New Delhi: From April 1, 2025, the new financial year will begin and the new income tax rules will come into effect which were announced in the Union Budget 2025-26 by Finance Minister Nirmala Sitharaman. The new income tax rules, including new income tax slabs will come into effect from the first day of the new fiscal year. However, the government did not announce any change in the income tax slabs under the old tax regime.
The new Tax Regime was introduced in the financial year 2020-21. Since then the government made changes only in the new tax regime.
The companies will be asking their employees to choose between the new and old tax regimes for the new FY 2025-26. As per the Budget announcement, the basic exemption limit was hiked from Rs 3 lakh to Rs 4 lakh in the new tax regime. This means the people having a total income below Rs 4 lakh in the next fiscal year, will not be required to file income tax returns.
From April 1, 2025, the taxpayers will pay zero tax if their net taxable income does not cross Rs 12 lakh. An individual will be entitled to get a tax rebate of Rs 60,000 Under Section 87A.
In a much-needed tax relief for the middle class, the Finance Minister Sitharaman had announced “There will be no income tax payable upto income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs 12.75 lakh for salaried tax payers, due to standard deduction of Rs 75,000.”
While announcing the new tax slabs, the minister emphasised that the new structure will substantially reduce the taxes of the middle class, which would enable people to save more and also boost household consumption, and investment.
New Tax structure from April 1, 2025
| 0-4 lakh rupees | Nil |
| 4-8 lakh rupees | 5 per cent |
| 8-12 lakh rupees | 10 per cent |
| 12-16 lakh rupees | 15 per cent |
| 16-20 lakh rupees | 20 per cent |
| 20- 24 lakh rupees | 25 per cent |
| Above 24 lakh rupees | 30 per cent |
While presenting Budget 2025-26, Finance Minister Nirmala Sitharaman announced that there will be no Income Tax on annual income upto Rs 12 lakh under New Tax Regime. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
