Budget 2025: Union Finance Minister Nirmala Sitharaman has announced a big relief to tax payers. The government proposed in the budget for the change in income slabs and rates under the New Tax Regime. Under the New Tax Reseem, now tax payers will not have to pay any tax till income of Rs 12 lakh. According to the new provisions, zero tax on income of four lakh rupees, five percent tax on income of four to eight lakh rupees, 10 percent on income of eight to 12 lakh rupees and 15 percent on income of Rs 12 to 16 lakh will be levied.
The government has also given good news to those who file ITRs under Old Tax Regime. The government has increased the limit of standard deduction from Rs 50 thousand to Rs 75 thousand. According to the budget provisions, under the New Tax Regime, the examples limit increased to 4 lakhs. The first limit was three lakh rupees. Tax rebate will be available under 87A from four lakh to 12 lakh income.
New tax system: for 2025-2026
0 to 4,00,000 rupees – no tax
4,00,000 to 8,00,000 rupees – 5%
8,00,0001 to 12,00,000 rupees – 10%
12,00,001 to 16 lakh rupees – 15%
16,00,001 to 20 lakh rupees –20%
20,00,001 to 24 lakh rupees – 25%
Over 24 lakhs – 30%
Slab under New Tax Regime (FY 2024-25)
Note: Tax rebate up to 20 thousand rupees provided income does not exceed Rs 7 lakh