Overview of the 2025 Budget Address
During the Budget 2025 address, Finance Minister Nirmala Sitharaman unveiled significant modifications to the new tax regime. These changes are aimed at providing relief to taxpayers and simplifying the tax structure for individual earners.
Exemptions and Tax Slabs
One of the most noteworthy announcements was the exemption of income up to Rs 4 lakh from basic tax. This exemption can have a positive impact on taxpayers, especially for those earning lower to middle incomes. Additionally, it was revealed that individuals earning up to Rs 12.75 lakh annually will now be exempt from tax payments altogether.
Implications for Individual Taxpayers
The adjustments made to tax slabs and rebate benefits could encourage economic growth by enhancing disposable income for millions of taxpayers. With the financial burden lessening for those within the specified income brackets, many may find themselves with additional resources to invest or spend, which can benefit local economies.
As further details unfold about the Budget 2025 changes, taxpayers should stay informed to understand how these modifications will affect their financial situations in the coming fiscal year. Overall, the proposals signal a move towards a more favorable tax regime for a considerable portion of the population.
The revised tax slabs under the new regime are as follows:
| Income Range | Tax Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
