New Income Tax Updates

New Income Tax Updates

• No income tax for earnings up to ₹12 lakh under the new regime.
• For salaried taxpayers, the limit increases to ₹12.75 lakh due to a standard deduction of ₹75,000.
• Tax rates have been revised to benefit all taxpayers, reducing the middle-class tax burden and increasing savings.

New Tax Slabs:

• ₹0 – ₹4 lakh: No tax
• ₹4 – ₹8 lakh: 5%
• ₹8 – ₹12 lakh: 10%
• ₹12 – ₹16 lakh: 15%
• ₹16 – ₹20 lakh: 20%
• ₹20 – ₹24 lakh: 25%
• Above ₹24 lakh: 30%

Tax Savings Examples:

• Income of ₹12 lakh: ₹80,000 tax savings (100% of tax removed).
• Income of ₹18 lakh: ₹70,000 tax savings (30% less tax).
• Income of ₹25 lakh: ₹1.1 lakh tax savings (25% less tax).

Overall Impact:

• ₹1 lakh crore in direct tax revenue and ₹2,600 crore in indirect taxes will be forgone.
• More money in taxpayers’ hands will boost spending, saving, and investment.