Union Finance Minister Nirmala Sitharaman holds a digital tablet enclosed in a traditional ‘bahi-khata’ style pouch containing the paperless ‘Union Budget 2025-26’, outside the Finance Ministry on February 1, 2025.
| Photo Credit: The Hindu
Amid the relief to middle class by announcing tax-exemption for incomes upto ₹12 lakhthe central government also revised the tax slabs. The new tax slabs were announced by Union Finance Minister Nirmala Sitharaman, presenting the Union Budget 2025 on Saturday (February 1, 2025).
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Here are the new tax slabs:
No tax for income up to ₹4 lakh per annum. For income between ₹4 lakh and ₹8 lakh, 5% tax will be applicable and between ₹8 lakh and ₹12 lakh, 10% will be applicable. The government also fixed 15% tax for income between ₹12 lakh and and ₹16 lakh.
Tax rates of 20% will be applicable for income between ₹16 lakh and ₹20 lakh and 25% will be applicable for income between ₹20 lakh and ₹24 lakh. For income above ₹24 lakh, 30% tax is applicable.
No tax slab will apply for annual income of up to ₹12 lakh (₹12.75 lakh for salaried tax payers with standard deduction of ₹75,000) under new tax regime.
Published – February 01, 2025 04:37 pm IST
