Budget 2025: In the budget, Finance Minister Nirmala Sitamaraman has given a big gift to millions of income tax payers of the country. The Finance Minister has announced to increase the income tax limit to Rs 12 lakh. This will save taxpayers and will bring more money to spend on hand. This is also good news for the Indian economy. Increased demand will accelerate the Indian economy which will also work to boost the Indian market.
Rate of tax slab in new income tax
- No tax will have to be paid on income of 12 lakhs.
- Zero tax will have to be paid on income of 0 to 4 lakhs
- Tax will have to be paid at the rate of 5% on an annual income of 4 to 8 lakhs.
- Tax will have to be paid at the rate of 10% on an annual income of 8 to 12 lakh rupees.
- Tax will have to be paid at the rate of 15% on annual income of Rs 12 to 16 lakhs.
- Tax will have to be paid at the rate of 20% on an annual income of Rs 16 to 20 lakhs.
- 8 to 12 lakh rupees came annually but 10% tax would have to be paid.
- 30% tax will have to be paid on income of more than Rs 24 lakh.
- Income tax will have to be paid at the rate of 25% on annual income of 20 to 24 lakhs
Standard deduction limit was 75 thousand rupees
The limit of standard deduction for people with job professionals has been increased to Rs 75 thousand in the budget. Till now this limit was 50 thousand rupees. After this increase, people with employee will not have to pay any tax on income up to Rs 12.75 lakh.
This is how income tax limit increased
2005: ₹ 1 Lakh
2012: ₹ 2 Lakh
2014: ₹ 2.5 Lakh
2019: ₹ 5 Lakh
2023: ₹ 7 lakh
2025: ₹ 12 Lakh
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