Jan 20, 2025 03:18 PM IST
Union Budget 2025: Last year, Sitharaman in her budget speech proposed a new tax structure under the new income tax regime.
Finance minister Nirmala Sitharaman will present the Union Budget on February 1. The salaried class will expect more income tax reliefs in the budget announcements.
Last year, Sitharaman in her budget speech proposed a new tax structure under the new income tax regime. The new structure came into effect from April 1, 2024.
Here is the new income tax structure announced by the Finance minister:-
| ANNUAL INCOME | TAX |
|---|---|
| 0- ₹3 LAKH | NIL |
| ₹3-7 LAKH | 5% of amount exceeding ₹3,00,000 |
| ₹7-10 LAKH | ₹20,000 + 10% of the amount exceeding ₹7,00,000 |
| ₹10-12 LAKH | ₹50,000 + 15% of the amount exceeding ₹10,00,000 |
| ₹12-15 LAKH | ₹80,000 + 20% of the amount exceeding ₹12,00,000 |
| ABOVE ₹15 LAKH | ₹1,40,000 + 30% of the amount exceeding ₹15,00,000 |
“ The standard deduction for salaried employees is proposed to be increased from ₹50,000/- to ₹75,000/-. Similarly, deduction on family pension for pensioners is proposed to be enhanced from ₹ 15,000/- to ₹ 25,000/-. This will provide relief to about four crore salaried individuals and pensioners,” the finance minister said in her budget speech.
Union Budget 2025 Full Coverage
In 2024, Nirmala Sitharaman revised the tax structure in the new income tax slab, announced a year ago. Here’s what it looked like:-
| ANNUAL INCOME | TAX DEDUCTION |
|---|---|
| UPTO ₹3 LAKH | NIL |
| ₹3-6 LAKH | 5% of the amount exceeding ₹3,00,000 |
| ₹6-9 LAKH | ₹15,000 + 10% of the amount exceeding ₹6,00,000 |
| ₹9-12 LAKH | ₹45,000 + 15% of the amount exceeding ₹9,00,000 |
| ₹12-15 LAKH | ₹90,000 + 20% of the amount exceeding ₹12,00,000 |
| ABOVE ₹15 LAKH | ₹1,50,000 + 30% of the amount exceeding ₹15,00,000 |
“Currently, those with income up to ₹5 lakh do not pay any income tax in both old and new tax regimes. I propose to increase the rebate limit to ₹7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to ₹7 lakh will not have to pay any tax,” the minister announced in her budget speech on February 1, 2023.
ALSO READ: Union Budget: 25 key terms you must know before Nirmala Sitharaman’s speech
How to calculate income tax?
You can calculate your income tax using the Tax Calculator on the Income Tax department’s official website. Here are the steps you should follow:-
Step 1: Go to the e-filing home page.
Step 2: You need to Select Quick Links and choose Tax calculator.
ALSO READ: Top 10 income tax changes from 2024 to look out for while filing ITR in 2025
Step 3: Click the link to go to the Income and Tax Calculator page. There are two options: Basic Calculator and Advanced Calculator. The Basic Calculator tab is selected by Default.
Step 4: In the Basic Calculator tab, you need to enter the details like the Assessment Year, taxpayer category, age, residential status, total annual income and total deductions. The tax calculation according to the details entered by you will appear in the Tax Summary section.
Step 5: In the Advanced Calculator tab, you need to enter more details including Preferred tax regime, AY, taxpayer category, age, residential status, due date and actual date of submission of return.
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