/viestories/media/media_files/2025/01/29/CKrfXm4eR0pU7hmgvF2k.png)
In the Union Budget 2025, Finance Minister Nirmala Sitharaman introduced significant changes to India's income tax structure, aiming to provide relief to the middle class and stimulate economic growth. The Union Budget 2025 introduces a new tax regime aimed at reducing the tax burden for middle-class families.
Latest Update on Budget 2025: Nirmala Sitharaman Says Will Introduce New Income Tax Bill Next Week
Here are the new income tax slabs as per the FM's announcements:
- 0-4 nil
- 4-8 – 5%
- 8-12 – 10%
- 12-16 -15%
- 16-20 -20%
- 20-24 – 25%
- Above – 30%
Union Budget 2025 Expectations
As news going on upcoming uncion budget can provide significant relief to salaried individuals and the middle class. As expected increasment in the tax-free income threshold.
Tax Incentives for Savings and Investments
Income | Existing tax rates | Proposed tax rates |
---|---|---|
₹5–10 lakh | 20% | 15% |
₹10–15 lakh | 30% | 25% |
Old and New Tax Regimes
In Budget 2025, the government could aim to harmonise the tax slabs and rates across both regimes to create more consistency. Will provide incentives for savings and investments.
How much income is tax-free currently in the new regime?
Union Budget 2024 Income Tax - Key Highlights
-
Revised Income Tax Slabs:
- The income tax slabs under the new tax regime were restructured to offer savings of up to ₹17,500 for taxpayers.
-
Increased Standard Deduction:
- The standard deduction for salaried individuals was increased by 50%, raising it to ₹75,000.
-
Comparison Between New and Old Tax Regimes:
- The new tax regime now offers lower tax rates compared to the old regime, making it more beneficial for many taxpayers.
These reforms are expected to influence the deductions and exemptions taxpayers can claim when filing their income tax returns in July 2025.
The government's intent behind these adjustments is to address the impact of inflation and boost consumption across the economy.
Know more about the Union Budget - Financial Year 2025-2026