Revised Income Tax Slabs: How much money will you save in the new regime post Budget 2025? Here’s the math

Budget 2025 Income Tax Changes: Finance Minister Nirmala Sitharaman proposed sweeping tax reforms for the middle class in the Budget 2025. From zero tax on income of up to ₹12 lakh to cutting the income tax rates proposed in the new tax regime, Budget 2025 came as a much needed relief for the taxpayers. Budget 2025: Proposed income tax rates under the new regime Income Tax Rate 0-4 lakh rupees Nil 4-8 lakh rupees 5 per cent 8-12 lakh rupees 10 per cent 12-16 lakh rupees 15 per cent 16-20 lakh rupees 20 per cent 20- 24 lakh rupees 25 per cent Above 24 lakh rupees 30 per cent Taxpayers with a normal income of up to ₹12 lakh will have no tax liability due to a rebate and reduced slab rates. Tax liability as per old slabs Salary income ₹ 10 lakh ₹ 15 lakh ₹ 20 Lakh ₹ 25 Lakh ₹ 30 Lakh Less: Standard deduction 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 Net Taxable Salary 925,000.00 1,425,000.00 1,925,000.00 2,425,000.00 2,925,000.00 Tax 42,500.00 125,000.00 267,500.00 417,500.00 567,500.00 Less: Rebate under section 87A - - - - Surcharge - - - - Education Cess 1,700.00 5,000.00 10,700.00 16,700.00 22,700.00 Tax payable 44,200.00 130,000.00 278,200.00 434,200.00 590,200.00 Source: Taxmann Section 87A rebate Under the Budget 2025 proposal, effective from AY 2026-27, Section 87A has been revised for resident individuals under the default tax regime, increasing the rebate limit from ₹7 lakh to ₹12 lakh and the maximum rebate from ₹25,000 to ₹60,000. How much you will pay according to the proposed income tax rates Salary income ₹ 10 lakh ₹ 15 lakh ₹ 20 lakh ₹ 25 lakh ₹ 30 lakh Less: Standard deduction 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 Net Taxable Salary 925,000.00 1,425,000.00 1,925,000.00 2,425,000.00 2,925,000.00 Tax 32,500.00 93,750.00 185,000.00 307,500.00 457,500.00 Less: Rebate under section 87A 32,500.00 - - - - Surcharge - - - Education Cess - 3,750.00 7,400.00 12,300.00 18,300.00 Tax payable - 97,500.00 192,400.00 319,800.00 475,800.00 Source: Taxmann Other tax reliefs Threshold for TDS and TCS increased: Finance Minister Nirmala Sitharaman proposed to increase in the threshold for Tax Deduction at Source on rent from Rs2.40 lakh per annum to Rs6 lakh per annum in her Budget 2025 speech.