Introduction to Budget 2025 Income Tax Changes

In a significant move to alleviate the tax burden on the salaried middle class, FM Nirmala Sitharaman announced sweeping changes to the income tax slabs and rates under the new income tax regime for FY 2025-26. The most notable change is the introduction of a zero-tax slab for individuals earning up to Rs 12 lakh annually.

Detailed Analysis of New Income Tax Slabs

Under the new regime, salaried taxpayers with an income up to Rs 12.75 lakh, including the Rs 75,000 standard deduction, will have a zero tax liability. This move is expected to provide substantial savings for middle-class taxpayers, with benefits ranging from Rs 52,000 to Rs 1.1 lakh depending on the income bracket.

Comparative Analysis: New vs Old Tax Regime

The article provides a detailed comparison between the new and old tax regimes, highlighting the benefits of switching to the new tax slabs. It also includes a comprehensive table showing the tax savings at various income levels, making it easier for taxpayers to understand the impact of these changes on their finances.

Conclusion and Future Implications

The Budget 2025 income tax changes are a boon for the middle class, offering significant savings and simplifying the tax structure. Taxpayers are encouraged to assess their tax liabilities under both regimes to make informed decisions that could lead to substantial financial benefits.