Budget 2025: How to get full exemption on income of 12 lakhs in the new tax regime, understand the answers to all the questions here
Union Finance Minister Nirmala Sitharaman presented the first full budget of Modi’s third term. The biggest thing in this (New Tax Regime 2025) budget was to give income tax exemption to those with an annual income of 12 lakhs. The announcement of this exemption spread a wave of happiness in the middle class. Read how income up to 12 lakhs can be made tax free and how can its benefits be availed?
The government has announced a cut in income tax rates in the budget. Currently, under this system started in 2020, 5 to 20 percent tax has to be paid on annual income of Rs 15 lakh. At the same time, if the income is more than Rs 15 lakh, then there is a provision to pay tax at the rate of 30 percent. In the budget presented on Saturday, the Finance Minister has announced to make an annual income of Rs 12 lakh tax free.
What is the New Tax Regime 2025 System?
Under the new tax system in the budget, there is a provision of ‘concessional tax’ i.e. concessional rates of tax and liberal slabs i.e. liberal rates. However, there is no provision for any reduction in the new system.
What are the new slabs in the new system proposed in Budget 2025?
Up to Rs 4 lakh – 0% tax
4-8 lakh – 5% tax
8-12 lakh – 10% tax
12-16 lakh – 15% tax
16-20 lakh – 20% tax
20-24 lakh – 25% tax
More than Rs 24 lakh – 30% tax
What were the tax slabs in the earlier new system?
Up to Rs 3 lakh – no tax
3-7 lakh – 5% tax
7-10 lakh – 10% tax
10-12 lakh – 15% tax
12-15 lakh – 20% tax
More than Rs 15 lakh – 30% tax
How to get exemption on income of Rs 12.75 lakh?
Taxpayers get tax relief under section 87A of Income Tax. This is Rs 12,500 for the old tax regime. Whereas for the new tax regime it is Rs 60,000. In this way, if seen, if the tax liability in the new tax regime is less than Rs 60 thousand, then there is no need to pay even a single rupee tax.
On how much income is income tax zero for taxpayers?
In the new proposed tax rate, individual taxpayers will have to pay zero tax i.e. no tax on an amount of Rs 12 lakh.
What steps will have to be taken for tax exemption?
Nothing will have to be done to get tax exemption for income up to Rs 12 lakh. Only income tax return will have to be filed. Apart from this, no other step will be required
What benefit will a person with an income of 12 lakhs get from the new rates?
Earlier, any person whose annual income was Rs 12 lakhs had to pay a tax of Rs 80,000 on an income of Rs 12 lakhs. Now, under the new provision, no tax will be levied.
Is standard deduction available on salary in the New Tax Regime 2025 System?
In the new regime, there is a provision of standard deduction of Rs 75,000 for tax payers. In such a situation, those whose income is Rs 12 lakh 75 thousand or less will not have to pay any tax.
Is there a provision for standard deduction in the old regime as well?
There is a provision for standard deduction of Rs 50,000 in the old regime.
Which taxpayers will benefit from the new tax rate?
Recently, i.e. in the financial year 2024-25, about 8 crore 75 lakh people have filed income tax returns. All such people who were paying tax in the new tax regime. They will get the benefit of change in tax rate and slab.