Price range 2025: How is the brand new revenue tax slab totally different from outdated model?
Finance minister Nirmala Sitharaman will current the Union Price range on February 1. The salaried class will count on extra revenue tax reliefs within the price range bulletins.
Final yr, Sitharaman in her price range speech proposed a brand new tax construction underneath the brand new revenue tax regime. The brand new construction got here into impact from April 1, 2024.
Right here is the brand new revenue tax construction introduced by the Finance minister:-
| ANNUAL INCOME | TAX |
|---|---|
| 0- ₹3 LAKH | NIL |
| ₹3-7 LAKH | 5% of quantity exceeding ₹3,00,000 |
| ₹7-10 LAKH | ₹20,000 + 10% of the quantity exceeding ₹7,00,000 |
| ₹10-12 LAKH | ₹50,000 + 15% of the quantity exceeding ₹10,00,000 |
| ₹12-15 LAKH | ₹80,000 + 20% of the quantity exceeding ₹12,00,000 |
| ABOVE ₹15 LAKH | ₹1,40,000 + 30% of the quantity exceeding ₹15,00,000 |
“ The usual deduction for salaried workers is proposed to be elevated from ₹50,000/- to ₹75,000/-. Equally, deduction on household pension for pensioners is proposed to be enhanced from ₹ 15,000/- to ₹ 25,000/-. It will present reduction to about 4 crore salaried people and pensioners,” the finance minister mentioned in her price range speech.
Union Price range 2025 Full Protection
In 2024, Nirmala Sitharaman revised the tax construction within the new revenue tax slab, introduced a yr in the past. Here is what it regarded like:-
| ANNUAL INCOME | TAX DEDUCTION |
|---|---|
| UPTO ₹3 LAKH | NIL |
| ₹3-6 LAKH | 5% of the quantity exceeding ₹3,00,000 |
| ₹6-9 LAKH | ₹15,000 + 10% of the quantity exceeding ₹6,00,000 |
| ₹9-12 LAKH | ₹45,000 + 15% of the quantity exceeding ₹9,00,000 |
| ₹12-15 LAKH | ₹90,000 + 20% of the quantity exceeding ₹12,00,000 |
| ABOVE ₹15 LAKH | ₹1,50,000 + 30% of the quantity exceeding ₹15,00,000 |
“At the moment, these with revenue as much as ₹5 lakh don’t pay any revenue tax in each outdated and new tax regimes. I suggest to extend the rebate restrict to ₹7 lakh within the new tax regime. Thus, individuals within the new tax regime, with revenue as much as ₹7 lakh is not going to should pay any tax,” the minister introduced in her price range speech on February 1, 2023.
ALSO READ: Union Price range: 25 key phrases you have to know earlier than Nirmala Sitharaman’s speech
Easy methods to calculate revenue tax?
You possibly can calculate your revenue tax utilizing the Tax Calculator on the Revenue Tax division’s official web site. Listed below are the steps you need to comply with:-
Step 1: Go to the e-filing dwelling web page.
Step 2: It’s worthwhile to Choose Fast Hyperlinks and select Tax calculator.
ALSO READ: Prime 10 revenue tax modifications from 2024 to look out for whereas submitting ITR in 2025
Step 3: Click on the hyperlink to go to the Revenue and Tax Calculator web page. There are two choices: Primary Calculator and Superior Calculator. The Primary Calculator tab is chosen by Default.
Step 4: Within the Primary Calculator tab, you might want to enter the main points just like the Evaluation Yr, taxpayer class, age, residential standing, whole annual revenue and whole deductions. The tax calculation in line with the main points entered by you’ll seem within the Tax Abstract part.
Step 5: Within the Superior Calculator tab, you might want to enter extra particulars together with Most well-liked tax regime, AY, taxpayer class, age, residential standing, due date and precise date of submission of return.
