ET OnlinePost Budget 2025, the income tax department said on the social media platform X that taxpayers in aggregate will get Rs 1 lakh crore. This has come after Finance Minister Nirmala Sitharaman has proposed new income tax slabs under the new tax regime in Budget 2025. The change in rates and slabs will benefit all such assessees who opt for the new tax regime in the upcoming fiscal year 2025-26.
The finance minister has announced an increase in the tax rebate under Section 87A to Rs 60,000 from Rs 25,000 under new tax regime currently. The maximum total taxable income under the proposed new tax regime for which an individual taxpayer has no tax burden is Rs. 12 lakhs. Currently, the limit of income for nil tax payment is Rs 7 lakh till March 31, 2025.
New income tax calculation after Budget: How much tax will salaried save on incomes of Rs 12.75 lakh, Rs 15 lakh, Rs 20 lakh, Rs 25 lakh under new tax regime
“Approximately Rs. 1 lakh crore will be made available in the hands of the taxpayers by virtue of changes in slab, rates and rebate,” according to the Income Tax department FAQs posted on social media X.
The income tax department has provided a table showing income tax benefits at different income levels for taxpayers. For instance, an individual having gross taxable income of Rs 10 lakh will have total benefit of Rs 50,000. Similarly, taxpayer having a gross taxable income of Rs 15 lakh will get total benefit of Rs 35,000
Along with the income tax benefit table, the income tax department has also released some FAQs to make it easier for taxpayers to understand the Income Tax Act. Here are some of the FAQs
What is ‘New tax Regime’?
New regime provides for concessional tax rates and liberal slabs. However, no deductions are allowed in the new regime (other than those specified for e.g. 80JJAA, 80M, standard deduction).
The change in tax slabs is beneficial for which category of persons?
According to the Income Tax, “New tax regime is applicable to person, being an individual or Hindu undivided family or association of persons [other than a co-operative society], or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2. Accordingly, change in tax slabs will benefit all these persons.
The finance minister has announced an increase in the tax rebate under Section 87A to Rs 60,000 from Rs 25,000 under new tax regime currently. The maximum total taxable income under the proposed new tax regime for which an individual taxpayer has no tax burden is Rs. 12 lakhs. Currently, the limit of income for nil tax payment is Rs 7 lakh till March 31, 2025.
New income tax calculation after Budget: How much tax will salaried save on incomes of Rs 12.75 lakh, Rs 15 lakh, Rs 20 lakh, Rs 25 lakh under new tax regime
“Approximately Rs. 1 lakh crore will be made available in the hands of the taxpayers by virtue of changes in slab, rates and rebate,” according to the Income Tax department FAQs posted on social media X.
The income tax department has provided a table showing income tax benefits at different income levels for taxpayers. For instance, an individual having gross taxable income of Rs 10 lakh will have total benefit of Rs 50,000. Similarly, taxpayer having a gross taxable income of Rs 15 lakh will get total benefit of Rs 35,000
Income tax benefit to taxpayers for different income levels
| Total Income | Tax as per existing rates[as per Finance (No.2) Act, 2024 | Tax as per proposed rates | Benefit of Rate/Slab | Rebate Benefit [with reference to (3)] | Total Benefit[computed when compared to current slab rates] |
| -1 | -2 | -3 | (4)=(3)-(2) | -5 | (6)=(4)+(5) |
| 8 lac | 30,000 | 20,000 | 10,000 | 20,000 | 30,000 |
| 9 lac | 40,000 | 30,000 | 10,000 | 30,000 | 40,000 |
| 10 lac | 50,000 | 40,000 | 10,000 | 40,000 | 50,000 |
| 11 lac | 65,000 | 50,000 | 15,000 | 50,000 | 65,000 |
| 12 lac | 80,000 | 60,000 | 20,000 | 60,000 | 80,000 |
| 13 lac | 1,00,000 | 75,000 | 25,000 | 0 | 25,000 |
| 14 lac | 1,20,000 | 90,000 | 30,000 | 0 | 30,000 |
| 15 lac | 1,40,000 | 1,05,000 | 35,000 | 0 | 35,000 |
| 16 lac | 1,70,000 | 1,20,000 | 50,000 | 0 | 50,000 |
| 17 lac | 2,00,000 | 1,40,000 | 60,000 | 0 | 60,000 |
| 18 lac | 2,30,000 | 1,60,000 | 70,000 | 0 | 70,000 |
| 19 lac | 2,60,000 | 1,80,000 | 80,000 | 0 | 80,000 |
| 20 lac | 2,90,000 | 2,00,000 | 90,000 | 0 | 90,000 |
| 21 lac | 3,20,000 | 2,25,000 | 95,000 | 0 | 95,000 |
| 22 lac | 3,50,000 | 2,50,000 | 1,00,000 | 0 | 1,00,000 |
| 23 lac | 3,80,000 | 2,75,000 | 1,05,000 | 0 | 1,05,000 |
| 24 lac | 4,10,000 | 3,00,000 | 1,10,000 | 0 | 1,10,000 |
| 25 lac | 4,40,000 | 3,30,000 | 1,10,000 | 0 | 1,10,00 |
Along with the income tax benefit table, the income tax department has also released some FAQs to make it easier for taxpayers to understand the Income Tax Act. Here are some of the FAQs
What is ‘New tax Regime’?
New regime provides for concessional tax rates and liberal slabs. However, no deductions are allowed in the new regime (other than those specified for e.g. 80JJAA, 80M, standard deduction).
The change in tax slabs is beneficial for which category of persons?
According to the Income Tax, “New tax regime is applicable to person, being an individual or Hindu undivided family or association of persons [other than a co-operative society], or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2. Accordingly, change in tax slabs will benefit all these persons.
