Bracketed joy for Hyderabad professionals over tax slabs

A woman buys fruits and vegetables at a supermarket in Hyderabad on Saturday.
| Photo Credit: NAGARA GOPAL

Hyderabad-based Ankit Priya and Bansari Trivedi, who will be tying the knot mid-2025, have more reasons to celebrate.

Minutes after the announcement of new tax slabs by Union Finance Minister Nirmala Sitharaman, they realised that they will be saving about ₹20,000-₹25,000 as a couple, which they aim to invest in the share market.

Working in the area of public policy research and advocacy with the Foundation for Democratic Reforms, Ankit said he makes between ₹50,000 and ₹70,000 per month.

“Last fiscal, I paid around ₹11,000 as income tax, which I will be exempt from in the next fiscal. I will now have more in-hand income and can use the surplus money for investing,” he said. His fiancé, working in the education sector, will save a little more.

Higher investments and savings are the norm for most Hyderabad citizens, as Ms. Sitharaman announced I-T exemption for annual income of up to ₹12 lakh and rejig in tax slabs.

While professionals earning an annual income of less than ₹12 lakh lauded the Budget and called it a big relief, those on the other side of the fence said that revised tax rates will only make minimal difference.

Chittala Sai Prasad, who works at NMDC and makes ₹50,000-₹80,000 per month, said that with the latest announcement, he will be able to save close to 15% of his annual income. “My annual tax savings will be ₹1,79,400, which is approximately 14.95% of my income. Since the new tax exemption limit is ₹12.8 lakh, I will no longer have to pay income tax on salary. This will positively impact my financial planning, allowing better savings and improve financial security,” he explained.

Shalini Reddy, who works with InTouch Cx, a BPO company in Madhapur, said she was in the monthly salary bracket of ₹70,000-₹90,000. “With the revised threshold, my tax liability has decreased, giving me more disposable income each month. These extra savings can be directed toward investments or personal expenses, making a real difference in my financial stability,” she said.

As per the tax slab rejig, for those earning over ₹12 lakh per annum, there will be nil tax for income up to ₹4 lakh, 5% for income between ₹4 and 8 lakh, 10% for ₹8-12 lakh, and 15% for ₹12-16 lakh. A 20% I-T will be levied on income between ₹16 and 20 lakh, 25% on ₹20-24 lakh and 30% on above ₹24 lakh per annum.

This has also encouraged many to shift to the New Regime. “While the Old Regime comes with loads of deductions, the NR has only simplified the process. Those having deductions to report for will continue to opt for the Old Regime. But I am keen to shift to the New Regime that cuts down the liability significantly,” said Ajith K, who works at a pharma database company and makes an annual income of about ₹7 lakh.