The Union Budget 2025 has introduced key updates to the new tax regime 2025, impacting millions of taxpayers in India. With new income tax slabs, increased rebates and policy shifts, the government aims to make tax compliance easier while encouraging individuals to transition from the old tax regime to the new tax slabs 2025. So, let’s quickly catch New Tax Regime 2025 with Budget Highlights, Tax Slabs & Key Changes.
In this article, weβll break down:
- Budget 2025 highlights related to income tax
- New income tax slab for AY 2025-26
- Old vs new tax regime slabs
- Income tax calculator 2025 & tax-saving tips
- Rebates, deductions and exemptions under the new tax regime
Letβs dive in! π
π Budget 2025 Highlights: Key Tax Announcements
The Union Budget 2025 live updates confirmed several major changes in the income tax budget 2025. Here are the highlights of Budget 2025 India:
β No Income Tax up to βΉ12 Lakh β Individuals earning up to βΉ12,00,000 annually may now enjoy zero tax liability under the new tax slabs 2025 (subject to rebates). The total limit will now be βΉ12,75,000 for salaried person with standard deduction of βΉ75,000.
β New Tax Slab 2025-26 β Revised tax slabs under the new income tax regime (See below).
β Higher TDS Exemption on Fixed Deposits β Threshold for TDS on interest income has been increased to promote savings. The limit will increase from βΉ 40,000 to βΉ 50,000 per financial year starting April 1, 2025.
β Simplified ITR Filing Process β The government is working on making ITR filing seamless with AI-based tax calculation tools.
β Capital Gains Tax Restructuring β A uniform capital gains tax structure is expected across asset classes.
(For detailed government updates, visit PIB India)
π New Income Tax Slab for AY 2025-26
Income Slab (βΉ) | New Tax Regime 2025 |
---|---|
Up to 4,00,000 | 0% (No Tax) |
4,00,001 – 8,00,000 | 5% |
8,00,001 – 12,00,000 | 10% |
12,00,001 – 16,00,000 | 15% |
16,00,001 – 20,00,000 | 20% |
20,00,001 – 24,00,000 | 25% |
Above 24,00,000 | 30% |
πΉ No income tax till βΉ12 lakh (after rebates under Section 87A income tax).
πΉ No changes to surcharge & cess rates.
π The total tax benefit of slab rate changes and rebate at different income levels has been illustrated. Check link Income Tax Slabs for AY 2025-26
π Old vs New Tax Regime: Which One to Choose?
π΅ Old Tax Regime (With Deductions & Exemptions)
β
Standard Deduction βΉ50,000
β
80C, 80D, 80E Deductions (PPF, LIC, ELSS, Home Loan Interest, etc.)
β
HRA, LTA and other allowances
π’ New Tax Regime 2025 (Lower Tax Slabs, Fewer Deductions)
β
Lower tax rates but fewer exemptions
β
Standard Deduction available
β
Suitable for taxpayers with minimal investments
Which one is better? Use a new tax regime 2025 calculator to check! π©
(π Try the official Income Tax Calculator 2025-26 on Income Tax India)
π‘ Tax-Saving Tips Under the New Tax Regime
1οΈβ£ Opt for the Higher Standard Deduction β Utilize the standard deduction for salary and pension income.
2οΈβ£ Invest in Tax-Free Options β Consider PPF, NPS, EPF (though deductions are limited in the new regime).
3οΈβ£ Maximize Rebates β If your taxable income is below βΉ12 lakh, claim benefits under Section 87A.
4οΈβ£ Plan Capital Gains β Restructure long-term gains to fall under the new tax slab for FY 2024-25.
5οΈβ£ Use Tax Calculators β Always check savings under old vs new tax regime calculator before filing ITR.
π How to File ITR for AY 2025-26
π’ Whatβs Next for Taxpayers?
The new tax regime 2025 is designed to simplify taxation but the old tax regime slabs still offer deductions that might benefit high-saving individuals. Itβs crucial to analyze tax liability using a tax calculator 2025 before making financial decisions.
With the Budget 2025 income tax slabs, the focus is on tax simplification and digital reforms. If youβre a salaried professional, freelancer or business owner, staying informed is key to maximizing savings. π
Have questions about the new budget 2025 tax slab? Drop your queries in the comments below! π¬
β οΈ Disclaimer:
This article is for informational purposes only. Tax policies may be subject to further government revisions. Always consult a tax professional or refer to Income Tax India for the latest updates.
#New Tax Regime 2025: Budget Highlights, Tax Slabs & Key Changes
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