Income Tax Updates – Budget 2025
- No income tax for earnings up to ₹12 lakh, benefiting the middle class.
- Salaried taxpayers get an extra benefit, raising the limit to ₹12.75 lakh due to a ₹75,000 standard deduction.
- The revised tax structure aims to reduce the tax burden, increase savings, and boost spending.
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:
- ₹12 lakh income: ₹80,000 tax savings (100% tax-free).
- ₹18 lakh income: ₹70,000 savings (30% less tax).
- ₹25 lakh income: ₹1.1 lakh savings (25% less tax).
Impact on Economy:
- ₹1 lakh crore in direct taxes and ₹2,600 crore in indirect taxes will be forgone.
- More disposable income will drive growth, increase household savings, and strengthen India’s economy.
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