Budget 2025 has received a big relief for salary class taxpayers. Now no income tax will have to be paid on the annual income of up to Rs 13.05 lakh.

Finance Minister Nirmala Sitharaman has increased the tax-free income limit from Rs 12 lakh to Rs 13.05 lakh in the budget, giving great relief to taxpayers.

According to CA Abhishek Aneja, tax-free income increases from 12.75 lakhs to Rs 13.05 lakh on adding marginal relief and standard deduction.

How will you get benefit?
No tax on income up to Rs 12 lakh
Standard deduction of Rs 75,000
Marginal Relief of Rs 30,000
Total Tax-Free Income: Rs 13.05 Lakh

That is, employees with salary up to Rs 13.05 lakh will no longer have to pay any tax!

Tax reduction on more than Rs 13 lakh income too!

Under the new tax system, more than 13 lakh salary people will also get huge tax exemption.

CA Abhishek Aneja said that due to changes in marginal relief tax slab, the taxpayers do not suddenly increase the taxpayers.

Example:
If your salary is Rs 12.75 lakhs, then income tax-free is after standard deduction (₹ 75,000).
But if your income becomes Rs 13.05 lakh, then only Rs 30,000 will be taxed and not on the whole income.

How much tax decreased according to salary? Know the full list!

Now see how much relief in income tax under New Tax Regimm, see:

Meaning, there has also been a huge discount in tax on salary ranging from Rs 16 lakh to Rs 50 lakh.

New Tax Slab (New Tax Regime-FY 2025-26)

In Budget 2025, the new tax slab has been made even more simple:

Now income up to 12 lakhs is completely tax-free
No tax will be paid up to 13.05 lakhs
A discount of Rs 1.10 lakh in tax on income up to 50 lakhs