A lot has been changing from 1 April 2025. Till now, no tax had to be paid on the annual income of Rs 7 lakh, but the income of from 1 April 2025 to 12 lakhs has become tax free. All this happened after the implementation of the new rules related to income tax. In fact, in the new financial year, the government has increased the income tax slab up to Rs 12 lakh and free tax. Now the question arises as to how the income tax slab will work after the implementation of the new Income Tax Act and what tax will be deducted on your salary, interest income and other income sources. On the first day of FY 2025-26, we will tell you about it in detail.
Income tax slab
Finance Minister Nirmala Sitharaman, in her budget speech, taxed the income of up to Rs 12 lakh in the new tax system. In such a situation, people who choose the new tax system want to know how tax slabs will be imposed in it, so let us tell you the most important things about the new tax system.
Income tax free of up to Rs 12 lakh
Above we have told you about the tax slab in the new tax system, but the government has made it clear in the budget that there will be no tax on income up to Rs 12 lakh. This will be applicable only when a person will choose the option of new tax system in the financial year 2025-26. This does not mean that you do not need to file income tax returns (ITR). Due to the exemption available under Section 87A of the Income Tax Act, 1961, no tax will be payable. If the annual premium Rs. ULIP income will be tax-free under Section 10 (10D) if it does not exceed Rs 5 lakh. 2.5 lakhs
Rebate under Section 87A
Now the new tax system will get a tax exemption of up to Rs 60,000, due to which the tax -free income limit has increased to Rs 12 lakh. At the same time, this exemption in the old tax system is only 12,500 rupees, due to which the income of up to only 5 lakh rupees remains tax free.
Changes in standard cuts
The standard deduction in the new tax system for salaried class has been reduced to Rs 5 lakh. 75,000, causing total tax-free income of Rs. With this, this amount will be 12.75 lakhs. In the old tax system it is still Rs. Was. Their number is 50,000.
Benefits of marginal relief
If a person’s taxable income is Rs. If it is Rs 12 lakh (up to Rs 12.70 lakh), then it will only have to pay extra tax to the extent when his income is less than Rs. Not less than 12 lakhs.
TDS relief for senior citizens
The limit of TDS deduction on FD has been increased from Rs 50,000 to Rs 1 lakh. This will benefit senior citizens who live on the interest earned from FD after retirement.
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