Amid the relief to middle class by announcing tax-exemption for incomes upto ₹12 lakh, the central government also revised the tax slabs. The new tax slabs were announced by Union Finance Minister Nirmala Sitharaman, presenting the Union Budget 2025 on Saturday (February 1, 2025).
Here are the new tax slabs:
No tax for income up to ₹4 lakh per annum. For income between ₹4 lakh and ₹8 lakh, 5% tax will be applicable and between ₹8 lakh and ₹12 lakh, 10% will be applicable. The government also fixed 15% tax for income between ₹12 lakh and and ₹16 lakh.
Tax rates of 20% will be applicable for income between ₹16 lakh and ₹20 lakh and 25% will be applicable for income between ₹20 lakh and ₹24 lakh. For income above ₹24 lakh, 30% tax is applicable.
No tax slab will apply for annual income of up to ₹12 lakh (₹12.75 lakh for salaried tax payers with standard deduction of ₹75,000) under new tax regime.
Published – February 01, 2025 04:37 pm IST