Union Budget 2025: Key Changes in Income Tax System
| Summary/Static | Details |
|---|---|
| Why in the news? | Income Tax Budget 2025: No income tax for up to ₹12 lakh in the new tax regime. |
| Income Tax Exemption | Individuals earning up to ₹12 lakh will pay no income tax (₹12.75 lakh for salaried individuals, including a standard deduction of ₹75,000). |
| Revised Tax Slabs | ₹0 - ₹4 Lakh: Nil₹4 Lakh - ₹8 Lakh: 5%₹8 Lakh - ₹12 Lakh: 10%₹12 Lakh - ₹16 Lakh: 15%₹16 Lakh - ₹20 Lakh: 20%₹20 Lakh - ₹24 Lakh: 25%Above ₹24 Lakh: 30% |
| Tax Rebate for Earnings Up to ₹12 Lakh | Tax rebate for earnings up to ₹12 lakh, resulting in zero tax liability. |
| Impact on ₹12 Lakh Income | Tax benefit of ₹80,000. |
| Impact on ₹18 Lakh Income | Tax benefit of ₹70,000. |
| Impact on ₹25 Lakh Income | Tax benefit of ₹1,10,000. |
| Increased Disposable Income | Designed to boost savings, consumption, and economic growth. |
| Relief for Senior Citizens | Increase in TCS threshold to ₹10 lakh, doubling TDS threshold. |
| Economic Sectors Affected | Sectors like FMCG, automobiles, and retail to benefit from increased consumer spending. |