For the salaried persons, there has been a demand for the increase in the benefits to the individuals from a very long time. After the implementation of the new tax regime as the default regime, the exemptions under section 10 and deductions under chapter VIA are not available to the Individuals.
To meet the demands of the salaried individuals, the Finance Minister has proposed to increase the standard deduction from Rs. 50,000/- to Rs. 75,000/- for those taxpayers who opt to the new tax regime in the first budget of Modi 3.0 Government. The step has been taken to incentivize the taxpayers to shift from the old tax regime to the new tax regime. Hence, giving a boost to the salaried class of India.
The said amendment shall be effective with effect from AY 2025-26.
