Income Tax New Rule: The government has implemented the new income tax slabs from April 1, 2025. Under the new tax regime, not only has there been a huge reduction in the slabs, but huge tax exemptions have also been given directly.
A separate exemption of Rs 75,000 will be given to employed people. People who earn money in any way, be it a job, business or profession, know very well that every year the month of April brings many changes for them. However, this time the month of April is going to be something special, because the big changes that are going to happen this time from April, they may never have happened before.
This is also very special for those who earn money because the matter is directly related to people’s money. The government has made many big announcements for the middle class and employed people, which will come into effect from 1 April 2025.
Finance Minister Nirmala Sitharaman had announced in the budget presented on February 1 that along with the change in the income tax slab, tax exemptions would also be given. The Finance Minister had not made any changes in the old tax system, but in the new system, along with changing the tax slabs, she had also increased the scope of tax exemptions. These new income tax rates will be applicable from the new financial year starting from April 1. Therefore, it is important for every person who earns money to know what kind of tax exemption he will get and how much money he will save.
What is the new income tax slab (new provision)?
- Zero tax on income up to Rs 4 lakh
- 5% tax on income between Rs 4 lakh and Rs 8 lakh
- 10% tax on income between Rs 8 lakh and Rs 12 lakh
- 15% tax on earnings from 12 to 16
- 20% tax on income between Rs 16 lakh and Rs 20 lakh
- 25% tax on income between Rs 20 lakh and Rs 24 lakh
- 30% tax will be levied on income above Rs 24 lakh
Bumper tax exemption
The government has not only given relief to employers and the middle class by reducing the tax slab, but has also significantly expanded the scope of tax exemption. From the new financial year starting from April 1, no tax will be payable on annual income up to Rs 12 lakh. Under the new income tax regime, the government has completely exempted income up to Rs 12 lakh from the tax net. This means that even a person earning Rs 1 lakh per month will not have to pay any tax, whether he has made any investment or not.
75 thousand more exemption for employed people
The relief given by the government in income tax does not end here, but more relief will be given to employed people. The Finance Minister has said that an additional tax exemption of Rs 75 thousand will be given to employed people in the form of standard deduction. This means that the direct tax exemption for employed people will be Rs 12.75 lakh. This tax exemption will be available without any investment.
TDS will also be exempted.
The scope of tax deduction at source on investments like FD has also been doubled. This exemption is for senior citizens, which was Rs 50,000 till now. Now it has been increased to Rs 1 lakh. This means that if senior citizens get interest of up to Rs 1 lakh annually on FD, then this amount will be completely out of the scope of tax. Not only this, the scope of tax exemption on income from house rent has also been increased. Now no tax will be levied on taking annual rent of Rs 6 lakh.
