With the introduction of Budget 2025 by Finance Minister Nirmala Sitharaman, a new tax regime with freshly set tax slabs is being introduced!
Let’s examine these laws and how they will make life easier for the country's middle-class population.?
New Tax slabs set up by the Finance minister in Budget 2025 are-?
- 0-4 Lakhs- NIL
- 4-8 Lakhs- 5 %
- 8-12 Lakhs- 10%
- 12- 16 Lakhs- 15%
- 16- 20 Lakhs- 20%
- 20- 24 Lakhs- 25%
- Above 24 Lakhs- 30%
Some interpretations of the new tax regime? under Budget 2025 are as follows-
- The tax slabs provided by the finance minister prove that if you are somebody with an annual income of 12 Lakh and are a salaried person, a tax rebate will be provided to you, and you will not be liable to pay any tax in that case and scenario. You are exempted from the direct tax on your income if you also earn Rs. 12 Lakh per annum.
- As per the new tax regime, such a person with an annual income of 12 lakh will benefit by Rs. 80,000.
- So, if your income is Rs 12,75,000, the total income tax you must pay the government is NIL, which was Rs 80,000 until the last financial year. A standard deduction of Rs 75000 is offered to these people.
- On the other hand, if your income is Rs. 15.75 Lakh, your tax outgo will be Rs. 1.05 Lakh, which is comparatively lower than last year’s tax outgo, which ranged as high as Rs. 1.4 Lakh.?
- Additionally, if your income is 25.75 lakh, you must pay an income tax of Rs. 3.3 Lakh, unlike Rs. 4.4 Lakh, which you were to pay as per budget 2024.
- If you earn Rs. 4 Lakh or less per annum, you won’t be liable to pay any tax under the new tax regime introduced by the Budget 2025.
What effects will the changes offered by Budget 2025 in terms of distinct tax slabs have on the middle class?
- Finance Minister Nirmala Sitharaman said that the purpose of exempting the middle class from paying income tax is to ensure that this class of the population has more income left for savings, investments and boosting consumption on a household level.?
- The voice of the middle class is finally heard in an attempt to lower the tax burden on salaried individuals who previously had no income left for savings and investments.?
- According to the finance minister, Budget 2025 was an apparent effort to achieve the twin objectives of fiscal discipline and supporting growth.?
- Individuals guided by urban mediocrity will be the most affected by Budget 2025.
- Budget 2025 was an attempt to pave a different way and step out of the prevalent issue guided by the previous years' budget plans.
- The New Tax Regime promises an optimistic future for Indian middle-class households. Tax slabs and their relaxation have proved this.?
Finance Minister Nirmala Sitharam additionally said that Budget 2025 has a lot of saving and investment opportunities for people of the middle class. Apart from that, income taxes for various income categories have also significantly decreased under the updated tax slabs. It is the government’s move towards making India an investment-driven nation.
