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It is pertinent to note that the standard deduction is available under both old and new income tax regimes read more
 "Standard Deduction goes up from Rs 50,000 to Rs 75,000 under new tax regime")
Nirmala Sitharaman introduces benefits for professionals in new tax regime. PTI
In a major relief for working professionals, Finance Minister Nirmala Sithraman proposed that the Standard deduction for professionals enrolled in the new tax regime will go up from Rs 50, 000 to Rs 75, 000. The term refers to the flat deduction of Rs 50,000 that salaried individuals can claim against their taxable salary income.
“First, the standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000. Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000/- to Rs 25,000/-,” the finance minister mentioned that the scheme would provide relief to four crore salaried individuals and pensioners.
There is no requirement for any proof of actual expenses incurred. It is pertinent to note that the standard deduction is available under both old and new income tax regimes.
The reason why it is beneficial is because Standard deduction is meant to reduce the taxable income of taxpayers and cover some expenses incurred during employment. The standard deduction was last revised in 2019. Before the budget was tabled, many experts predicted that the flat deduction would be revised given the rise in living expenses.
On Tuesday, the finance minister tabled the 2024 Union Budget in the parliament. What makes the sacrosanct document so significant is the fact that this is the first budget of the Modi 3.0 government that came to power in the 2024 Lok Sabha General Elections.
It is pertinent to note that this will be the seventh budget presented by Sitharaman, the most by any Indian finance minister in the country’s history.
Income vs Tax
While dwelling more on personal income tax, Sitharaman introduced the following tax rate structure. They are as follows:
| 3-7 lakh rupees | 5 per cent |
| 7-10 lakh rupees | 10 per cent |
| 10-12 lakh rupees | 15 per cent |
| 12-15 lakh rupees | 20 per cent |
| Above 15 lakh rupees | 30 per cent |
The finance minister insisted that through these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500 in their income tax.
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