Here are some valuable resources to help you understand the revised income tax slabs under the new tax regime:
• Union Budget 2025-26 Summary: Provides an official summary of the budget, including detailed information on the new income tax slabs.
• Income Tax Calculator for FY 2025-26: An online tool to help you calculate your tax liability under the new regime.
• Economic Times – Income Tax Budget 2025 Live Updates: Offers live updates and detailed explanations of the new tax slabs and their implications.
• Mint – Income Tax Budget 2025 Live Updates: Provides insights on how to save under the new tax regime and detailed information on the revised tax slabs.
• Financial Express – New, Revised Income Tax Slab and Rates 2025-26: Details the updated tax slabs and rates introduced in the 2025 budget.
These resources offer comprehensive information to help you navigate the changes in the income tax structure and understand how they may affect your financial planning.
Here are some valuable resources to help you understand the revised income tax slabs under the new tax regime:
• Union Budget 2025-26 Summary: Provides an official summary of the budget, including detailed information on the new income tax slabs.
• Income Tax Calculator for FY 2025-26: An online tool to help you calculate your tax liability under the new regime.
• Economic Times – Income Tax Budget 2025 Live Updates: Offers live updates and detailed explanations of the new tax slabs and their implications.
• Mint – Income Tax Budget 2025 Live Updates: Provides insights on how to save under the new tax regime and detailed information on the revised tax slabs.
• Financial Express – New, Revised Income Tax Slab and Rates 2025-26: Details the updated tax slabs and rates introduced in the 2025 budget.
These resources offer comprehensive information to help you navigate the changes in the income tax structure and understand how they may affect your financial planning.
The Union Budget 2025 introduced significant changes to the income tax structure under the new tax regime, aiming to provide relief to taxpayers and stimulate economic growth.
Here’s a breakdown of the revised income tax slabs and their implications, accompanied by examples and calculations:
1. Revised Income Tax Slabs Under the New Tax Regime
The updated income tax slabs for the fiscal year 2025-26 are as follows:
• Income up to ₹4,00,000: No tax
• ₹4,00,001 to ₹8,00,000: 5%
• ₹8,00,001 to ₹12,00,000: 10%
• ₹12,00,001 to ₹16,00,000: 15%
• ₹16,00,001 to ₹20,00,000: 20%
• ₹20,00,001 to ₹24,00,000: 25%
• Above ₹24,00,000: 30%
2. Increased Tax Rebate Limit
Individuals with an annual income up to ₹12,00,000 are eligible for a full tax rebate, resulting in zero tax liability.
3. Standard Deduction
A standard deduction of ₹75,000 is available for salaried individuals, reducing the taxable income.
4. Tax Calculation Examples
Example 1: Annual Income of ₹10,00,000
• Gross Income: ₹10,00,000
• Standard Deduction: ₹75,000
• Taxable Income: ₹10,00,000 – ₹75,000 = ₹9,25,000
Tax Computation:
• Income up to ₹4,00,000: No tax
• ₹4,00,001 to ₹8,00,000: 5% of ₹4,00,000 = ₹20,000
• ₹8,00,001 to ₹9,25,000: 10% of ₹1,25,000 = ₹12,500
Total Tax: ₹20,000 + ₹12,500 = ₹32,500
Example 2: Annual Income of ₹15,00,000
• Gross Income: ₹15,00,000
• Standard Deduction: ₹75,000
• Taxable Income: ₹15,00,000 – ₹75,000 = ₹14,25,000
Tax Computation:
• Income up to ₹4,00,000: No tax
• ₹4,00,001 to ₹8,00,000: 5% of ₹4,00,000 = ₹20,000
• ₹8,00,001 to ₹12,00,000: 10% of ₹4,00,000 = ₹40,000
• ₹12,00,001 to ₹14,25,000: 15% of ₹2,25,000 = ₹33,750
Total Tax: ₹20,000 + ₹40,000 + ₹33,750 = ₹93,750
Example 3: Annual Income of ₹20,00,000
• Gross Income: ₹20,00,000
• Standard Deduction: ₹75,000
• Taxable Income: ₹20,00,000 – ₹75,000 = ₹19,25,000
Tax Computation:
• Income up to ₹4,00,000: No tax
• ₹4,00,001 to ₹8,00,000: 5% of ₹4,00,000 = ₹20,000
• ₹8,00,001 to ₹12,00,000: 10% of ₹4,00,000 = ₹40,000
• ₹12,00,001 to ₹16,00,000: 15% of ₹4,00,000 = ₹60,000
• ₹16,00,001 to ₹19,25,000: 20% of ₹3,25,000 = ₹65,000
Total Tax: ₹20,000 + ₹40,000 + ₹60,000 + ₹65,000 = ₹1,85,000
5. Impact on Taxpayers
The revised income tax slabs under the new tax regime are designed to reduce the tax burden on individuals, particularly those in the middle-income bracket. By increasing the tax rebate limit and adjusting the tax rates, taxpayers can retain a larger portion of their income, thereby enhancing their disposable income and promoting economic activity.
Conclusion
The revised income tax slabs under the new tax regime reflect the government’s commitment to easing the tax burden on the middle class and invigorating the economy. Taxpayers are encouraged to assess these changes to understand their implications and optimize their financial planning accordingly.
References
Here are some valuable resources to help you understand the revised income tax slabs under the new tax regime:
• Union Budget 2025-26 Summary: Provides an official summary of the budget, including detailed information on the new income tax slabs. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2098352
• Income Tax Calculator for FY 2025-26: An online tool to help you calculate your tax liability under the new regime. https://cleartax.in/paytax/taxcalculator
• Economic Times – Income Tax Budget 2025 Live Updates: Offers live updates and detailed explanations of the new tax slabs and their implications. https://economictimes.indiatimes.com/wealth/tax/income-tax-budget-2025-live-updates-tax-slab-fy25-26-new-old-tax-regime-standard-deduction-sec-80c-87a-rebate-nirmala-sitharaman-union-budget-announcements-1-february-2025/liveblog/117798057.cms
• Mint – Income Tax Budget 2025 Live Updates: Provides insights on how to save under the new tax regime and detailed information on the revised tax slabs. https://www.livemint.com/economy/budget-2025-key-highlights-live-updates-nirmala-sitharaman-agriculture-industry-capex-income-tax-1-february-2025-11738323616458.html
• Financial Express – New, Revised Income Tax Slab and Rates 2025-26: Details the updated tax slabs and rates introduced in the 2025 budget. https://www.financialexpress.com/budget/income-tax-budget-2025-live-updates-tax-relief-80c-deduction-tax-slab-rates-2025-26-nirmala-sitharaman-union-budget-tax-announcements-3733068/
These resources offer comprehensive information to help you navigate the changes in the income tax structure and understand how they may affect your financial planning.