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Budget 2025: Finance Minister Nirmala Sitharaman has given a big relief to the taxpayers while presenting the first full budget of the third consecutive term and the third consecutive term of the Modi government. Those who earn Rs 12 lakh annually under the New Tax Regime will not have to pay any income tax. This will reduce the tax burden from the middle class, which will bring more money to spend in their hands. This will help in saving domestic consumption and increasing investment.
No tax on income up to Rs 12.75 lakh
Finance Minister Sitharaman has given great relief to salary pensioners through his budget. People who earn up to Rs 12 lakh annually will not have to pay any tax in the new FY 2025-26. That is, income of up to Rs 12 lakh has been done. It is a matter of relief that taxpayers will continue to get the benefit of standard deduction annually in New Regime. That is, such taxpayers whose annual income is 12.75 lakh rupees will not have to pay any tax.
Big change in tax slab in New Tax Regime
There has been a big change in the tax slab in the New Income Tax Regime. No tax will have to be paid on income up to Rs 4 lakh. 5 percent on income up to Rs 4 – 8 lakh, 10 per cent on income up to Rs 8 – 12 lakh, 15 per cent on income up to Rs 12 -16 lakh, 20 per cent on income up to Rs 16 – 20 lakh, 20 – 20 – 25 percent on income up to Rs 24 lakh and 30 percent tax on income of more than Rs 24 lakh will have to be paid. Due to this change in tax slab, those with income from 8 lakh to 25 lakh rupees will be saved from 30000 to 1,10,000 rupees. Also, taxpayers whose income is Rs 12 lakh annually will save tax of Rs 80000.
Tax deduction limit double for senior cities
The Finance Minister has given a big gift to Senior Citizens. For senior citizens, TDS Limit has been announced to increase interest on interest. The TDS limit for Senior Cities has been increased from the current Rs 50000 to Rs 1 lakh. That is, the limit of the TDS that was cut on interest up to Rs 50000 on FD in banks has been increased to Rs 1 lakh.
TDS limit becomes 6 lakh on rent
The Finance Minister has increased the TDS limit on rent from Rs 2.40 lakh to Rs 6 lakh annually. This will reduce the number of transactions for TDS. Also, TDS liabilities of such taxpayers who receive small payments will decrease. The audit and direct tax partner of Creetum Advisory, Devn Gupta, commented on the tax related to the tax in the budget of the Finance Minister, saying, the budget 2025 is a budget to speed up India’s development with tax reforms. Removing TCS on Goods’s cells will reduce cash related concerns. The government has also encouraged the Vishwas Yojana from the dispute to settle tax disputes, which will benefit about 33000 taxpayers. The new tax system has been given a big relief in tax for individuals earning up to ₹ 12 lakhs annually and business. This reform will attract foreign investment with setting up India as a global startup center and will easier the relief of economic growth ahead of the Is of Doing Business.
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