Finance Minister Nirmala Sitharaman has introduced a slew of measures which may considerably profit taxpayers within the Union Price range 2025, which she offered within the parliament on Saturday, February 1, 2025.
Union Finance Minister Nirmala Sitharaman with Union Minister of State for Finance Pankaj Chaudhary and different officers exterior the Finance Ministry forward of the presentation of the Union Price range 2025-26, in New Delhi, Saturday, Feb. 1, 2025.(PTI)
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5 revenue tax reduction measures in Price range 20251) No revenue tax for as much as ₹ ₹12 lakh every year
Probably the most distinguished tax reduction measure within the Price range 2025 is the exemption of revenue tax for all these incomes as much as ₹12 lakh yearly.
2) New tax slabs
The Price range 2025 introduces new tax slabs. Sitharaman stated, “I propose to revise tax rate structures as follows: 0 to ₹4 Lakhs – nil, ₹4 Lakhs to ₹8 Lakhs – 5%, ₹8 Lakhs to ₹12 Lakhs – 10%, ₹12 Lakhs to ₹16 Lakhs – 15%, ₹16 Lakhs to ₹20 Lakhs – 20%, ₹20 Lakhs to ₹24 Lakhs – 25% and above ₹24 Lakhs – 30%.”
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3) Tax advantages
A tax payer within the new regime with an revenue of ₹12 lakh will get a good thing about ₹80,000 in tax. An individual with revenue of ₹18 lakh will get a good thing about ₹70,000 in tax, and an individual with an revenue of ₹25 lakh will get a good thing about ₹1.10 lakh.
4) Normal deduction
Underneath the brand new tax regime, salaried staff in addition to pensioners get an ordinary deduction of ₹75,000, which raises the tax-free revenue restrict to ₹12.75 lakh for salaried people, contemplating the revised ₹12 lakh nil-tax threshold introduced within the finances.
Nonetheless, for these choosing the previous tax regime, the usual deduction stays unchanged at ₹50,000. The previous regime does nonetheless proceed to supply further exemptions and deductions, particularly these beneath Part 80C ( ₹1.5 lakh), Part 80D (medical insurance), in addition to HRA advantages.
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5) Rationalised TDS
The federal government additionally proposed to extend the annual threshold for tax deduction at supply (TDS) on lease to ₹6 lakh from the present restrict of ₹2.4 lakh.
This may scale back the variety of transactions that are liable to TDS and profit small taxpayers receiving small funds.