Budget 2025: Big Tax Savings! See How Much You Can Save Under the New Slabs
The Indian government’s Union Budget 2025 has introduced significant changes to the income tax structure, aiming to reduce the tax burden for a broad range of taxpayers. Here’s a simplified breakdown of the new tax slabs and the potential savings:
The tax slabs, rates and savings shown in this article are those announced in Union Budget 2025 and are for illustration only. Tax provisions have changed since. Please check the current rules at incometax.gov.in before acting on these figures.
Revised Tax Slabs (Budget 2025):
Who Benefits:
1. Income up to ₹12 lakh: No tax liability due to the revised structure and standard deductions.
2. Income between ₹12 lakh and ₹24 lakh: Tax reduction of approximately 25-31%.
3. Income above ₹24 lakh: Tax savings of up to ₹1.1 lakh.
Estimated Tax Savings:
| Total Income (₹) | Tax Under New Regime 2025 (₹) | Tax Under Old Regime 2025 (₹) | Savings (₹) |
|---|---|---|---|
| 5 lakh | 0 | 0 | 0 |
| 10 lakh | 0 | 50,000 | 50,000 |
| 12 lakh | 0 | 80,000 | 80,000 |
| 15 lakh | 1,05,000 | 1,40,000 | 35,000 |
| 20 lakh | 2,00,000 | 2,90,000 | 90,000 |
| 24 lakh | 3,00,000 | 4,10,000 | 1,10,000 |
| 30 lakh | 4,80,000 | 5,90,000 | 1,10,000 |
| 40 lakh | 7,80,000 | 8,90,000 | 1,10,000 |
Key Takeaway:
The updated tax regime offers substantial relief, especially for those earning up to ₹24 lakh annually. With zero tax for incomes up to ₹12 lakh and significant savings for higher earners, many may find the new structure more beneficial. It’s advisable to review your tax planning strategies to maximize benefits under these changes.
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