Hyundai Motor India Ltd (HMIL), the country’s second-largest carmaker, reported a 19% drop in net profit for Q3FY25, falling to ₹1,161 crore from ₹1,425 crore in the same period last year. The decline was mainly due to lower domestic demand and geopolitical challenges affecting exports. Revenue also saw a slight dip of 1% to ₹16,648 crore from ₹16,875 crore in Q3FY24.

Sales Performance and Market Trends

During the quarter, Hyundai sold 1,86,408 passenger vehicles, a 2% drop from 1,90,979 units in the previous year. Domestic sales stood at 1,46,022 units, with strong demand in the SUV segment. Meanwhile, exports declined by 8% to 40,386 units due to disruptions caused by the Red Sea crisis and geopolitical tensions in Latin America. However, the company expanded into new markets like Africa to offset the impact.

Growth in CNG and Rural Markets

Hyundai achieved its highest-ever CNG vehicle penetration, reaching 15%, up from 12% in Q3FY24. The company also saw an increase in rural market penetration, rising to 21.2% from 19.7% a year ago.

Future Plans and EV Expansion

Hyundai remains optimistic about future growth and expects demand to improve in the fourth quarter. The company is focusing on electric vehicles (EVs) and aims to capture a 20% market share in the EV segment in the coming years. The newly launched Creta Electric is expected to play a key role in this strategy. Hyundai is also developing an EV ecosystem, investing in localisation, charging infrastructure, and alternative technologies such as hydrogen, hybrids, and flexible fuel.

Despite ongoing global challenges, Hyundai remains confident in its strong fundamentals. The company believes Creta Electric will be a game-changer in India’s EV market and plans to launch 3 more EV models soon.

About Hyundai Motor India Limited

Hyundai Motor India Limited, established in May 1996, is a subsidiary of the Hyundai Motor Group, the world’s third-largest manufacturer of passenger vehicles by sales.

Hyundai Motor India share price is trading at ₹1,624.55, up by ₹0.15 (0.0092%) today. It has a market cap of ₹1.32 lakh crore, with a 52-week high of ₹1,970.00 and a low of ₹1,610.65.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Hindustan Zinc, a subsidiary of the Vedanta Group, reported a 32% increase in net profit for the third quarter of FY25, driven by lower costs and higher metal prices.

Strong Financial Performance

The company’s net profit rose to ₹2,678 crore, compared to ₹2,028 crore in the same quarter last year. Revenue from operations grew 18% year-on-year to ₹8,315 crore. Zinc LME prices saw a 22% increase, while the cost of zinc production declined 5% in dollar terms.

Production and Expansion Plans

Total refined zinc and lead production remained flat at 259 KT. Hindustan Zinc expects to spend ₹1,500-1,600 crore in capital expenditure for FY25. The company’s net debt is projected to decline from ₹5,700 crore in September 2024 to ₹2,300 crore by March 2025. Looking ahead, Hindustan Zinc is exploring a capacity expansion to 2 million tonnes, which requires board approval and an estimated investment of $2-2.5 billion over the next 3-5 years.

Business Demerger and Critical Minerals

The company is awaiting government approval for its proposed business demerger, but no timeline has been set. In the meantime, Hindustan Zinc is focusing on its critical minerals division. A recently won tungsten block in Tamil Nadu was scrapped due to local protests.

Positive Future Outlook

With strong fundamentals, Hindustan Zinc expects to deliver solid results in the fourth quarter and aims to achieve over 1.2 million tonnes of production next year. The company is also set to commission its roaster plant in Q4FY25.

About Hindustan Zinc

Founded in 1966, Hindustan Zinc is the world’s second-largest integrated zinc producer and the 3rd-largest silver producer globally, with an annual capacity of 800 metric tonnes. The company holds approximately 75% market share in India’s expanding zinc industry. Headquartered in Zinc City, Udaipur, Hindustan Zinc operates zinc-lead mines and smelting facilities across Rajasthan.

As of 10:54 AM on January 29, Hindustan Zinc share price is trading at ₹430.50, down 0.62%. The stock opened at ₹440.00, reaching a high of ₹444.95 and a low of ₹430.00. The company’s market capitalisation stands at ₹1.82 lakh crore, with a P/E ratio of 20.84 and a dividend yield of 8.13%. Over the past 52 weeks, the stock has touched a high of ₹807.70 and a low of ₹284.60.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

CG Power and Industrial Solutions reported a 68% decline in its consolidated net profit for the third quarter of FY25 (October–December 2024), mainly due to the absence of earnings from discontinued operations.

Profit and Revenue

• Net Profit: ₹237.85 crore, down from ₹747.67 crore in Q3FY24.
• Impact of Discontinued Operations: Last year’s profit included ₹551.07 crore from discontinued operations.
• Profit from Continuing Operations: Increased by 21% YoY to ₹237.85 crore, compared to ₹196.60 crore last year.
• Total Income: Grew to ₹2,549.28 crore, up from ₹2,006.79 crore in Q3FY24.

Expansion Plans

• New Transformer Plant: CG Power’s board approved a 45,000 MVA transformer manufacturing unit in western India with an estimated investment of ₹712 crore.
• Funding: The project will be financed through internal accruals, equity, debt, or a combination of these.
• Expected Completion: FY28.

About CG Power & Industrial Solutions Ltd

CG Power & Industrial Solutions is a global company that delivers comprehensive solutions for utilities, industries, and consumers to efficiently manage and utilise sustainable electrical energy. The company operates through two key business segments, Power Systems and Industrial Systems, offering a range of products, services, and solutions.

CG Power and Industrial Solutions share price is trading at ₹613.35, up 6.68% today. The stock opened at ₹574.95, reached a high of ₹620.25, and a low of ₹574.95. It has a market cap of ₹93.97K crore, a P/E ratio of 64.93, and a dividend yield of 0.21%. The 52-week high stands at ₹874.70, while the 52-week low is ₹420.25.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

SBI Cards and Payment Services Ltd reported a 30% year-on-year (YoY) decline in its net profit for the third quarter of FY25 (October-December 2024). The company’s profit fell to ₹383.2 crore, compared to ₹549.1 crore in the same period last year.

Meanwhile, revenue from operations saw a 1% YoY growth, reaching ₹4,767 crore, up from ₹4,742 crore in Q3FY24.

Key Financial Metrics

Higher Write-Offs Impact Profit

SBI Cards’ net profit was affected by increased write-offs, which significantly reduced earnings. The company’s total operating cost dropped 13% YoY to ₹2,107 crore, down from ₹2,426 crore in the previous year.

Rising NPAs Indicate Asset Quality Pressure

• Gross Non-Performing Assets (NPA) increased to 3.24%, up from 2.64% in Q3FY24.
• Net NPA also rose to 1.18%, compared to 0.96% last year.

Sharp Increase in Loan Impairments

• Impairment on financial instruments surged 49% YoY to ₹1,313 crore from ₹883 crore last year.
• Gross write-offs saw a massive 89% jump, reflecting rising delinquencies in the credit card segment.

NIM Contraction & Industry Trends

SBI Cards’ net interest margin (NIM) fell 31 basis points YoY to 10.6%, signalling pressure on profitability. The company, along with other Indian lenders, is witnessing higher delinquencies in credit cards and personal loans, leading to asset quality concerns.

Despite a rise in revenue, higher bad loans and write-offs continue to impact SBI Cards’ profitability as the company navigates a challenging lending environment.

About SBI Cards and Payment Services Limited

SBI Cards and Payment Services Limited is a key non-banking financial company (NBFC) registered with the RBI that does not accept deposits. It specialises in issuing credit cards to consumers across India. Headquartered in Gurgaon, Haryana, the company operates as a subsidiary of the State Bank of India, the country’s largest commercial bank.

As of January 29, 2025, at 9:25 AM IST, SBI Cards share price is trading at ₹743.55, down 2.05% (-₹15.55) for the day. The stock opened at ₹727.00, reached a high of ₹755.20, and a low of ₹721.00. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Finance Minister Nirmala Sitharaman will present the Union Budget 2025. This will be her 8th consecutive Union Budget presentation, making her the first Finance Minister to achieve this feat. The previous record was held by Morarji Desai, who presented 6 consecutive budgets.

Budget 2025 Date and Time

Nirmala Sitharaman will present the Union Budget 2025 in Parliament at 11:00 AM on Saturday, February 1, 2025.

Stock Markets (NSE and BSE) to Remain Open on Union Budget Day

Even though the Budget is being presented on a Saturday, both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain open for trading. The markets will operate during regular hours, from 9:15 AM to 3:30 PM.

This is similar to previous years, such as February 1, 2020, and February 28, 2015, when budgets were also presented on Saturdays with markets open for trading.

Where to Watch the Union Budget 2025 Presentation?

You can follow www.angelone.in/news to follow the live update on the Union Budget 2025. 

Accessing the Budget Documents

The Union Budget documents will be available digitally on the official government portal, www.indiabudget.gov.in. The budget documents, including the Annual Financial Statement, Demand for Grants (DG), and the Finance Bill, can also be accessed through the Union Budget Mobile App.

Things to Know Ahead of Union Budget 2025

Seventh Pre-Budget Consultation Meeting

Finance Minister Nirmala Sitharaman will present the Union Budget for 2025-26 on February 1, 2025. In preparation, she chaired the seventh Pre-Budget Consultation meeting with key stakeholders from the financial sector and capital markets. Click here to learn more about the key industry demands and suggestions that emerged during the discussions. 

NAREDCO Proposes Hike in Housing Loan Interest Deduction For Budget 2025

As per news reports, the National Real Estate Development Council (NAREDCO) has urged the government to increase the deduction on housing loan interest payments from ₹2 lakh to ₹5 lakh in the upcoming 2025 Budget. This proposal is aimed at boosting the flow of funds into the affordable housing sector. Click here to learn more about the NAREDCO proposal on the hike in housing loan interest deduction. 

Home Loan Borrowers Hope for Enhanced Tax Benefits in this Budget

As per the Deloitte India report, Home loan borrowers and industry experts have expectations from the Union Budget 2025-26, hoping that Finance Minister Nirmala Sitharaman will address their long-standing demands for increased tax benefits. To know more about the proposals for consolidated and higher tax benefits, click here. 

Automobile Sector’s Expectations from Union Budget 2025

As Budget 2025 approaches, the automobile industry anticipates reforms to simplify GST classification, reduce tax rates on hybrid vehicles, and streamline ITC refunds for EV manufacturers. These measures aim to enhance growth, sustainability, and ease of doing business.

Click here to know more about other key expectations. 

Budget 2025: Key Expectations for Life Sciences & Healthcare Growth

As per Deloitte’s report, India’s pharmaceutical sector has transformed into a global leader in drug and vaccine manufacturing, supplying medicines to over 200 countries. Click here to learn more about the key expectations from the life sciences and healthcare (LSHC) sector, particularly to address ongoing challenges and capitalise on growth opportunities. 

Key Expectations for Union Budget 2025-26: Tax Reforms and Growth Strategies

As per  Deloitte’s report, Union Budget 2025-26 will focus on bolstering private consumption, investment, and export competitiveness while addressing inflation and enhancing infrastructure development. Key tax reforms include simplifying compliance for Non-Resident Indians (NRIs) by enabling direct tax payments from overseas bank accounts and providing clarity on stock option taxation for non-resident employees to reduce litigation. 

To get a deeper dive into 4 major expectations from the union budget 2025-26, click here. 

Financial Services Sector Expectations in this Budget

As India prepares for the Union Budget 2025, the financial services sector anticipates reforms to enhance growth and sustainability. To learn more about the industry’s expectations for the upcoming Union Budget 2025, as mentioned in various media reports, click here.

Key Expectations for Boosting India’s Retail Sector in Union Budget 2025

As per Deloitte’s Budget Expectations 2025 analysis report, the current landscape of the Indian retail sector is shaped by both challenges and opportunities, with varying dynamics across urban and rural markets. To learn more about the Expectations in the Retail Sector for Union Budget 2025, click here. 

AMFI Seeks Indexation Return for Debt Funds in Budget 2025

AMFI urges Budget 2025 to restore indexation benefits for debt funds, boost long-term savings, and align taxation with NPS to fuel investor confidence and growth. To know more about the 15-point proposal for the Union Budget 2025-26 by AMFI, click here. 

Technology, Media, and Telecommunications Sector Expectations in this Budget

The TMT sector anticipates reforms such as tax relief for data centres and rising scope for carrying forward losses on amalgamation. To learn more about the sector’s expectations, click here. 

ICAI Proposes Joint Taxation for Married Couples in Budget 2025

Budget 2025 could introduce joint taxation for married couples, as suggested by ICAI, offering higher exemptions and improved tax slabs to ease financial burdens. To learn more about the key points of ICAI’s proposal, click here. 

CII Proposes 10-Point Plan to Simplify Business and Boost Transparency for Budget 2025

CII’s 10-point agenda for Budget 2025 focuses on easing business processes by simplifying regulations, reducing compliance, and improving transparency to boost growth. To know more about the key recommendations by CII, click here. 

Pharma and Healthcare Sector Seek Tax Relief and Increased Spending in Budget 2025

The Indian pharmaceutical and healthcare industries are optimistic about Finance Minister Nirmala Sitharaman’s upcoming Union Budget 2025. Their wish list includes increased healthcare spending, tax cuts for research and development (R&D), and support for infrastructure growth to drive innovation and accessibility. To know more about the expectation on tax relief, R&D and health care spending, click here. 

Key Highlights of Last Budgets Under FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman’s approach to budget-making over the years has evolved to address the challenges and opportunities of each specific year. To know more about the key highlights from the last Union Budgets, click here. 

Budget 2025: Space Sector Seeks PLI, Tax Relief, and Boosted Funding

India’s space sector demands a PLI scheme, tax cuts, higher budgets, and strategic incentives in Budget 2025 to drive growth and global competitiveness. To know more about India’s space sector expectations for the Union Budget 2025-26, click here. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

On Tuesday, January 28, 2025, the benchmark indices, BSE Sensex and NSE Nifty50, closed on a positive note. The 30-share Sensex rose by 535.24 points, or 0.71%, to finish at 75,901.41, trading within a range of 78,512.96 to 78,622.88 during the session. Similarly, the NSE Nifty50 ended in the green, gaining 128.10 points, or 0.56%, to settle at 22,957.25. The index recorded an intraday high of 23,137.95 and a low of 22,857.65.

Top Gainers of the Day

• Bajaj Finance: Opened at ₹7,390.00, hit a high of ₹7,706.80, and is now at ₹7,610.00, with a 4.31% gain.
• Axis Bank: Started at ₹960, peaked at ₹993.85, and is currently trading at ₹983.25, up by 3.71%.
• Shriram Finance: Opened at ₹520.05, reached a high of ₹541.80, and is trading at ₹529.85, up 3.56%.
• Bajaj Finserv: Began trading at ₹1,732.95, climbed to ₹1,788.05, and is at ₹1,770.10, a 3.42% rise.
• HDFC Bank: Opened at ₹1,647.00, touched ₹1,684.30, and is at ₹1,673.30, gaining 2.67%.

Top Losers of the Day

 

• Sun Pharma: Opened at ₹1,779.80, dropped to ₹1,693.10, and is currently at ₹1,711.00, down 4.24%.
• Britannia: Opened at ₹5,181.15, fell to ₹5,018.20, and is trading at ₹5,065.00, a 2.15% decline.
• Hindalco: Began at ₹590.10, reached a low of ₹568.30, and is now at ₹574.70, down by 2.08%.
• Grasim: Started at ₹2,458.00, dropped to ₹2,399.80, and is trading at ₹2,415.00, losing 1.75%.
• BEL: Opened at ₹263.50, touched a low of ₹252.70, and is currently at ₹258.50, down 1.69%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The drone industry in India is rapidly growing, offering exciting opportunities for investors. Drones are transforming sectors like agriculture, logistics, defence, and entertainment, opening new possibilities for expansion. With rising demand for new drone applications and government support, the market is set for significant growth. In this blog, we will explore the top drone stocks in India for February 2025.

Overview of the Drone Industry in India

The Indian drone market is expected to reach ₹120-150 billion (USD 1.5-1.9 billion) by 2026. Drones are currently most widely used in infrastructure and agriculture, but their applications are expanding across various industries. The industry’s growth is driven by increasing uses, government support, and the rise of startups exploring new ways to use drones.

The Government of India has set an ambitious target to make India a global leader in drone technology by 2030. To support this, the government is:

• Introducing liberal policies to encourage businesses and individuals to adopt drone technology.
• Aiming to attract ₹50 billion (USD 6.7 billion) in investments over the next 3 years, which will create over 10,000 jobs and boost MSME investments by relaxing eligibility criteria for the Production-Linked Incentive (PLI) scheme.

Best Drone Stock in February 2025 Based on 5Y CAGR

Note: The best drone stocks in India for February 2025 have been sorted based on 5Y CAGR as of January 28, 2025. 

Overview of Best Drone Stocks in February 2025

1. Zen Technologies Limited

Zen Technologies Limited was founded in 1996. The company focuses on creating and manufacturing combat training and counter-drone solutions for defence and security forces. It is committed to developing technologies that support the Indian armed forces, state police, and paramilitary forces.

For the quarter ending September 2024, Zen Technologies reported a revenue of ₹241.69 crore and a net profit of ₹65.24 crore. In comparison, for the quarter ending June 2024, the company had a revenue of ₹253.96 crore and a net profit of ₹74.18 crore. 

Key metrics: 

• Earning per share (EPS): ₹22.61
• Return on equity (ROE): 13.05%

2. RattanIndia Enterprises Limited

RattanIndia Enterprises Limited is the main company of the RattanIndia Group. It focuses on modern, technology-driven businesses such as e-commerce, electric vehicles, and drones.

In September 2024, RattanIndia Enterprises Limited reported a revenue of ₹5.59 crore and a net loss of ₹244.68 crore. In June 2024, the company had a revenue of ₹1,024.74 crore and a net profit of ₹863.09 crore.

Key metrics: 

• EPS: ₹5.30
• ROE: 46.71%

3. Hindustan Aeronautics

Hindustan Aeronautics is involved in making aircraft and helicopters, as well as providing repair and maintenance services for them.

For the period ending September 2024, Hindustan Aeronautics reported a revenue of ₹5,976.55 crore and a net profit of ₹1,490.36 crore. In comparison, the company posted revenue of ₹4,347.57 crore and a net profit of ₹1,435.59 crore for June 2024. 

Key metrics: 

• EPS: ₹126.67
• ROE: 29.17%

4. DCM Shriram

DCM Shriram manufactures fertilisers, chlorovinyl products, and cement in Kota, Rajasthan, and chlor-alkali in Bharuch, Gujarat.

In December 2024, DCM Shriram reported a revenue of ₹3,424.59 crore and a net profit of ₹248.98 crore. For September 2024, the revenue was ₹3,049.51 crore with a net profit of ₹49.20 crore. 

Key metrics: 

• EPS: ₹32.59
• ROE: 7.61%

5. Info Edge

Info Edge is a leading Indian online classifieds company with a range of brands. It owns popular platforms such as Naukri.com (job recruitment), 99acres.com (real estate), Jeevansathi.com (matrimonial services), and Shiksha.com (education information). The company also invests in various startups in the online sector and continues to expand its investment portfolio.

For the quarter ending September 2024, Info Edge reported a revenue of ₹656.10 crore and a net profit of ₹85.88 crore. In comparison, the revenue for June 2024 was ₹638.90 crore, with a net profit of ₹232.29 crore. 

Key metrics: 

• EPS: ₹57.31
• ROE: 2.41%

Best Drone Stock in February 2025 Based on Market Cap

Note: The top drone stocks in India for February 2025 have been sorted based on market cap as of January 28, 2025. 

 

Best Drone Stock in February 2025 Based on Net Profit Margin

Note: The top drone stocks list in India for February 2025 has been sorted based on net profit margin as of January 28, 2025. 

Things to Keep in Mind Before Investing in Drone Stocks in India

Investing in drone stocks can be a profitable opportunity, but it’s important to evaluate several factors before making a decision. Here are the key points to consider:

1. Regulatory Environment

The drone industry in India is regulated by the Directorate General of Civil Aviation (DGCA). The regulatory framework is complex and continues to evolve, so it’s important to stay updated on any new rules. Changes in regulations could affect the growth and operations of drone companies.

2. Market Demand and Growth Potential

Before investing, assess the demand for drones and the industry’s long-term growth potential. While the sector is expanding rapidly, it’s important to understand future trends and projections to make an informed decision.

3. Technology and Innovation

Look at the technological advancements and innovation plans of drone companies. Companies that are developing new, cutting-edge drone technologies and software are likely to perform better in the long term. Innovation will be key to maintaining growth.

Should You Invest in Drone Stocks?

The drone industry is growing quickly, with drones becoming essential in sectors like agriculture, logistics, defence, and entertainment. This growth presents great opportunities for companies in the field to increase market share and revenues. However, there are some challenges to consider.

Regulatory challenges are a major concern, as governments, including India’s, are still creating rules to ensure drones are used safely. Stricter rules could slow the industry’s growth or increase costs for companies. Technological challenges, such as improving battery life, navigation systems, and reliability, also need to be overcome.

The drone industry is highly competitive, with both established companies and startups fighting for market share. Companies need to invest heavily in research and development to stay ahead. Additionally, public acceptance of drones, especially regarding privacy and safety concerns, could impact their widespread use.

Conclusion

The drone industry has strong growth potential, but it comes with risks. To make a smart investment, it’s crucial to do thorough research into regulations, technology, and competition. Because of the risks and rewards involved, diversifying your investments and staying informed about the sector’s developments will help reduce risks and improve chances for long-term gains.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The standard deduction is a fixed amount that salaried individuals can subtract from their taxable income without needing to provide any documentation or proof of expenses. First introduced in 1974 under Section 16 of the Income Tax Act, this deduction has undergone several changes over the years.

History of Standard Deduction

Introduction in 1974

The standard deduction was implemented in 1974 to simplify tax calculations for salaried taxpayers.

Multiple Revisions Over the Years

Tax experts highlight that the percentage and maximum limit of the standard deduction have been revised many times.

Elimination in 2005

In the 2005–06 fiscal year, Finance Minister P. Chidambaram removed the standard deduction, stating it was unnecessary due to the expansion of income tax slabs and exemption limits.

• In FY 2004-05, the standard deduction was ₹30,000 or 40% of salary (whichever was lower) for those earning up to ₹5 lakh annually.
• For individuals earning above ₹5 lakh, the deduction was limited to ₹20,000.
• From FY 2005-06, this benefit was discontinued.

Reintroduction in 2018

After a gap of 13 years, the standard deduction returned in Budget 2018 with a limit of ₹40,000.

Further Increases

• Budget 2019: Raised the deduction to ₹50,000.
• Budget 2023: Allowed individuals under the new tax regime to claim the ₹50,000 deduction.
• Budget 2024: Increased the deduction under the new tax regime to ₹75,000, while it remained ₹50,000 under the old regime.

Who Can Claim the Standard Deduction?

All salaried employees and pensioners are eligible for the standard deduction, regardless of their income level.

Benefits of the Standard Deduction

1. No Documentation Required
   Claiming this deduction does not require maintaining receipts or proof of expenses such as medical bills, travel costs, or investments.
2. Reduces Taxable Income
   It directly lowers taxable income by deducting a fixed amount from gross salary.
3. Wide Eligibility
   Most salaried employees and pensioners can avail themselves of this benefit.

What’s Next?

With Budget 2025 approaching, it remains to be seen if the standard deduction will be changed. The different limits under the old and new tax regimes may also be further aligned or revised.

Budget 2025: Key Details and Where to Watch

Union Finance Minister Nirmala Sitharaman will present the Union Budget for 2025 on Saturday, February 1. This will be her eighth consecutive budget presentation and the second full financial budget for Prime Minister Narendra Modi’s NDA government in its third term. Similar to previous years, the 2025 Budget will be presented in a paperless format.

The Union Budget outlines the government’s planned spending and income for the upcoming fiscal year, from April 1 to March 31. It also includes fiscal, spending, and economic policies, which have been part of the budget since 2019.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.