Union Budget 2025 : New Income Tax Bill Next Week | Live Updates

I am happy to announce that there will be no income tax payable up to income of 12 lakh rupees.  

So average income of 1 lakh per month, other than the special income from capital gains, under the new regime, this limit will be 12.75 lakhs for salaried tax payers due to the standard deduction of 75,000 rupees : Finance Minister.

New slabs are as follows :

Rs 0 to 4 lakh - NIL

Rs 4 to 8 lakh - 5%

Rs 8 to 12 lakh - 10%

Rs 12 - 16 lakh - 15%

Rs 16 - 20 lakh - 20%

Rs 20 - 24 lakh - 25%

Rs 24 lakh plus - 30%

"To tax payers up to 12 lakhs of normal income, other than special rate incomes such as capital gains, tax rebate is being provided in addition to the benefit due to slabchange reduction in such a manner that there is no tax payable by them," Finance Minister.

The Finance Minister illustrated with some examples as follows :

A tax payer, in the new regime, with an income of 12 lakh rupees, will get a benefit of 80,000 rupees in tax which is 100% of tax payable as per the existing rates"

A person having income of 18 lakh rupees will get a benefit of 70,000 rupees in tax which is 30% of tax payable as per existing rates.

A person with an income of Rs 25 lakhs will get a benefit of Rs 1.10 lakh rupees that is 25% of his tax payable as per the existing rates.

New tax slabs.

Rs 4 to 8 lakh - 5%

Rs 8 to 12 lakh - 10%

Rs 12 - 16 lakh - 15%

Rs 16 - 20 lakh - 20%

Rs 20 - 24 lakh - 25%

Rs 24 lakh plus - 30% income tax slab

To tax payers up to 12 lakh of income, other than special rate incomes, tax rebate is being provided due to the benefit in such a manner that there is no tax payable by them : FM.

FM announces personal income tax reforms with a special focus on the middle class.

NIL tax rate to Rs 12 lakhs rupees.

"I announce that there is no income tax payable upto income of Rs 12 lakh rupees," FM.

Slabs are being changed.

I propose to extend the period of incorporation to 5 years for start-ups : FM.

Omitting TCS on transactions related to the sale of goods to reduce compliance difficulties : FM

With a view to reduce litigation, the scope of safe harbour rules is being expanded : FM.

It is proposed to allow the benefit of two self-occupied properties to taxpayers without conditions: FM.

I propose to reduce the compliance burden for small charitable trusts : FM.

 Provision of higher TDS only in non-PAN cases : FM