Massive Tax Savings in Budget 2025!
Budget 2025 has brought big tax relief for salaried individuals. If your annual income is up to ₹12.75 lakh, you can now pay zero tax under the new tax regime. Let’s break down this exciting tax-saving opportunity!
New Income Tax Slabs 2025
The revised tax rates under the new tax regime:
| Income Range (₹) | Tax Rate |
| 0 – 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
Section 87A Rebate: Your Tax-Saving Formula
With an enhanced ₹60,000 rebate under Section 87A, your tax liability drops to zero. Let’s see how:
- Annual Salary: ₹12,75,000
- Standard Deduction: ₹75,000
- Taxable Income: ₹12,00,000
Tax Breakdown:
| Income Bracket (₹) | Tax Rate | Tax Amount (₹) |
| 0 – 4,00,000 | Nil | 0 |
| 4,00,001 – 8,00,000 | 5% | 20,000 |
| 8,00,001 – 12,00,000 | 10% | 40,000 |
| Total Tax | 60,000 | |
| Rebate Under 87A | -60,000 | |
| Final Tax Payable | ₹0 |
Important Points to Remember
- Only for new tax regime – Old tax regime does not offer this benefit.
- Income above ₹12 lakh? – Rebate is not applicable.
- Excludes special income – Capital gains & lottery winnings are taxed separately.
Did You Know?
This new tax benefit can increase disposable income, boosting India’s economy through higher spending and savings!