🔍 What’s Changing in the New Tax Regime?
Budget 2025 introduces revised income tax slabs, offering better tax savings for individuals. The biggest highlight is that taxpayers earning up to ₹12 lakh will now pay zero tax, thanks to revised slabs and rebates.
The new slabs under Section 115BAC(1A) are as follows:
| Total Income (₹ Lakhs) | Tax Rate |
|---|---|
| 0 – 4 | 0% |
| 4 – 8 | 5% |
| 8 – 12 | 10% |
| 12 – 16 | 15% |
| 16 – 20 | 20% |
| 20 – 24 | 25% |
| More than 24 | 30% |
For many taxpayers, these changes mean higher disposable income and lower tax liabilities compared to previous slabs.
🆕 What’s the Maximum Income for NIL Tax?
Under the new regime, individuals earning up to ₹12 lakh per year will not pay any income tax. This is due to a combination of rebates and revised slabs, making it a major relief for salaried individuals and middle-class taxpayers.
For example:
✅ An individual earning ₹12 lakh paid ₹80,000 in taxes under the previous structure.
✅ Now, with rebates and slab adjustments, their tax liability is zero.
This change ensures that more taxpayers retain their earnings and have higher savings for investments or daily expenses.
📢 Key Taxpayer Benefits (0-24 Lakhs)
The table below shows direct tax savings under the revised slabs:
| Total Income (₹ Lakhs) | Old Tax (₹) | New Tax (₹) | Total Benefit (₹) |
|---|---|---|---|
| 8 | 30,000 | 20,000 | 30,000 |
| 10 | 50,000 | 40,000 | 50,000 |
| 12 | 80,000 | 0 | 80,000 |
| 16 | 1,70,000 | 1,20,000 | 50,000 |
| 20 | 2,90,000 | 2,00,000 | 90,000 |
| 24 | 4,10,000 | 3,00,000 | 1,10,000 |
📌 Marginal Relief applies to those earning slightly above ₹12 lakh to prevent sudden tax jumps.
⚖️ Tax Changes & Standard Deduction in Budget 2025
📌 Standard Deduction: Salaried taxpayers continue to get ₹75,000 in deductions under the new regime. This means:
✅ Tax-free salary for incomes up to ₹12.75 lakh after standard deduction.
📌 Higher Savings: The government estimates that ₹1 lakh crore will now be available in the hands of taxpayers due to these changes.
📌 More Taxpayers Benefit: 8.75 crore ITR filers will see lower tax liability under this new structure.
🚀 What This Means for You
✔ Salaried individuals earning up to ₹12 lakh can save up to ₹80,000 in taxes.
✔ Higher income groups also benefit from lower slab rates.
✔ No action is required—this new tax regime is the default.
If you earn above ₹12 lakh, consider tax planning strategies to maximize benefits.
Final Thoughts
The Budget 2025 tax reforms aim to put more money back in taxpayers’ hands while simplifying compliance. With a higher NIL tax limit, better rebates, and revised slabs, the new regime is expected to boost spending power and encourage growth.