INCOME TAX UNDER NEW TAX REGIME FY 2025-26

[MOHAN P]

Just for information;

The new income tax slabs have been announced by Finance Minister Nirmala Sitharaman in the Union Budget 2025.

The new income tax slabs under new tax regime are as follows:

Income tax slabs (In Rs)	Income tax rate (%)
Up to 4,00,000	0
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	24%
Above 24,00,001	30%

Apart from rejigging the income tax slabs, the government has increased the tax rebate available under Section 87A. 

Due to this, an individual having net taxable income up to Rs 12 lakh will not be required to pay any tax.

The new income tax laws will be effective from the new FY 2025-26, starting from April 1, 2025, provided the proposals are passed by Parliament as presented.

-ET

 

[MOHAN P]

Personal Income Tax - BUDGET 2025

Relevant part of Hon FM's speech is attached for  reference.

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[MOHAN P]

Relevant part of Budget 2025 presented by Hon.FM on 1st Feb'25 related to personal Income Tax is attached for reference 

On Sat, 1 Feb, 2025, 1:47 pm MOHAN P, <moha...@gmail.com> wrote:

[MOHAN P]

All India RBI Oers Pensioners Forum Tax Relief for Pensioners in the Budget 25  February 2, 2025 The Union Budget 2025 have brought good tax relief for pensioners across India. Union Budget 2025: The Finance Minister has announced a significant overhaul of the income tax structure under the new tax regime. What Sitharaman said:   A taxpayer with an income of Rs 12 lakh will now see a benefit of Rs 80,000 in tax savings, which accounts for 100% of the tax payable as per existing rates. A person earning Rs 18 lakh annually will benefit from a tax reduction of Rs 70,000, which is 30% of the tax payable under the previous system. For those with higher income, such as Rs 25 lakh, they will experience a tax benefit of Rs 1.10 lakh, reducing their tax payable by 25%. For Pensioners there shall be Zero Tax Liability for Income up to ₹12.75 Lakh per annum under Section 87A. Highlights: Income tax relief for pensioners Under the new tax regime, pensioners with an annual income up to ₹12,00,000 can get a rebate of ₹60,000 under section 87A. This means that pensioners with a total income of up to ₹12,75,000, including a standard deduction of ₹75,000, will not pay income tax. It will leave more money in the hands of pensioners. The relief encourages to invest and spend, while acknowledging the financial challenges faced by pensioners. As inflation continues to rise, this step will allow Pensioners to a stable retirement. Doubling the Tax Deduction Limit on Interest Income The tax deduction limit on interest income for senior citizens has been doubled from ₹50,000 to ₹1 lakh. Retirees will may now to keep a larger share of their money from savings schemes like fixed deposits. This move is also a financial relief to pensioners who rely on interest income for their livelihood B. Simplified TDS Rules with Higher Thresholds The annual rental income threshold for TDS has been raised from ₹2.4 lakh to ₹6 lakh . This means that many elderly people who depend on rental income will now be able to avoid TDS deductions, simplifying their tax filing process and reducing their compliance burden . Exemption from Taxes on National Savings Scheme (NSS) Withdrawals Starting from August 29, 2024, withdrawals from NSS accounts will no longer be subject to penalties, allowing senior citizens to access their funds without any extra costs or restrictions . This is particularly beneficial for those who hold accounts in schemes like NSS-87 and NSS-92, which no longer attract interest . Equal Treatment for NPS Vatsalya Accounts The budget also proposes equal treatment for NPS Vatsalya accounts with regular National Pension System (NPS) accounts. NPS Vatsalya accounts will be taxed in the same manner as regular National Pension System (NPS) accounts, within the overall limits.. This change is expected to help senior citizens build a more secure future by accumulating a retirement fund that will give regular income after retirement. Conclusion The Union Budget 2025 has made notable advancements in securing a stable retirement for pensioners in India. By doubling the tax deduction limit on interest income, simplifying TDS rules, and exempting NSS withdrawals, it tackles key financial concerns of senior citizens. These initiatives reflect the government's dedication to supporting the elderly and ensuring they enjoy their retirement with dignity and peace of mind.

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[Sukumaran Ramaraj]

Sir, 

Whether Rs 75000/- standard salary deduction still applicable  .

[vinayak behere]

Yes we are eligible for standard deduction of Rs.75000/- in addition to regular limit of Rs.12,00,000/-👍

Yahoo Mail: Search, Organize, Conquer

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[Chinnasamy Rajagopalan]

Yes std ded will be applicable and for total income of 12.75 u need not pay tax if u r a salaried employee

On Mon, 3 Feb, 2025, 09:46 Sukumaran Ramaraj, <sukuma...@gmail.com> wrote:

Sir, 

Whether Rs 75000/- standard salary deduction still applicable  .

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[Vvns Varaprasadrao]

Yes.

On Mon, Feb 3, 2025, 9:46 AM Sukumaran Ramaraj <sukuma...@gmail.com> wrote:

Sir, 

Whether Rs 75000/- standard salary deduction still applicable  .

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[Ramaswamy S]

For FY ending 2024-25, Standard deduction is Rs 50,000)/- only.  It is still available.

On Mon, 3 Feb 2025, 09:46 Sukumaran Ramaraj, <sukuma...@gmail.com> wrote:

Sir, 

Whether Rs 75000/- standard salary deduction still applicable  .

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[MOHAN P]

With effect from FY 2024-25, the standard deduction was increased from ₹50,000 to ₹75,000 under the new income tax regime.

Old scheme,yes, no change in Rs 50000/

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[Ashok Shrikhande]

Dear Sir

50000 for Old Regime and 75000 for New Regime for FY 2024-25.

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[Sridhar Mandyam]

Rs 75000/- if one opts new tax or else  Rs 50000/-

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