Budget 2025: Good News! No Tax on earnings up to 12.75 lakh, learn about the benefits of the new tax regime

The Budget for 2025-26, significant relief was provided for income tax under the new tax regime. Now, individuals earning up to ₹12 lakh will not have to pay any income tax. The new tax regime also brings changes to the tax slabs. However, this exemption up to ₹12 lakh comes under Section 87A of the Income Tax Act.

Structure of the New Income Tax Regime:

Under the new tax regime, the following tax slabs have been revised:

1. ₹4,00,000 to ₹8,00,000: 5% tax
2. ₹8,00,000 to ₹12,00,000: 10% tax
3. ₹12,00,000 to ₹16,00,000: 15% tax
4. ₹16,00,000 to ₹20,00,000: 20% tax
5. ₹20,00,000 to ₹24,00,000: 25% tax
6. Above ₹24,00,000: 30% tax

Additionally, salaried individuals will receive an additional standard deduction of ₹75,000. This means that if a salaried person's total annual income is ₹12.75 lakh, they will not be required to pay any tax.

No Tax on Income up to ₹12 Lakh:

Finance Minister Nirmala Sitharaman has announced a significant relief for taxpayers in Budget 2025-26, stating that individuals with an annual income of up to ₹12 lakh will not be liable to pay any tax.

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