New Tax Regime 2025
New Tax Regime 2025: Income Tax Slabs, Calculator, and Budget Highlights
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Introduction
The Union Budget 2025 has introduced significant changes to the income tax structure, particularly under the New Tax Regime 2025. Whether you're a salaried individual, a business owner, or a freelancer, understanding the new tax slabs, deductions, and rebates is crucial for effective financial planning. In this blog, we’ll break down the income tax slabs for AY 2025-26, compare the old and new tax regimes, and provide a step-by-step guide to using the income tax calculator 2025.
Key Highlights of the New Tax Regime 2025
- No Tax for Income Up to ₹12 Lakhs: Under the new regime, individuals with an annual income of up to ₹12 lakhs are eligible for a full tax rebate.
- Revised Tax Slabs: The tax slabs have been restructured to provide relief to middle-income groups. Here’s a quick look at the new tax slabs for AY 2025-26:
| Income Range (₹) | Tax Rate (%) |
|---|---|
| 0 - 3,00,000 | 0% |
| 3,00,001 - 6,00,000 | 5% |
| 6,00,001 - 9,00,000 | 10% |
| 9,00,001 - 12,00,000 | 15% |
| 12,00,001 - 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Note: These rates are applicable under the new tax regime without considering deductions like HRA, LTA, and 80C.
Old Tax Regime vs New Tax Regime 2025
Choosing between the old and new tax regimes depends on your income level and the deductions you can claim. Here’s a quick comparison:
- Old Tax Regime: Allows deductions under sections like 80C, 80D, and HRA. Ideal for individuals with significant investments and expenses.
- New Tax Regime: Offers lower tax rates but eliminates most deductions. Suitable for those with minimal investments and expenses.
Use the income tax calculator 2025 to determine which regime is more beneficial for you.
How to Use the Income Tax Calculator 2025
Calculating your tax liability is now easier than ever. Follow these steps:
- Enter your gross annual income.
- Select your tax regime (old or new).
- Input eligible deductions (if applicable).
- View your tax liability and net income.
Many online platforms like Groww and Moneycontrol offer free tax calculators for AY 2025-26.
Budget 2025 Highlights: What’s New?
The Union Budget 2025 has introduced several reforms to boost economic growth and simplify taxation. Key highlights include:
- Increased Standard Deduction: The standard deduction has been raised to ₹75,000 for salaried individuals.
- Tax Rebate for Middle-Income Groups: Individuals earning up to ₹12 lakhs are eligible for a full tax rebate under the new regime.
- Simplified TDS Rules: The government has introduced simplified TDS rules for freelancers and small businesses.
Conclusion
The New Tax Regime 2025 offers simplified tax slabs and significant rebates for middle-income groups. However, it’s essential to evaluate your financial situation and choose the regime that maximizes your savings. Use the income tax calculator 2025 to make an informed decision and stay updated with the latest budget highlights 2025.
For more updates on the Union Budget 2025 and tax-related news, follow trusted sources like Moneycontrol, CNBC Awaaz, and Zee Business.
