Income Tax News: While presenting the budget, Finance Minister Nirmala Sitharaman has given a big relief to the salaried class. Under this, now there will be no income tax on income up to Rs 13.05 lakh. Let’s understand the whole math…
Finance Minister Nirmala Sitharaman has given a big relief to the salaried class in the Union Budget 2025. While presenting the country’s budget on Saturday, the Finance Minister announced that now there will be no income tax on income up to Rs 12 lakh. This limit increases to Rs 12.75 lakh after including standard deduction. However, the thing to note here is that now there will be no tax on annual income up to Rs 13.05 lakh, not 12.75 lakh. So let us tell you the complete calculation…
Salaried people with annual income up to Rs 13.05 lakh can avail income tax exemption. They will get a marginal relief of about Rs 30,000 along with a standard deduction of Rs 75,000.
How to get the benefit of tax free income up to Rs 13.05 lakh?
According to the report of Money Control, CA Abhishek Aneja told that the government gives marginal relief so that taxpayers do not have to bear a sudden burden due to the change in tax slab. Currently, this marginal relief is Rs 30,000. This means that after the salary of Rs 12 lakh is tax free, if you add the standard deduction of Rs 75,000 to it, then the total becomes Rs 12.75 lakh. If you add the margin relief of Rs 30,000 to it, then you will not have to pay any tax on Rs 13.05 lakh.
How much tax has been reduced?
After the implementation of new tax slabs in Budget 2025, know here how much tax has been reduced in different income brackets…
- Up to Rs 12 lakh – Earlier one had to pay Rs 80,000. Now there will be no tax.
- Up to Rs 13.05 lakh – Earlier the tax was Rs 80,000. Now there is no tax.
- Up to Rs 16 lakh – Earlier one had to pay Rs 1.70 lakh. Now, tax will be Rs 1.20 lakh.
- Up to Rs 18 lakh – Earlier the tax was Rs 2.30 lakh. Now the tax will be Rs 1.60 lakh. Saving of Rs 70,000 in tax.
- Up to Rs 20 lakh – Now Rs 2 lakh will be taxed. Earlier it was Rs 2.90 lakh. Saving of Rs 90,000 in tax.
- Up to Rs 24 lakh – Now Rs 3 lakh will be taxed. Earlier it was Rs 4.10 lakh. Saving of Rs 1.10 lakh in tax.
- Up to Rs 50 lakh – Now Rs 10.80 lakh will be taxed. Earlier it was Rs 11.90 lakh. Saving of Rs 1.10 lakh in tax.
Step taken to provide relief to the middle class
This step of the government has been taken to provide economic relief to the middle class and to promote consumption, savings and investment. The new tax system will provide more disposable income to the salaried class, which is also likely to increase demand in the market.
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