How much tax can salaried people save on income of 12.5 lakh, 15 lahks and 20 lakh? Know the complete math after the budget.

In Budget 2025, the central government has given great relief to the salaried people by changing the new tax system. This time the amendment made in the income tax slab will give a lot of benefit to the people earning Rs 12.5 lakh, 15 lakh, and 20 lakh. In the new system, maximum tax savings of up to Rs 1,14,400 is possible, provided that the taxpayer is claiming only a standard deduction of Rs 75,000. If a person invests in the National Pension System (NPS) through his employer's contribution, then his tax savings can be even more. Experts believe that these changes will provide great relief especially to the middle class and more people will adopt the new tax regime.
No tax on income up to Rs 12 lakh
According to tax experts of EY India, if a person's net taxable income is Rs 12 lakh, then he will no longer have to pay any tax. The reason for this is that the government has increased the tax exemption limit in the new tax slab. This will directly benefit lakhs of employed people and their in-hand salary will increase.
Those in the 30% tax bracket will get benefits up to Rs 1.14 lakh
At the same time, there is good news for those who were in the 30% tax bracket till now. Under the new system, people earning up to Rs 15 lakh and Rs 20 lakh annually will now be able to save up to Rs 1,14,400. Cess has also been included in this relief. EY India Tax Partner Shalini Jain told ET Bureau that the government wants more and more people to adopt the new tax system, which will not only provide relief to taxpayers but will also make the work of the Income Tax Department easier.
No change in the old system
In Budget 2025, the government has not made any changes in the old tax system, but has made the new system more attractive. Last year, 72% of taxpayers had adopted the new tax system, and this time it is expected to increase further.