{"id":169711,"date":"2025-02-03T13:24:51","date_gmt":"2025-02-03T07:54:51","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=169711"},"modified":"2025-02-03T13:24:52","modified_gmt":"2025-02-03T07:54:52","slug":"income-tax-budget-2025-no-income-tax-for-upto-%e2%82%b912-lakh","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/income-tax-budget-2025-no-income-tax-for-upto-%e2%82%b912-lakh\/","title":{"rendered":"Income Tax Budget 2025: No income tax for upto \u20b912 lakh"},"content":{"rendered":"\n<p>In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced significant changes to the income tax system. These changes aim to provide relief to the middle class and boost economic growth. The proposed measures are expected to increase disposable income, enhance consumer spending, and contribute to India&#8217;s economic development. The key focus is on simplifying the tax structure and ensuring a more progressive tax environment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Income Tax Exemption for Up to \u20b912 Lakh Income<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Individuals earning up to \u20b912 lakh will not need to pay any income tax under the new tax regime.<\/strong><\/li>\n\n\n\n<li>For salaried individuals, the exemption limit is \u20b912.75 lakh, considering the standard deduction of \u20b975,000.<\/li>\n<\/ul>\n\n\n\n<p>Revised Tax Slabs<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The government has restructured tax slabs to reduce the burden on the middle class and promote savings, consumption, and investment.<\/li>\n\n\n\n<li>The following are the new income tax slabs.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Income<\/strong><\/td><td><strong>Tax%<\/strong><\/td><\/tr><tr><td>\u20b90-4 Lakh<\/td><td>No tax<\/td><\/tr><tr><td>\u20b94-8 Lakh<\/td><td>5% tax<\/td><\/tr><tr><td>\u20b98-12 Lakh<\/td><td>10% tax<\/td><\/tr><tr><td>\u20b912-16 Lakh<\/td><td>15% tax<\/td><\/tr><tr><td>\u20b916-20 Lakh<\/td><td>20% tax<\/td><\/tr><tr><td>\u20b920-24 Lakh<\/td><td>25% tax<\/td><\/tr><tr><td>Above \u20b924 Lakh<\/td><td>30% tax<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Tax Rebate for earning Up to \u20b912 Lakh<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For those earning up to \u20b912 lakh (excluding special rate income such as capital gains), a tax rebate is provided, resulting in zero tax liability.<\/li>\n<\/ul>\n\n\n\n<p>Impact on Various Income Groups<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A person earning \u20b912 lakh will benefit from a tax reduction of \u20b980,000.<\/li>\n\n\n\n<li>Someone earning \u20b918 lakh will see a tax benefit of \u20b970,000.<\/li>\n\n\n\n<li>A person earning \u20b925 lakh will receive a tax benefit of \u20b91,10,000.<\/li>\n<\/ul>\n\n\n\n<p>Key Advantages of the New Tax Regime<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Increased Disposable Income:<\/strong>\u00a0The changes are designed to leave more money in the hands of middle-class citizens, enabling increased consumption and savings.<\/li>\n\n\n\n<li><strong>Relief for Senior Citizens:<\/strong>\u00a0The tax structure includes measures such as an increase in the TCS threshold limit from \u20b97 lakh to \u20b910 lakh and a doubling of the TDS threshold for senior citizens.<\/li>\n<\/ul>\n\n\n\n<p>Overall Economic Impact<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>These changes are expected to significantly boost demand in sectors like FMCG, automobiles, and retail, driving economic growth.<\/li>\n\n\n\n<li>The tax reforms aim to increase consumer confidence, simplify the tax system, and foster a progressive tax environment.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Summary\/Static<\/strong><\/td><td><strong>Details<\/strong><\/td><\/tr><tr><td><strong>Why in the news?<\/strong><\/td><td>Income Tax Budget 2025: No income tax for upto \u20b912 lakh in new tax regime<\/td><\/tr><tr><td><strong>Income Tax Exemption<\/strong><\/td><td>Individuals earning up to \u20b912 lakh will pay no income tax (\u20b912.75 lakh for salaried individuals).<\/td><\/tr><tr><td><strong>Revised Tax Slabs<\/strong><\/td><td>\u20b90 \u2013 \u20b94 Lakh Nil<br>\u20b94 Lakh \u2013 \u20b98 Lakh 5%<br>\u20b98 Lakh \u2013 \u20b912 Lakh 10%<br>\u20b912 Lakh \u2013 \u20b916 Lakh 15%<br>\u20b916 Lakh \u2013 \u20b920 Lakh 20%<br>\u20b920 Lakh \u2013 \u20b924 Lakh 25%<\/td><\/tr><tr><td><strong>Tax Rebate for Earnings Up to \u20b912 Lakh<\/strong><\/td><td>Tax rebate for earnings up to \u20b912 lakh, resulting in zero tax liability.<\/td><\/tr><tr><td><strong>Impact on \u20b912 Lakh Income<\/strong><\/td><td>Tax benefit of \u20b980,000.<\/td><\/tr><tr><td><strong>Impact on \u20b918 Lakh Income<\/strong><\/td><td>Tax benefit of \u20b970,000.<\/td><\/tr><tr><td><strong>Impact on \u20b925 Lakh Income<\/strong><\/td><td>Tax benefit of \u20b91,10,000.<\/td><\/tr><tr><td><strong>Increased Disposable Income<\/strong><\/td><td>Designed to boost savings, consumption, and economic growth.<\/td><\/tr><tr><td><strong>Relief for Senior Citizens<\/strong><\/td><td>Increase in TCS threshold to \u20b910 lakh, doubling TDS threshold.<\/td><\/tr><tr><td><strong>Economic Sectors Affected<\/strong><\/td><td>Sectors like FMCG, automobiles, and retail to benefit from increased consumer spending.<\/td><\/tr><tr><td><strong>Overall Impact<\/strong><\/td><td>Boost to consumer confidence, simplified tax system, and progressive tax environment.<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced significant changes to the income tax system. These changes aim to provide relief to the middle class and boost economic growth. The proposed measures are expected to increase disposable income, enhance consumer spending, and contribute to India&#8217;s economic development. The key focus is on simplifying [&hellip;]<\/p>\n","protected":false},"author":419,"featured_media":169712,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5359],"tags":[72],"offerexpiration":[],"class_list":["post-169711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-february-2025","tag-union-budget-current-affairs"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/169711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/419"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=169711"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/169711\/revisions"}],"predecessor-version":[{"id":169713,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/169711\/revisions\/169713"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/169712"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=169711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=169711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=169711"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/offerexpiration?post=169711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}