Vikrant Shekhawat : Feb 02, 2025, 06:20 PM
Union Budget 2025: A very big announcement has been made in the budget 2025 of India, which has awakened a new ray of hope in the mind of the common man. The government has made income up to Rs 12 lakh tax free. This decision is especially for those people whose annual income is up to Rs 12 lakh. Now if your annual income falls within this limit, then you can get relief from the burden of tax, but along with this the government has also laid down some conditions, which will be mandatory to follow.Shift to new tax regime is mandatoryThe most important aspect of this change is that the benefit of tax free income up to Rs 12 lakh will be available only under the new tax regime. This means that if you are still running your tax plan under the old tax regime, then you will not get the benefit of this relief. You will have to shift to the new tax regime to avail tax free income up to Rs 12 lakh.What are the rules related to the new tax regime?There are some special rules associated with the new tax regime, which will be important for you to know. First of all, the government has made the new tax regime the default tax system. This means that if you do not choose the old tax regime at the beginning of the financial year, you will automatically shift to the new tax regime.Another important thing is that once you shift to the new tax regime, in the future you cannot leave it and go back to the old tax regime. This means that if you chose the new tax regime for the benefit of tax free income, you will always have to pay tax accordingly.You will also get the benefit of standard deductionAnother important thing here is that your annual income of Rs 12 lakh will be tax free, but in reality your benefit will increase a little more. You will also get the benefit of standard deduction of Rs 75,000, which will make the total income of Rs 12.75 lakh tax free.Slab system in the new tax regimeIn the new tax regime, the government has made changes in the tax slabs, which can provide relief to the small and medium income groups. Now, income up to Rs 4 lakh is tax free, and after this the tax is determined in different slabs:
- 5% tax on Rs 4 to 8 lakh
- 10% tax on Rs 8 to 12 lakh
- 15% tax on Rs 12 to 16 lakh
- 20% tax on Rs 16 to 20 lakh
- 25% tax on Rs 20 to 24 lakh
- 30% tax on income above Rs 24 lakh