Budget 2025: Understand the New Tax Rates and Payable Tax in Simple Terms
| Feb 1, 2025, 15:58 IST
Finance Minister Nirmala Sitharaman highlighted the pivotal role of democracy, demography, and demand in fueling India's economic growth. In a major announcement, she declared that individuals earning up to Rs 12 lakh annually will not have to pay income tax under the new tax regime. Additionally, for salaried employees, the exemption limit has been set at Rs 12.75 lakh, considering a standard deduction of Rs 75,000.
Comparison of New and Old Tax Slabs
The Finance Minister also introduced the revised tax slabs under the new regime. Below is a comparative overview of the new and old tax slabs.
New Tax Slabs (Budget 2025)
| Income Range | Tax Rate |
|---|---|
| ₹0 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% |
| ₹24 lakh and above | 30% |
Old Tax Slabs (Before Budget 2025)
| Income Range | Tax Rate |
| ₹3,00,000 and below | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% (Exemption up to ₹7 lakh under Section 87A) |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| ₹15,00,000 and above | 30% |
Tax Slabs Under the Old Tax Regime
| Income Range | Tax Rate |
| ₹2,50,000 and below | Nil |
| ₹2,50,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
