New Income Tax Slabs in Budget 2025: No tax till Rs 12 lakh income; 15% tax till Rs 16 lakh income; 20% tax till Rs 20 lakh income; see other details
Union Budget 2025: In an important announcement that came as a gift for India's crores of taxpayers, Finance Minister Nirmala Sitharaman announced in her budget speech that under the new tax regime taxpayers will have to pay a nil tax till income up to Rs 12 lakh. She also revised tax slabs for new regime taxpayers. There was no change in the old tax regime.
Union Budget 2025, Income Tax Slabs, Revised Income Tax Slabs, New Tax Regime, Old Tax Regime: In an important announcement that came as a gift for India's crores of taxpayers, Finance Minister Nirmala Sitharaman announced in her budget speech that the new tax regime taxpayers will have to pay a nil tax till income up to Rs 12 lakh. Apart from that, they will also get a benefit of Rs 75,000. However, they will have to pay tax if their income annual income is higher than Rs 12.75 lakh. If the person is not salaried class, they won't get a standard deduction. After this announcement, tax slabs in the new tax regime have been revised. The Finance Minister, however, left the old tax regime untouched, and there was no change in that. "A person with an income of Rs 25 lakh gets a benefit of Rs 1.10 lakh," Finance Minister Nirmala Sitharaman says in her speech.
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Have slabs been revised?
After the Finance Minister gives relaxation for the salaried with income up to Rs 12 lakh, excluding Rs 75,000 standard deduction, tax slabs in the new tax regime have been revised. Check in which category your income will fall.
Rs 0-4 lakh income
Taxpayers don't need to pay any tax till this income.
Rs 4 lakh-8 lakh income slab
The income tax in this category is 5 per cent.
Rs 8 lakh-12 lakh slab
The income tax rate in this category is now 10 per cent.
Rs 12 lakh-16 lakh income slab
Taxpayers need to pay 15 per cent tax in this category.
Rs 16 lakh-20 lakh income bracket
The income tax rate in this category is 20 per cent.
Rs 20 lakh-24 lakh income bracket
The tax for taxpayers in this category is 25 per cent.
For income above Rs 24 lakh
The income tax in this category is 30 per cent.
What does Finance Minister says after income tax revision (Rs 12 lakh)
Finance Minister Nirmala Sitharaman says that a taxpayer in the new regime with an income of Rs 12 lakh will get a benefit of Rs 80,000 in tax.
What does Finance Minister says after income tax revision (Rs 18 lakh)
A person having income of Rs 18 lakh will get a benefit of Rs 70,000 in tax.
What does Finance Minister says after income tax revision (Rs 25 lakh)
A person with an income of Rs 25 lakh gets a benefit of Rs 1.10 lakh.
Which slabs have been revised?
Have a look at what were slabs in the new tax regime before Nirmala Sitharaman's budget speech today-
For income 0-Rs 3 lakh
There was no income tax.
For income Rs 3 lakh-Rs 7 lakh
The tax rate was 5 per cent.
For income Rs 7 lakh-Rs 10 lakh
The tax rate was 10 per cent.
For income Rs 10 lakh-Rs 12 lakh
The tax rate was 15 per cent.
For income Rs 12 lakh-Rs 15 lakh
The tax rate was 20 per cent.
For income Rs 15 lakh+
The tax rate was 30 per cent.