Budget 2025: Taxpayers to save Rs 35,000-Rs 1.1 lakh after tax slab revision

This Union Budget has been a Diwali come early for taxpayers. Today, the Indian government proposed a revised new tax regime that aims to reduce the tax burden by 25 per cent to 100 per cent for incomes up to Rs 24 lakh.

Here are the revised tax slabs:

Who will benefit?

• Taxpayers earning below Rs 12 lakh (or Rs 12.75 lakh for salaried individuals) will now pay zero tax due to the revised tax structure and standard deductions.
  
• Those earning between Rs 12 lakh and Rs 24 lakh (or Rs 24.75 lakh for salaried individuals) will pay 25-31 per cent less tax .
  
• Individuals with an annual income of above Rs 24 lakh will save Rs 1.1 lakh in taxes under the proposed regime.

Estimated tax saving across different income levels

What happens to the old tax regime?

Its future is up in the air. We'll get more clarity next week, once the new income tax bill is presented in the Parliament.

Biggest takeaway

The revised new tax regime presents a significant tax relief for a large segment of taxpayers.

With zero tax liability for those earning below Rs 12 lakh and substantial tax savings of up to Rs 1.1 lakh for high earners, the proposed changes encourage individuals to opt for the simplified structure.

If you fall within the affected income range, consider assessing your tax planning strategy to maximise savings under the new structure. Stay updated on further developments as the government finalises the tax reforms in the upcoming budget.

To stay informed about the latest tax reforms and personal finance strategies, follow Value Research for expert insights on tax planning, investments, and wealth management.

Also read:
How Budget 2025 impacts your finances next financial year
Why are SBI Life, HDFC Life and other private insurers in the red?