Budget 2025: New Income Tax Slabs & ₹12.75 Lakh Tax-Free Income – Key Updates : The Union Budget 2025 brings significant relief to taxpayers, with a major update in the new income tax regime. The Finance Minister has announced that there will be no tax on income up to ₹12 lakh under the revised tax structure.
Key Highlights of the New Income Tax Regime
✔ Tax-Free Income up to ₹12.75 Lakh:
- A standard deduction of ₹75,000 has been introduced.
- With this deduction, individuals earning up to ₹12.75 lakh will not be required to pay any income tax.
✔ ₹80,000 Tax Savings for Middle-Class Earners:
- Middle-class taxpayers earning up to ₹12 lakh can save ₹80,000 under the new tax structure.
✔ Revised Tax Slabs & Additional Benefits:
- As per the latest updates, the tax slabs under the new tax regime have been revised again to provide additional benefits to salaried individuals.
- Under the current scenario, income up to ₹7.75 lakh is completely tax-free, considering the standard deduction.
New Tax Slabs
Under the new tax regime, the minimum tax exemption limit has been increased from ₹3 lakh to ₹4 lakh. The tax rates for different income slabs are as follows:
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 4 lakh | No Tax |
| 4 – 8 lakh | 5% |
| 8 – 12 lakh | 10% |
| 12 – 16 lakh | 15% |
| 16 – 20 lakh | 20% |
| 20 – 24 lakh | 25% |
| Above 24 lakh | 30% |
Official Website
https://financialservices.gov.in/beta/en
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Tag : Budget 2025: New Income Tax Slabs & ₹12.75 Lakh Tax-Free Income – Key Updates