Budget 2025: How India’s New Tax Regime Benefits Taxpayers
?? What’s Changing in the New Tax Regime?
Budget 2025 introduces revised income tax slabs, offering better tax savings for individuals. The biggest highlight is that taxpayers earning up to ?12 lakh will now pay zero tax, thanks to revised slabs and rebates.
The new slabs under Section 115BAC(1A) are as follows:
For many taxpayers, these changes mean higher disposable income and lower tax liabilities compared to previous slabs.
?? What’s the Maximum Income for NIL Tax?
Under the new regime, individuals earning up to ?12 lakh per year will not pay any income tax. This is due to a combination of rebates and revised slabs, making it a major relief for salaried individuals and middle-class taxpayers.
For example: ? An individual earning ?12 lakh paid ?80,000 in taxes under the previous structure. ? Now, with rebates and slab adjustments, their tax liability is zero.
This change ensures that more taxpayers retain their earnings and have higher savings for investments or daily expenses.
?? Key Taxpayer Benefits (0-24 Lakhs)
The table below shows direct tax savings under the revised slabs:
领英推荐
?? Tax Changes & Standard Deduction in Budget 2025
?? Standard Deduction: Salaried taxpayers continue to get ?75,000 in deductions under the new regime.
This means: ? Tax-free salary for incomes up to ?12.75 lakh after standard deduction.
?? Higher Savings: The government estimates that ?1 lakh crore will now be available in the hands of taxpayers due to these changes.
?? More Taxpayers Benefit: 8.75 crore ITR filers will see lower tax liability under this new structure.
?? What This Means for You
? Salaried individuals earning up to ?12 lakh can save up to ?80,000 in taxes. ? Higher income groups also benefit from lower slab rates. ? No action is required—this new tax regime is the default.
If you earn above ?12 lakh, consider tax planning strategies to maximize benefits.
Final Thoughts
The Budget 2025 tax reforms aim to put more money back in taxpayers’ hands while simplifying compliance. With a higher NIL tax limit, better rebates, and revised slabs, the new regime is expected to boost spending power and encourage growth.