Income Tax: Salary of Rs 12 lakh is tax free, will you get the benefit; this is the complete calculation..
Union Finance Minister Nirmala Sitharaman has presented the general budget, in which the government has given a big relief to the taxpayers. Along with this, she also talked about presenting the new tax law next week. In the budget, the government has not imposed any tax on income up to 12 lakhs. This means that if the standard deduction of 75 thousand is added, then those earning up to 12.75 lakhs annually will not have to pay any tax. The government will increase the limit of tax-free income. This was being discussed even before the budget. The central government has also given indications of this. The Finance Minister has exempted those earning 12.75 lakhs from tax, but that is under the new tax regime. If you adopt the old tax regime, then you will not get any benefit. Let us understand this in detail.
The Finance Minister has made a total of 12.75 lakhs tax free under the new tax regime in the budget. They will not have to pay even a single rupee of tax. But if a person has opted for the old tax regime, then he will not get any benefit from the announcement made in the budget. Because the government did not announce anything about the old tax regime. The Finance Minister did not even touch it.
Whatever tax exemption will be given will be given to the taxpayers who have adopted the new tax regime. However, it was speculated that the government would make some announcements to promote the new tax regime, but there was little hope that no decision would be taken on the old tax regime. In the budget, the government has given tax exemption in the new tax regime to promote consumption and it is expected that the government will promote the new tax regime in the new tax law as well.
Tax slab under the new tax regime
If we talk about the tax slab under the new tax regime, then the government has fixed a 0 percent tax on income up to 4 lakhs, a 5 percent tax on those earning 4 to 8 lakhs, and a 10 percent tax on those earning 8 to 12 lakhs. At the same time, a 15 percent income tax has been fixed for those earning 12 to 16 lakhs annually, 20 percent for those earning 16 to 20 lakhs, and 25 percent for those earning 20 to 24 lakhs. But you should not get confused by seeing this. You will not have to pay tax from your pocket up to an income of 12.75 lakhs, because the government will give a rebate on tax till here. The tax slabs have been fixed for less than 12 lakhs. Based on them, the tax will be fixed on income above 12.75 lakhs.
Old tax regime system
Taxpayers with old tax regimes are empty handed in Budget 2025. The government has not given them tax exemption. Nor has anything been announced about them. Under the old tax system, there is no income tax on annual income up to Rs 2,50,000. At the same time, 5% tax applies between Rs 2,50,001 to Rs 5,00,000. Along with this, 20% tax is levied on Rs 5,00,001 to Rs 10,00,000 and 30% tax is levied on more than Rs 10,00,000 i.e. Rs 10,00,001 and above. The government has neither made any changes in these slabs nor given any tax exemption.
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