The Union Budget 2024-25 has introduced several key changes that will have a major impact on your financial planning. Whether you are a salaried employee, an investor, or a business owner, it is essential to understand the revised tax policies, new financial schemes, and sector-specific shifts that will affect your savings, investments, and expenditures.

Here's a breakdown of the six most significant changes and their implications on your personal financial plans.

• Revised tax slabs provide relief to salaried employees and pensioners, increasing disposable income.
• New employment schemes incentivise businesses, easing hiring costs and boosting workforce participation.
• NPS-Vatsalya encourages early financial planning for minors, offering long-term investment benefits.
• Changes to capital gains tax impact investors, with revised rates and exemption limits.

One of the most significant changes in the 2024-25 fiscal year comes in the form of revised income tax slabs. Under the new tax regime, the deduction for salaried workers has been raised from Rs. 50,000 to Rs. 75,000.

Pensioners under family pension schemes will also see their deduction rise from Rs. 15000 to Rs. 25,000. This will provide relief to approximately four crore individuals by putting more disposable income in their hands.

For those opting for the new tax regime, the slabs have been revised as follows:

• Up to Rs. 3 lakhs - Nil
• Between Rs. 3 lakhs to Rs. 7 lakhs - 5%
• Between Rs. 7 lakhs to Rs. 10 lakhs - 10%
• Between Rs. 10 lakhs to Rs. 12 lakhs - 15%
• Between Rs. 12 lakhs to Rs. 15 lakhs -20%
• Above Rs. 15 lakhs - 30%​

These changes will benefit taxpayers by simplifying the tax structure and eliminating the need to rely on deductions under the old regime. If you are looking for a safe investment option, you can consider fixed deposit. They offer guaranteed returns and a fixed interest rate throughout your investment tenure.

To boost employment, especially for first-time employees, the government has introduced three new schemes under the Employees' Provident Fund Organisation. These aim to encourage businesses to hire more employees and provide incentives for both employers and workers:

• Scheme A offers first-time employees earning up to Rs. 1 lakhs per month a direct deposit of Rs. 15,000 in their EPF account.
• Scheme B provides incentives to employees and their employers, where the government contributes towards EPF payments for the first four years of employment.
• Scheme C reimburses employers up to Rs. 3,000 per month for two years for each additional employee hired​.

These incentives could ease the hiring costs for employers while also encouraging workforce participation, benefiting both businesses and new workers.

The introduction of the NPS-Vatsalya scheme is another key development in financial planning for families. This scheme allows parents and guardians to open NPS accounts for minors. Upon reaching adulthood, the account can be seamlessly converted into a standard NPS account.

This initiative encourages early financial planning for children’s future, allowing families to take advantage of long-term investment benefits under the NPS framework. Parents looking for tax-saving avenues and financial security for their children can benefit significantly from this scheme.

Homebuyers, especially in urban areas, will feel the impact of the PMAY Urban 2.0 scheme. With an allocation of Rs. 10 lakh crore, this scheme aims to assist one crore families with affordable housing in the next five years​.

The affordable housing sector will also see significant boosts through interest subsidies for home loans. Currently, the PMAY scheme offers interest subsidies of 3-6.5% on loans of Rs. 6 - 12 lakhs. This provision will make homeownership more accessible to economically weaker sections, low-income groups, and middle-income earners and drive demand for urban housing.

The Budget 2024 has also simplified and rationalised capital gains tax. While tax rates on long-term and short-term capital gains have been clarified, these changes will impact various asset classes, including equity, bonds, and mutual funds.

STCG on specific financial assets has been revised to 20%, while LTCG has been revised to 12.5%. At the same time, the capital gains exemption limit has increased to Rs. 1.25 lakhs per year (for LTCG).

For investors, this means higher tax liabilities will arise depending on the asset class and holding period. Individuals who hold unlisted bonds, debt funds, or market-linked debentures should be particularly mindful of these changes.

The government has made provisions to support corporations and MSMEs through tax relaxations aimed at improving compliance and ease of doing business. Importantly, the Angel Tax, which was a significant burden on startups, has been abolished. This is expected to level the playing field for startups and encourage more venture capital inflows​.

Additionally, customs duties on several key sectors, including plastics, telecommunications, and marine products, have been rationalised to reduce import dependency and stimulate domestic production​. This presents an opportunity for MSMEs to grow and compete in the global market by lowering operational costs.

The changes introduced in the Union Budget 2024 present a mixed bag for investors, taxpayers, and businesses. While salaried employees and pensioners stand to gain from higher deductions, capital gains taxes have become more stringent for certain asset classes.

First-time employees and homebuyers will benefit from government incentives, while corporations and MSMEs will find ease in compliance and cost management. You can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.60% p.a.