Budget 2025 Tax Slab: Key Tax Slab Changes For Middle Class From New Regime! Check Updated Details Here!

The budget in 2025 aims to make major changes in income tax plates, especially to benefit the middle class.

At present, the characteristics of the new tax system are that the income of up to 300,000 rupees is not taxed, and the revenue between 300,000 and 700,000 rupees is 5 %.

You are watching: Budget 2025 Tax Slab: Key Tax Slab Changes For Middle Class From New Regime! Check Updated Details Here!

Interest rates continued to increase, with income of more than 150,000 rupees. In contrast, the old tax system allows various deductions and exemptions to make it more complicated to some taxpayers, but it may be beneficial.

This article will discuss the expected changes in the tax board under the two systems. We will explore how these adjustments are designed to reduce the economic burden of middle -class taxpayers and enhance their disposable income.

View | Nirmala Sitharaman biography: Birth, age, age, family, education, political occupation, recognition and more information about Indian Finance Ministers

New tax system: the latest income tax plate (2025-26 fiscal year)

The latest income tax plates under the new tax system of 2025-26 After a revised bracket, it aims to reduce the tax burden of secondary income. This is a simplified failure:

Scope of income (围)	tax rate(%)
Up to 300,000	zero
30000001-700,000	5
7,00001-10,000,000	10
10,00001-1200,000	15
12,00001-15,000,000	20
More than 15,00,000	30

Key highlights:

• The revenue of up to 300,000 rupees is not tax.
• The stent of the 30-70,000 rupees attracted 5 % of the tax, which is consistent with the efforts of increasing disposable income.
• The higher tablets (7-1 million rupees and 100,000 to 120,000 rupees) are 10 % and 15 % interest rates.
• The highest tablet (higher than 1.5 million rupees) remains 30 %.

Income tax board: a key deduction proposed according to the new tax system

• Section 80C: Increase the deduction limit to 2 million rupees, such as life insurance premiums and donations to employee provident funds.
• Section 80D: The deduction of health insurance premiums is expanded to 100,000 rupees of themselves and their families to solve the rise in medical expenses.
• 80TTB: Allows the elderly to deduct the interest income of up to 50,000 rupees from banks and post office deposits.
• Section 10 (13A): Make paid taxpayers deduct the rent costs according to the new tax system.

BDO India’s global employer service, tax and regulatory service partner Deepashree Shetty said that these amendments will improve the simplicity and tax efficiency of the new tax system.

How does the new tax system compare with the old tax system?

The comparison between India’s new tax system and the old tax system shows that there are significant differences between tax rates and structures, especially in the 2024-25 fiscal year.

See more : Optical Illusion Eye Test: How Fast can you Locate the Odd One Out?

Overview of tax rates

New tax system (2024-25 fiscal year)

Maximum 300,000 rupees: zero

300,000 rupees-700,000 rupees: 5 %

700,000 rupees-100,000 rupees: 10 %

1 million rupees-1200,000 rupees: 15 %

1.2 million rupees-1.5 million rupees: 20 %

More than 1.5 million rupees: 30 %

Old tax system (2024-25 fiscal year)

Up to 250,000 rupees: zero

2.5 million rupees-500,000 rupees: 5 %

500,000 rupees-1 million rupees: 20 %

More than 1 million rupees: 30 %

Key difference

• Basic exemption restrictions: The new system will increase the basic exemption limit from 250,000 rupees to 300,000 rupees, so that more people do not pay taxes at low income levels.
• Tax rate structure: The scope of the new regime is low, especially in terms of income below 1.5 million rupees, the tax rate is low.
• For example, under the new regime, the revenue between 5 % and 700,000 rupees is 5 %, and the revenue of the old system with a unified interest rate of 20 % is between 500,000 and 1 million rupees.
• Deducting and exemption: A major disadvantage of the new system is to eliminate most deductions and exemptions (such as Article 80C, HRA, etc.), which can be used in the old regime.
• This makes the new regime simpler but may be beneficial to taxpayers who are substantially deducted.
• Surversion: Under the new system, the highest surcharge rate has dropped to 25 %, while the old system is up to 37 %.

Source: https://dinhtienhoang.edu.vn
Category: Optical Illusion