An important modification to income tax for those making up to Rs. 12 lakhs is one among the improvements in the 2025 Budget. Because of a Rs. 60,000 refund, income up to Rs. 12 lakhs is exempt from income tax under the new tax system.
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| Old vs New Tax Regime Calculator Excel |
The following are the updated income tax slabs for the 2025–2026 fiscal year (assessment year 2026–2027):
Tax-free up to Rs. 4,00,000
Between 4,00,001 and 8,00,000 rupees: 5% tax
8,00,001 to 12,00,000 rupees: 10% tax
Between 12,00,001 and 16,00,000 rupees: 15% tax
Between 16,00,001 and 20,00,000 rupees: 20% tax
Between Rs. 20,001 to Rs. 24,00,000: 25% tax
30% tax on amounts over Rs. 24,00,000.
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| Old vs New Tax Regime Calculator Excel: for the 2025–2026 fiscal year |
Up to ₹1,14,400 in tax savings will be available to salaried
individuals under the proposed new income tax slabs under the new tax system in
Budget 2025. This savings is predicated on the taxpayer presumably just
claiming the ₹75,000 standard deduction under the new tax structure. On the
other hand, if a salaried individual applies for deductions on their employer's
National Pension Scheme (NPS) contribution, they can save even more tax.
Also Read: Budget 2025 Date & Time
