No Income Tax Till ₹12 Lakh, Announces Nirmala Sitharaman: Check New Tax Slab Here

2025-02-01 03:20:20

(MENAFN- Live Mint) Union Finance Minister Nirmala Sitharaman delivered her 8th consecutive Union Budget today, February 1, 2025, at 11 am. The Budget aims to provide significant benefits to taxpayers, particularly the middle class, by reducing the tax burden and leaving more disposable income in their hands.

Also Read | Budget 2025 LIVE: FM Sitharaman proposes no income tax up to ₹12.75 lakh Major changes in the income tax slabs for FY 2025-26

In a move that has been widely anticipated, the Union Budget 2025-26 introduced a revamped income tax structure designed to reduce taxes for the middle class. The new tax regime will provide substantial relief, making it more attractive for taxpayers.

Also Read | Income tax Budget 2025: No income tax for upto income of ₹12 lakh in new tax Key announcements on income tax rates:

No tax on income up to Rs. 12 lakh: The most significant update is that there will be no income tax payable on annual earnings of up to Rs. 12,00,000 under the new tax regime.

Revised income tax slabs under the new tax regime:

Income up to Rs. 4,00,000: No tax

Rs. 4,00,001 to Rs. 8,00,000: 5% tax

Rs. 8,00,001 to Rs. 12,00,000: 10% tax

Rs. 12,00,001 to Rs. 16,00,000: 15% tax

Rs. 16,00,001 to Rs. 20,00,000: 20% tax

Rs. 20,00,001 to Rs. 24,00,000: 25% tax

Above Rs. 24,00,000: 30% tax

Also Read | Budget 2025: Consumer durables Index rises 2%: Blue star Voltas gain up to 5% Income tax slabs under the old tax regime

While the new tax regime is being widely promoted, taxpayers can still opt for the old tax regime, which offers different slab rates:

Income up to Rs. 2,50,000: No tax

Rs. 2,50,001 to Rs. 5,00,000: 5% tax

Rs. 5,00,001 to Rs. 10,00,000: 20% tax

Above Rs. 10,00,000: 30% tax

Comparison: New tax regime vs. old tax regime

The new tax regime offers substantial benefits for middle-income earners by lowering the income threshold for tax payments. The introduction of higher exemptions in the new structure has been designed to stimulate household consumption, savings, and investments.

MENAFN01022025007365015876ID1109155826

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.