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Finance Minister Nirmala Sitharaman in her seventh budget speech on July 23 revised the tax slabs under the new regime. She told the House that as a result of these changes, a salaried employee would be able to save up to ₹17,500 in income taxes.

Whilst the rate of taxation remains unchanged, the size of each of the slabs, excluding the initial zero to ₹3 lakh, remains unchanged. The erstwhile slab of ₹3 lakh to ₹6 lakh would now be expanded to ₹3 lakh to ₹7 lakh. However, the rate of taxation, that is 5%, remains unchanged. Similarly, the other slabs, that is, ₹6 to 9 lakhs, ₹9 to 12 lakhs, ₹12-15 lakhs and thereby beyond, would be revised to ₹7-10 lakhs, ₹10-12 lakhs, ₹12-15 lakhs and thereby beyond.  

Earlier, the Finance Minister further placed increasing the standard deduction for salaried employees from current ₹50,000 to ₹75,000 under the new tax regime.

Ms. Sitharaman further announced deduction in family pension for pensioners to be enhanced from ₹15,000 at present to ₹25,000. She held the measure would provide relief to about 4 crore salaried and pensioner individuals.

Concluding her speech, the Finance Minister told the house that because of the taxation measures announced on Monday, ₹37,000 crore would be foregone, which entails ₹29,000 in direct taxes and ₹8,000 in direct taxes. However, with a realisation of ₹30,000 crore expected, the total foregone amount would stand at ₹7,000 crore.

The government will develop a taxonomy for climate finance to help improve the availability of funds for adapting to climate change and reduce greenhouse gas emissions, Union Finance Minister Nirmala Sitharaman said during her Union Government budget presentation in the Parliament on July 23.

This will support achievement of the country’s climate commitments and green transition, she said while presenting the Budget for 2024-25 in the Lok Sabha.

She also said that the government will prepare a roadmap for moving hard-to-abate sectors, such as shipping, aviation, iron and steel and chemicals, from energy efficiency targets to emissions targets.

Finance Minister Nirmala Sitharaman said that the government would formulate an economic policy framework to delineate the strategy for sustaining high growth with next generation reforms. This is to cover all factors of productions, land, labour and capital. For this, collaboration with Centre and States is required, the Finance Minister said.