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In her eighth budget presentation under the BJP-led government, Union Finance Minister Nirmala Sitharaman introduced major changes in personal income tax, offering significant relief to middle-class taxpayers.
The Budget 2025 introduces a revised tax structure, including a full tax rebate for individuals earning up to ₹12 lakh annually.
Revised Tax Slabs for FY 2025-26 (New Tax Regime)
The new income tax regime features updated tax slabs aimed at reducing the tax burden on salaried individuals. Below is the revised tax structure:
Annual Income Tax Rate
₹0 – 4 lakh NIL
₹4 – 8 lakh 5%
₹8 – 12 lakh 10%
₹12 – 16 lakh 15%
₹16 – 20 lakh 20%
₹20 – 24 lakh 25%
Above ₹24 lakh 30%
Key Tax Reforms in Budget 2025
Tax Exemption for Incomes up to ₹12 Lakh: Individuals earning up to ₹12 lakh per year will pay no income tax, benefiting a large number of salaried professionals.
Higher Standard Deduction: The standard deduction has been raised from ₹50,000 to ₹75,000, allowing more savings for taxpayers.
Simplified Tax Slabs: The adjustments in tax rates are designed to reduce the financial burden on middle-income groups while maintaining progressive taxation.
How to Calculate Your Income Tax Online?
To estimate your tax liability for FY 2025-26, you can use an online income tax calculator.
Visit the Financial Express Income Tax Calculator.
Select the financial year (FY 2025-26) and your age bracket, then click Next.
Enter your income details as per your salary or earnings.
Input your deductions and exemptions, if applicable.
Click Next, and the tool will automatically calculate your tax liability.
Using an online calculator simplifies tax computation and helps you plan your finances efficiently under the new tax regime.
