The Union Finance Minister presented the Main Budget in the Parliament in July 2024 during the Monsoon session. The FM announced that the Budget is focused on Poor, women, youth, and farmers. Highlights of the budget included Major announcements include new schemes for Agriculture, job linked schemes, and infrastructure projects amongst others. Key changes included changes to the Personal Taxation also which is presented in this update.

The following are the changes to the Personal Taxation effective from 01 April 2024 – with retrospective effect.

  1. Income Tax Rate change; This impacts tax payers who have chosen the New Regime u/s 115BAC of the Income Tax Act.
  2. Standard deduction change: The Standard deduction is raised from Rs 50000 per annum to Rs 75000 per annum. {Standard Deduction is a flat deduction available for Income from Salary. It is available on the cumulative salary earned in a year}.
  3. Changes to Standard deduction for Pensioners -Raised from Rs 15000/- per annum to Rs 25000/- per annum.
  4. Contribution to National Pension Scheme by Employers – Raised from the current 10% to 14% for all other sector of employees incl Government sector.{ The Employer contribution under the NPS has been increased from 10% to 14% (akin to the Government sector) and is applicable to all Sectors of Employers. This new limit applies to both private and public-sector employees. Available for employer contributions to the employee’s NPS Account}.

The changes above are subject to passing of the Finance Bill (2) of 2024 in both houses of the Parliament for it to be effective. We await the passage.

The changes will be delivered for Release 9.2 and the solution will be posted at the earliest as a PRP. For more information on solution posting details, please keep watching My Oracle Support  Document ID 3037067.1