Income Tax and TDS: Union Finance Minister Nirmala Sitharaman is presenting the general budget for 2025-26. Giving a big gift to the middle class, she has announced the removal of tax on income up to Rs 12 lakh. At the same time, giving relief to the elderly, she has now talked about tax deduction up to Rs 1 lakh, earlier this limit was Rs 50,000.
While announcing this, he said that changes will be made in the TDS limit so that uniformity can be brought in it. The TDS exemption limit for senior citizens will be increased from Rs 50,000 to Rs 1 lakh. The TDS exemption limit on rental income will be increased to Rs 6 lakh. However, provisions for high TDS will be implemented in non-PAN related cases. Also, the limit for filing updated returns is being increased from two years to four years.
There is no tax up to 12 lakhs
Apart from this, Finance Minister Nirmala Sitharaman, as expected, gave a big relief to the middle class by announcing that annual income up to Rs 12 lakh will be completely tax free. This exemption has been given in the new income tax system. Salaried people will now not have to pay any tax on annual income up to Rs 12.75 lakh.
Rationalising TDS / TCS
👉 Limit for tax deduction on interest for senior citizens to be doubled from ₹50,000 to ₹1 lakh
👉 Annual limit for TDS on rent to be increased from ₹2.40 lakh to ₹6 lakh
👉Threshold to collect tax at source on remittances under RBI’s Liberalized… pic.twitter.com/HpvSf7EzGA
— Ministry of Finance (@FinMinIndia) February 1, 2025
What will the tax slab be like now?
The Finance Minister said that due to tax exemption, middle class people will have more money for consumption. Along with this, investment and savings will also increase. Along with this, the Finance Minister also proposed changes in different tax slabs. Under this, now there will be no tax on annual income of four lakh rupees. Five percent tax will be levied on four to eight lakh rupees, 10 percent on eight to 12 lakh rupees, 15 percent on 12 lakh to 16 lakh rupees, 20 percent on 16 to 20 lakh rupees, 25 percent on 20 lakh to 24 lakh rupees and 30 percent tax will be levied on annual income above 24 lakh rupees.
Related Articles:-
- Income Tax Slab Change : Entire tax slab has changed in the new regime – check new tax slab
- Income Tax Time limit: Finance Minister announced the extension of revised income tax time limit to 4 years – Key Details inside
- Budget 2025 Live: Big relief..! No tax up to 12 lakhs, big announcement – Key Details inside
- PM Dhan Dhany Yojana: Announcement of PM Dhan Dhany Yojana for farmers
- New scheme for women: Finance Minister announced a new scheme for 5 lakh women of these categories
