Finance Minister Increases Tax Relief for Middle Class

Finance Minister Nirmala Sitharaman announced an increase in the standard deduction to Rs 75,000 and revised tax slabs under the new income tax regime. These changes aim to provide more disposable income to the salaried class and boost consumption. The changes are expected to benefit about four crore individuals.

Finance Minister Nirmala Sitharaman on Tuesday announced a series of tax reliefs for the middle class, hiking the standard deduction by 50% to Rs 75,000 and tweaking tax slabs under the new income tax regime.

Salaried employees could save up to Rs 17,500 annually in income tax following the changes, Sitharaman said in her Budget speech. The standard deduction for salaried employees is proposed to increase from Rs 50,000 to Rs 75,000 and for pensioners from Rs 15,000 to Rs 25,000.

The new tax slabs, effective from April 1, 2024, will provide relief to about four crore salaried individuals and pensioners. Income up to Rs 3 lakh will remain tax-exempt, with revised percentages for different income brackets.