Finance Minister Nirmala Sitaraman has announced a revised income tax slab for FY 2024-25, offering significant relief to taxpayers. The new regime provides concessional tax rates and liberal slabs, with no deductions allowed except for specified sections like 80JJAA, 80M, and standard deduction.
New Income Tax Slabs for FY 2024-25
- Up to ₹4 lakh: 0% tax
- ₹4-8 lakh: 5% tax
- ₹8-12 lakh: 10% tax
- ₹12-16 lakh: 15% tax
- ₹16-20 lakh: 20% tax
- ₹20-24 lakh: 25% tax
- Above ₹24 lakh: 30% tax
The revised tax slabs are expected to put more money in people’s hands without compromising the fiscal deficit. According to Adhil Shetty, CEO of (link unavailable), the change in the 30% slab marks a 60% adjustment, providing substantial relief to taxpayers.
Under the proposed 2025 tax regime, someone earning ₹25 lakh annually will pay ₹3.43 lakh in total tax, compared to ₹4.57 lakh under the 2024 regime. This translates to 5% more money in hand and a monthly saving of around ₹9,500.
The government has also released FAQs to clarify the changes and benefits of the new income tax structure. The income tax reforms introduced in the budget are among the biggest in the last decade, aiming to simplify and rationalize the tax system.
