Budget 2025: Tax slab has been changed in budget 2025-26, which will save more money in the hands of the common man than before. At the same time, the government can now introduce a new Income Tax Bill on 6 February to simplify the tax process. The aim of the new Income Tax Bill is to bring widespread improvement in the current Income Tax Act and reduce the Income Tax Bill from the current estimated 6 lakh words to 3 lakh words.
According to a report, steps can be taken to increase the tax base in the new Income Tax Drawing Bill, which has reduced due to the implementation of the new income tax slab. Finance Minister Nirmala Sitharaman said in the press conference after the budget that more than one crore people will directly benefit from the change in the slab of the new income tax system. Sitharaman said that increasing the income tax limit from Rs 7 lakh to Rs 12 lakh will save more money in the hands of more than one crore people.
According to the proposed new slab in Budget 2025-26, people with income up to Rs 12 lakh will not have to pay any income tax. Comparing the existing tax rates and the proposed new rates in the financial year 2025-26, he said that people earning 8 lakh rupees will save more than Rs 30,000 in pockets as their tax liability has become zero.
No income tax will be payable on income up to Rs 12 lakh under the new system (except for special income like capital gains, whose average income will be Rs 1 lakh per month). Due to the standard deduction of Rs 75,000, this limit for salaried taxpayers will increase to Rs 12.75 lakh.
