Income up to Rs 4 lakh in new tax slab completely tax-free
Budget 2025: Union Finance Minister Nirmala Sitharaman presented the country’s budget in Parliament today. In this budget presented for the financial year 2025-26, it was announced to make tax free to the annual income of up to Rs 12 lakh by giving a huge relief to crores of middle class people of the country. From April 1, 2025, now people will not have to pay any kind of tax on annual income up to Rs 12 lakh. With a standard deduction of Rs 75,000, now employed people will not have to pay any tax on annual income of up to Rs 12.75 lakh. However, these changes are only for taxpayers who will choose the new tax regime.
Income up to Rs 4 lakh in new tax slab completely tax-free
The Finance Minister said that the tax exemption will save more money for the middle class people and at the same time they will be able to increase money in investment and also save. The Finance Minister also announced a change in different tax slabs. Under this, now there will be no tax on annual income of Rs 4 lakh. 5 percent on 4 to 8 lakh rupees, 10 percent on 8 to 12 lakh rupees, 15 percent on 12 lakh to 16 lakh rupees, 20 percent on 16 to 20 lakh rupees, 25 percent on Rs 20 lakh to 24 lakh rupees and 24 lakhs The annual income above the rupee will be taxed at 30 percent. Direct tax exemption will bring a burden of Rs 1 lakh crore to the government exchequer.
How much tax will have to be paid above 12 lakhs
But if you are a small businessman or businessman, then your income will be absolutely tax free up to Rs 12 lakh. At the same time, income of up to Rs 12.75 lakh of employed people will be free. However, this exemption will be given under Section 87A of Income Tax. Earlier, under this section, the government used to waive tax of Rs 25,000, which has now been increased to 60 thousand rupees. However, this concession will be available only up to 12 lakhs. More income will have to be taxed than this. Let’s assume that you are a businessman and your annual income is 13 lakh rupees, then you will have to pay a tax of 75 thousand rupees. Similarly, if you are employed and your annual income is Rs 13 lakh, then you have to pay a tax of Rs 63,750.
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