Finance Minister Nirmala Sitharaman, in the Union Budget 2025 presentation on February 1, announced that no income tax would be levied on earnings up to ₹12 lakh.
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"Under the New Tax Regime, the government proposes zero tax on income up to ₹12 lakh per year," said Nirmala Sitharaman.
Here’s how new tax rates will impact your tax outgo:
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Upto ₹12 lakh
A taxpayer in the new regime with an income of ₹12 lakh will save ₹80,000 in tax, which equals 100% of the tax payable under existing rates.
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Upto ₹18 lakh
Individuals with an income of ₹18 lakh, will receive a tax benefit of ₹70,000, which is 30% of the tax payable under the existing rates.
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Upto ₹25 lakh
For an income of ₹25 lakh, a person will receive a tax benefit of ₹1,10,000, which amounts to 25% of the tax payable under the existing rates.