New Tax Changes For FY year -2025-26

🧾 Major Personal Tax Announcements – Union Budget 2025

On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget 2025–26, introducing significant changes to personal income tax, particularly under the new tax regime.

1. ✅ Zero Tax for Income up to ₹12 Lakh

Individuals under the new tax regime with taxable income up to ₹12,00,000 will now get a full tax rebate under Section 87A, effectively paying zero tax. This aims to boost middle-class savings and consumption.

2. 📌 Standard Deduction Increased

The standard deduction has been increased from ₹50,000 to ₹75,000. With the rebate, salaried individuals earning up to ₹12.75 lakh will pay zero tax under the new regime.

3. 📊 Revised New Tax Regime Slabs (FY 2025–26)

Income Range (₹) Tax Rate
Up to 4,00,000Nil
4,00,001 – 8,00,0005%
8,00,001 – 12,00,00010%
12,00,001 – 16,00,00015%
16,00,001 – 20,00,00020%
20,00,001 – 24,00,00025%
Above 24,00,00030%

4. 🧮 No Changes in the Old Tax Regime

The old tax regime continues unchanged. Taxpayers can still choose between the old and new regimes based on what suits them better.

5. 🔍 Other Key Personal Tax Highlights

  • Senior Citizens: TDS exemption on interest income raised from ₹50,000 to ₹1,00,000.
  • Rent Income: TDS threshold raised from ₹2.4 lakh to ₹6 lakh annually.
  • NSS Withdrawals: Withdrawals from National Savings Scheme after August 29, 2024, are tax-exempt.
  • Updated Return Deadline: Time limit extended from 2 to 4 years for filing updated ITRs.
  • New Income Tax Bill: A simplified Income Tax Bill will be introduced to reduce compliance burden and enhance transparency.

Tax Calculator

Compare your tax under Old vs New Regime for FY 2025–26

Comments

Post a Comment

Popular posts from this blog

MUTUAL FUND RETURN CALCULATOR

Image
FinPixie Mutual Fund Calculator FinPixie Mutual Fund Calculator SIP Yearly SIP Lump Sum Monthly Investment (₹): Expected Annual Return (%): Time Period (Years): Annual Increase in Investment (%): Calculate SIP Yearly Investment (₹): Expected Annual Return (%): Time Period (Years): Annual Increase in Investment (%): Calculate Yearly SIP Lump Sum Amount (₹): Expected Annual Return (%): Time Period (Years): Calculate Lump Sum
Read more
Image
Anant Raj Ltd: Valuation, Landbank Economics & The Multi-Decade Data Center Opportunity Anant Raj Ltd: Valuation, Landbank Economics & The Multi-Decade Data Center Opportunity A concise, point-by-point institutional-style report (hybrid Real-Estate × Tech theme). Includes full arithmetic for NAV, DC steady-state cashflows (management & unit-econ based), and three PE-case outcomes. All numbers shown digit-by-digit. Introduction — When a Real Estate Developer Starts Looking Like a Tech Infrastructure Company Thesis: Anant Raj is a land-rich NCR developer pivoting into data-centers & sovereign cloud — a hybrid that combines long-duration land optionality with annuity-like DC cashflows. The stock today largely reflects land value; the DC/cloud business is, effectively, 'free' at current prices — if management executes. Executive data (user-provided & management): Market cap = ₹19,863 crore . Book value (consolidated equity / carrying values)...
Read more

Old vs New Tax Regime (FY 2024–25 )

Image
Old vs New Tax Regime in India – FY 2024–25 Old vs New Tax Regime in India: FY 2024–25 (AY 2025–26) The Indian tax system for FY 2024–25 offers two choices: the traditional Old Tax Regime (with deductions and exemptions) or the simplified New Tax Regime (lower rates but fewer breaks). The Finance Act 2023 made the New Regime the default from AY 2024–25 onwards. Under the Old Regime, taxpayers can claim many tax breaks (like 80C, 80D, HRA, etc.), whereas the New Regime provides lower slab rates but only limited deductions. Which works best depends on your income and investments. Income Tax Slabs Comparison Taxpayer Group Old Regime Slabs (FY24-25) New Regime Slabs (FY24-25) Up to ₹2.5 lakh Nil Up to ₹3 lakh Nil ₹2.5 – ₹5 lakh 5% on excess over ₹2.5L ₹5 – ₹10 lakh 20% on excess over ₹5L ₹3–7 lakh: 5%; ₹7–10 lakh: 10% ₹10 – ₹15 lakh 30% on excess over ₹10L ₹10–12 lakh: 15%; ₹12–15 lakh: 20% Above ₹15 lakh 30% Above ₹15 lakh: 30% Note: All rate...
Read more