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ITR Filing: Finance Minister Nirmala Sitharaman announced in Budget 2025 that there will be no income tax on income up to Rs 12 lakh. Apart from this, salaried taxpayers will be entitled to additional benefit of no tax on the basis of standard deduction of Rs 75,000.
Let us tell you that these changes will come into effect from April 1, 2025, which means that when you file your tax return in July 2025 or if you file late or in June (if you file early), then these changes will not be applicable. In July 2025, taxpayers will file tax returns for the financial year 2024-25 in which the provisions of the Finance Act 2024 will be applicable.
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Let us tell you that in the Budget 2024 announced on July 23 last year, Finance Minister Nirmala Sitharaman announced new tax slab rates and also increased the limit of standard deduction under the new tax system. These changes will naturally take effect when you file your tax return in July 2025. Let us tell you what these changes are like….
Filing ITR 2025: These changes will apply
- In Budget 2024, the standard deduction for salaried employees was increased from Rs 50,000 to Rs 75,000.
- There is no income tax up to Rs 3 lakh. For income between Rs 3-7 lakh, the tax liability is 5 per cent.
- A rebate of Rs 25,000 is available under Income Tax Section 87A.
- Above Rs 7 lakh, salaried taxpayers can avail standard deduction up to Rs 75,000. At the same time, a person with a gross income of Rs 7.75 lakh is not required to pay any income tax this year.
- These slabs (no tax up to Rs 3 lakh), exemptions (up to Rs 25,000) and standard deduction (Rs 75) will be applicable if you are going with the new tax regime which is also the default regime.
In the old tax regime – which you have to choose – the tax slabs are as follows:
- 0-2.5 Lakh : Nil
- 2.5 to 5 Lakh: 5% above 2.5 lakh
- 5 lakh to 10 lakh: Rs 12.5 + 20% above 5 lakh
- Above Rs 10 lakh: Rs 1,12,500 + 30 per cent above Rs 10 lakh
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