'Full Tax Rebate For Income Up To Rs 12 Lakhs' : Finance Minister Announces New Tax Rates In Union Budget 2025

Union Finance Minister Nirmala Sitaraman in her budget speech announced proposals which effectively mean that there is no income tax payable for normal salaried income up to Rs 12 lakhs per annum.She said that for taxpayers up to Rs12 lakhs of normal income, other than special rate incomes such as capital gains, tax rebate is being provided in such a manner that there is no tax payable by them."I am happy to announce that there will be no income tax payable up to income of 12 lakh rupees," the Finance Minister said in the Lok Sabha."So average income of 1 lakh per month, other than the special rate income from capital gains, under the new regime, this limit will be 12.75 lakhs for salaried taxpayers due to the standard deduction of 75,000 rupees," she said.New slabsFM announced the new slab which she said will reduce the tax burden of taxpayers, leaving more money in their hands and boosting household consumption.New slabs are as follows :Rs 0 to 4 lakh - NILRs 4 to 8 lakh - 5%Rs 8 to 12 lakh - 10%Rs 12 - 16 lakh - 15%Rs 16 - 20 lakh - 20%Rs 20 - 24 lakh - 25%Rs 24 lakh plus - 30%. "To taxpayers up to 12 lakhs of normal income, other than special rate incomes such as capital gains, tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them," she said.The Finance Minister illustrated with some examples as follows :A tax payer, in the new regime, with an income of 12 lakh rupees, will get a benefit of 80,000 rupees in tax which is 100% of tax payable as per the existing rates.A person having income of 18 lakh rupees will get a benefit of 70,000 rupees in tax which is 30% of tax payable as per existing rates.A person with an income of Rs 25 lakhs will get a benefit of Rs 1.10 lakh rupees that is 25% of his tax payable as per the existing rates. Also Read - New Income Tax Bill Will Be Introduced Next Week : Finance MinisterNo TCS On Sale Of Goods; Changes To TDS/TCS Regime : Union Budget 2025 ProposalsWelfare Measures For Gig Workers, Jan Viswhwas Bill 2.0 : Union Budget 2025 ProposalsThe budget speech can be read here.Finance Bill 2025 can be read here.

'Full Tax Rebate For Income Up To Rs 12 Lakhs' : Finance Minister Announces New Tax Rates In Union Budget 2025

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