Concluding the Union Budget 2025, Finance Minister Nirmala Sitharaman announced that income slabs and rates are changed across the board to reduce taxes on middle class. This will reduce taxes on middle class, which will in turn leave more money in their hands and boost household consumption and investment.
In the new regime, tax rate will be as follows:
- Rs 0 to 4 lakh Nil
- Rs 4 to 8 lakh - 5 per cent
- Rs 8 to 12 lakh - 10 per cent
- Rs 12 to 16 lakh : 15 per cent
- Rs 15 to 20 lakh: 20 per cent
- Rs 20 to 24 lakh : 25 per cent
- Rs 24 lakh and above: 30 per cent
Examples
Giving examples, the finance minister said that a taxpayer in new regime with 12 lakh income will get a benefit of Rs 80,000 in tax, which is 100% of tax payable as per existing rates.
For A taxypayer with Rs 18 lakh income, there will be a benefit of Rs 70,000 in tax, 30 per cent of tax payable, as per existing rates.
A taxpayer with Rs 25 lakh income will get a benefit of Rs 1.10 lakh, which is 25 per cent of his tax payable.
The minister said with the new announcement, the government has forgone Rs 1 lakh crore in direct taxes and Rs 2,600 crore in indirect taxes
