New Income Tax update (Budget 2025)
For Resident Individuals only
New Tax Regime:
| Total income | Rate of tax |
| Upto ` 4,00,000 | Nil |
| From ` 4,00,001 to ` 8,00,000 | 5 per cent |
| From ` 8,00,001 to ` 12,00,000 | 10 per cent |
| From ` 12,00,001 to ` 16,00,000 | 15 per cent |
| From ` 16,00,001 to ` 20,00,000 | 20 per cent |
| From ` 20,00,001 to ` 24,00,000 | 25 per cent |
| Above ` 24,00,000 | 30 per cent |
IMPORTANT POINTS:
- Rebate u/s 87A is increased in the manner that there is no tax payable by the taxpayers upto normal income of Rs.12 Lacs (Normal income is income other than special rate income such as capital gains).
- There will be no income tax payable upto income of 12 lakh under the new regime.
- There will be no Income tax up to Rs.12.75 lakh for salaried tax payers, due to standard deduction of Rs.75,000.
WHO WILL GET THE BENEFIT OF REBATE U/S 87A?
- Benefit of rebate under section 87A is applicable only to Resident Individuals. For others, slab rate will be followed.
BENEFITS TO TAXPAYERS
- A tax payer in the new regime with an income of 12 lakh will get a benefit of 80,000 in tax (which is 100% of tax payable as per existing rates).
- A person having income of 18 lakh will get a benefit of 70,000 in tax (30% of tax payable as per existing rates).
- A person with an income of 25 lakh gets a benefit of 1,10,000 (25% of his tax payable as per existing rates).
- There is no change proposed in the old tax regime.
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