Budget 2025: Finance Minister Nirmala Sitharaman presented a budget of 2025-26 in Parliament on Saturday (1 February). In which a provision has been presented under which taxpayers with annual income up to Rs 12 lakh will not have to pay a single rupee tax. But people have many questions about this. For example, if someone’s annual salary is 13 lakh rupees, then how much tax will be levied on it? Along with this, the biggest dilemma is that if the income of up to Rs 12 lakh is tax free, then only 1 lakh rupees will have to be paid? So the answer is no.
One question in people’s mind is that if the annual salary is 13 lakh rupees, will 15 percent tax have to be paid? So the answer is ‘no’. Apart from this, the second question is that when the income of up to Rs 12 lakh is tax free, then why has the government given this slab system, 5 percent income tax on income of Rs 4 to 8 lakh and 10 percent income tax on income of Rs 10 lakh? 8 to 12 lakhs?
Answers to all these questions
If your annual salary is Rs 13 lakh and it is divided into 4 parts according to the tax slab. First 4 lakhs, second 4 lakhs, third 4 lakhs and finally the remaining one lakh rupees. There is no tax on the first four lakh rupees. Now the next part will be charged 5 percent tax on 4 to 8 lakh rupees, that is, 20 thousand rupees will be saved on it. Now 10 percent tax will be levied on an amount ranging from 8 to 12 lakh rupees. Which will be about 40 thousand rupees. Now the last one lakh rupees are left. This one lakh rupees will be charged 15 percent tax, which is 15 thousand rupees. Now if you add tax applied to the entire amount, then it will be 75 thousand rupees. This means that people with an annual income of Rs 13 lakh will have to pay 75 thousand rupees tax.
Who will benefit from tax exemption?
Many people are confused that this decision applies only to the employed people, although the government has clearly stated in the budget that you are employed, do some business or run a shop, if your annual income is Rs 12 lakh or less. So you will get an advantage of up to Rs 12 lakh. You do not need to pay income tax. An advantage for employed people is that along with this tax exemption, they will also get the benefit of standard deduction of Rs 75,000. For example, if the annual salary of a salaried person is Rs 12 lakh 75 thousand, then after getting a standard deduction of Rs 75 thousand, his salary will be Rs 12 lakh and he will not have to pay any tax.
