Budget 2024: Big Boost To Taxpayers, Standard Deduction Increased From Rs 50,000 To Rs 75,000

New Delhi: In a massive boost for lakhs of taxpayers, FM Nirmala Sitharaman on Tuesday said that for those opting for new tax regime, FM has announced to increase the standard deduction from Rs 50,000 to Rs 75,000.

The government declared on Tuesday that the two percent equalisation charge would be eliminated. For employers' contributions to the National Pension System (NPS), the government increased the deduction ceiling from 10% to 14%.

The Finance Minister has also suggested raising the tax deduction for family pension for pensioners from Rs. 15,000 to Rs. 25,000. Sitharaman further mentioned that the measures outlined in the FY25 Budget will allow salaried workers to save up to Rs 17,500 in taxes annually under the new tax regime.