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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!
Rupesh Jadhav is the founder of Rupesh Financial Expert, a finance-focused website dedicated to helping Indian investors make informed financial decisions. He writes about mutual funds, SIP investments, government schemes, retirement planning, and personal finance. His goal is to simplify complex financial concepts through research-based and educational content.
