Budget 2025: Finance Minister Nirmala Sitharaman emphasized the importance of democracy, demography, and demand in driving India’s growth. In a significant announcement, Sitharaman announces that individuals with an annual income of up to Rs 12 lakh will be exempt from paying income tax under the new tax regime. For salaries taxpayers, the exemption limit is Rs 12.75 lakh with standard deduction of Rs 75,000.
Additionally, the Finance Minister announced a revised set of tax slabs and rates under the new tax regime.
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Budget 2025: How Do New Income Tax Slabs Differ From The Old Ones?
New Tax Slabs
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| Income Range | Tax Rate |
|---|---|
| ₹0 to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Old Tax Slabs
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% (Tax rebate under Section 87A up to ₹7 lakh) |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Tax Slabs Under Old Tax Regime
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |