In the Budget 2025-26, Union Finance Minister Nirmala Sitharaman has proposed to overhaul direct taxes.
From the current threshold of taxable income of Rs 7.5 lakh, Sitharaman has proposed to raise it to Rs 12 lakh.
With the standard deduction of Rs 75,000 the effective minimum taxable income of salaried individuals is Rs 12.75 lakhs.
Under the new income tax structure, the slabs would look like this:
Before the Budget 2025-26, the tax slabs were as follows in the new income tax regime:
Up to Rs 3 lakh will pay 0 per cent tax.Rs 3-7 lakh will pay 5 per cent income tax.Rs 7-10 lakh will pay 10 per cent income tax.Rs 10-12 lakh will pay 15 per cent income tax.Rs 12-15 lakh will pay 20 per cent income tax.Over Rs 15 lakh will have 30 per cent income tax.
Sitharaman’s decision has come at a time when taxpayers as well as analysts were demanding income tax relief for several months owing to rising cost of living.
Link to article –
Union Budget 2025: Sitharaman makes New Tax Regime more attractive, here are the new tax slabs
