Budget 2025: Huge Tax Relief for Salaried Individuals!
The Indian government has announced a massive tax benefit under the new tax regime. If you earn up to ₹12.75 lakh annually, you could pay zero tax! But how is this possible when tax slabs show a 5% tax from ₹4 lakh? Let’s decode this tax-saving hack!
New Tax Slabs Under Budget 2025
The latest tax slabs under the new regime are:
How Section 87A Makes Your Tax Zero
Section 87A now offers an enhanced rebate of ₹60,000. Here’s how someone earning ₹12.75 lakh can pay zero tax:
- Gross Income: ₹12,75,000
- Standard Deduction: ₹75,000
- Taxable Income: ₹12,00,000
Tax Calculation:
Key Takeaways
- The rebate applies only under the new tax regime.
- If taxable income exceeds ₹12 lakh, the rebate is not available.
- Special income sources like capital gains do not qualify.
Did You Know?
The ₹60,000 rebate under Section 87A is the highest ever tax relief for salaried individuals in India!
