Income Tax Rule: Finance Minister Nirmala Sitharaman made many big announcements in Budget 2025. Out of these, a big announcement has also been made related to income tax. Actually, the government has increased the limit of tax free income of Rs 7 lakh per annum to Rs 12 lakh per annum. This move of the government has given relief to crores of taxpayers amid rising inflation. But now the question arises that how much tax will those earning 13 lakh or 15 lakh or more annually have to pay. Let’s know in the news below –
Finance Minister Nirmala Sitharaman presented the country’s general budget in February 2025. In this budget, the government had changed the income tax rules, giving a big relief to the middle class. Actually, the government has made annual income up to Rs 12 lakh tax free. That is, now the salaried people earning up to Rs 12 lakh annually will not have to pay even a single rupee tax. Let us tell you that earlier under the New Tax Regime, this limit was Rs 7 lakh, which has now been increased to Rs 12 lakh.
This new rule came into effect from April 1, tax exemption will be available –
Let us tell you that the new financial year has started, along with this there has been a change in the rules related to income tax. The standard deduction of Rs 75000 for salaried employees has been implemented from the new financial year 2026 i.e. April 1, 2025, salaried employees will get the benefit of this rule.
Now they will not have to pay a single rupee tax on earning Rs 12.75 lakh. Let us now know in detail in the news that if your annual income is 13, 14, 15, 20 lakh annually or even more, then how much tax will have to be paid.
How much tax will have to be paid by those who earn 1 lakh rupees per month –
If the monthly salary of a salaried employee is 1 lakh rupees, then according to that, the annual income is 12 lakh rupees, then in such a case he will not have to pay any income tax. On the other hand, if you earn 12 lakh 75 thousand rupees i.e. you earn 1 lakh 6 thousand 250 rupees monthly and you are a salaried employee, then also you will not have to pay a tax of even 1 rupee.
How much tax will be levied on income of 13 lakhs –
New Tax Regime (2024) –
- Zero (0) tax on income of 0 to 4 lakhs
- 4 to 8 lakhs: 5%
- 8 to 12 lakhs: 10%
- 12 to 16 lakhs: 15%
- 16 to 20 lakhs: 20%
- 20 to 24 lakhs: 25%
- 30% tax will be levied on annual income of more than Rs 24 lakh.
Now if we calculate the tax on income of 13 lakhs according to this, then…
After deducting standard deduction of Rs 75000 from 13, the total tax liability will be Rs 12.25 lakh.
- 0 to 4 0% = 0
- 4 to 8 5% = Rs 20,000
- 8 to 12 10% = Rs 40,000
- 12 to 16 15% = Rs 3,750
(Note – In the slab of 12 to 16 lakh, the income of those earning 13 lakh is reduced to just 25 thousand rupees, on which 15 percent income tax is applicable. According to this, the income tax on an income of 13 lakh is Rs 63,750, on which there is a provision of 4 percent cess separately, which amounts to Rs 2250. In this way, the total income tax is Rs 66,000. But due to marginal relief, tax will have to be paid on this only by Rs 25 thousand.)
Meaning of marginal relief – no tax liability should be more than the taxable income. If the tax liability is high, the Marginal Relief Rule will be applicable and then tax will have to be paid equal to the taxable income.
How much tax will be levied on an income of 15 lakhs –
Since Rs 15 lakh is more than the income tax exemption limit of the new tax regime of Rs 12 lakh, tax calculation on an annual income of Rs 15 lakh will be done as per the tax slab.
After deducting standard deduction….
1500000- 75000 = Rs 14,25000
- 0 to 4 0% = 0
- 4 to 8 5% = Rs 20,000
- 8 to 12 10% = Rs 40,000
- 12 to 16 15% = Rs 33,750
- Total tax = Rs 93,750
- Cess of 4 percent on tax = Rs 3,750
- Net taxable income = Rs 97,500
According to this calculation, employees earning Rs 15 lakh annually will have to pay tax of Rs 97,500 under the New Tax Regime 2025.
