Budget 2025 and you: How it impacts your money next financial year

Finance Minister Nirmala Sitharaman presented the Union Budget 2025 today, unveiling a series of key reforms that will enthuse taxpayers, simplify taxation, boost foreign investment and enhance financial inclusion. Among the major highlights were major tax revisions that include nil tax for incomes up to Rs 12 lakh, a new Income Tax Bill set to be introduced next week, rationalised TDS/TCS limits and expanded benefits for homeowners. Here's a breakdown of the biggest Budget 2025 announcements and what they mean for you at a personal level. Zero tax for income up to Rs 12 lakh You don't have to pay any income tax if your annual income is Rs 12.75 lakh (up to Rs 12 lakh and an additional Rs 75,000 standard deduction). Previously, this limit under the new tax regime was Rs 7 lakh (Rs 7.75 lakh with standard deductions). Revised tax slabs The table below compares the new structure with the existing one. New tax regime (existing) Tax rate New tax regime (revised) Tax rate Up to 3 lakh 0% Up to 4 lakh 0% Rs 3-7 lakh 5% Rs 4-8 lakh 5% Rs 7-10 lakh 10% Rs 8-12 lakh 10% Rs 10-12 lakh 15% Rs 12-16 lakh 15% Rs 12-15 lakh 20% Rs 16-20 lakh 20% Above 15 lakh