizing deductions.
  • It simplifies the process of filing tax returns and ensures that taxpayers receive a basic tax-free income.
• Union Budget
  • The Union Budget is the annual financial statement presented by the Government of India, detailing the revenue and expenditure for the next fiscal year.
  • It includes various policies, schemes, and financial plans that the government intends to implement during the year.
• Income Tax Regime
  • The income tax regime refers to the set of rules and regulations governing the taxation of income for individuals and businesses.
  • It includes various deductions, exemptions, and tax rates applicable to different categories of taxpayers.
• Taxable Income
  • Taxable income is the portion of your income that is subject to income tax after accounting for all deductions and exemptions.
  • It is the amount on which the government calculates the income tax you owe.