New income tax calculation after Budget: How much tax will salaried save on incomes of Rs 12.75 lakh, Rs 15 lakh, Rs 20 lakh, Rs 25 lakh under new tax regime It is assumed that he/she claims a standard deduction of Rs 75,000 under the new tax regime
The new income tax slabs proposed under the new tax regime in Budget 2025 will help salaried individuals save a maximum income tax of Rs 1,14,400. The income tax savings are on the premise that an individual is claiming only a standard deduction of Rs 75,000 under the new tax regime. A salaried individual can save more tax if he claims a deduction on his employer’s contribution to the National Pension System (NPS).#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} Budget with ET
Union Budget 2025 Live Updates
Income Tax Budget 2025 Live Updates
Sensex Today | Stock Market LIVE Updates
Here is an EY analysis on how much additional tax savings a salaried employee will have from proposed new income tax slabs under the new tax regime. It is assumed that he/she claims a standard deduction of Rs 75,000 under the new tax regime.
Also read | Income Tax Slabs Budget 2025 Live Updates
Gross taxable income
Current income tax payableProposed income tax payableIncome tax saved after Budget 2025Rs 12,75,000Rs 83,2000Rs 83,2000Rs 15,00,000 Rs 1,30,000Rs 97,500Rs 32,500Rs 16,00,000Rs 1,53,400Rs 1,13,100Rs 40,300Rs 20,00,000Rs 2,78,200Rs 1,92,400Rs 85,800Rs 24,75,000Rs 4,26,400Rs 3,12,000Rs 1,14,400Rs 25,00,000Rs 4,34,200Rs 3,19,800Rs 1,14,400
As per EY analysis, taxpayers opting for the new tax regime in the current FY 2024-25 will save more in the upcoming FY 2025-26 due to changes proposed in the income tax slabs under the new tax regime.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrows Innovations
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Generative AI for Dynamic Java Web Applications with ChatGPT
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Mastering C++ Fundamentals with Generative AI: A Hands-On
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Performance Marketing for eCommerce Brands
By - Zafer Mukeri, Founder- Inara Marketers
Office Productivity
Zero to Hero in Microsoft Excel: Complete Excel guide 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
A2Z Of Money
By - elearnmarkets, Financial Education by StockEdge
Marketing
Modern Marketing Masterclass by Seth Godin
By - Seth Godin, Former dot com Business Executive and Best Selling Author
Astrology
Vastu Shastra Course
By - Sachenkumar Rai, Vastu Shashtri
Strategy
Succession Planning Masterclass
By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd.
Data Science
SQL for Data Science along with Data Analytics and Data Visualization
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
AI and Analytics based Business Strategy
By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI
Web Development
A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Digital Marketing Masterclass by Pam Moore
By - Pam Moore, Digital Transformation and Social Media Expert
Artificial Intelligence(AI)
AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills
By - Metla Sudha Sekhar, IT Specialist and Developer
Office Productivity
Mastering Microsoft Office: Word, Excel, PowerPoint, and 365
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Digital marketing - Wordpress Website Development
By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert
Office Productivity
Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis
By - Metla Sudha Sekhar, IT Specialist and Developer
Web Development
Mastering Full Stack Development: From Frontend to Backend Excellence
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
Financial Literacy i.e Lets Crack the Billionaire Code
By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator
Data Science
SQL Server Bootcamp 2024: Transform from Beginner to Pro
By - Metla Sudha Sekhar, IT Specialist and Developer
Shalini Jain, Tax Partner, People Advisory Services, EY India says, “Budget 2025 has made significant changes to income tax slabs under the new tax regime while keeping the tax slabs unchanged in the old tax regime. This demonstrates that the government wants to encourage wider adoption of the new tax regime to ease the burden on both the taxpayers and the income tax authorities. The proposed changes will provide much needed tax relief to the lower and middle income bracket taxpayers. Now a salaried taxpayer whose net taxable income is Rs 12 lakh will pay NIL tax due to the enhanced tax rebate proposed in the Budget 2025. Even those taxpayers who fall in 30% tax bracket will now save taxes of Rs.1,14,400 (including cess) due to recalibration of the income tax slabs. For FY 2023-24, about 72% of the taxpayers opted for new tax regime. With the proposed changes in Budget 2025, it is expected that even a higher percentage of individual taxpayers will opt for new tax regime going forward."
Also read | How to pay zero tax in new tax regime: 2 deductions salaried taxpayers can claim to reduce taxable income to Rs.12 lakh
Hitesh Sharma, Partner, Vialto Partners, says, "The proposed amendments are likely to give a significant boost to taxpayers opting for the new tax regime (NTR). With the tax-free income limit now raised to ₹12 lakh (₹12.75 lakh for salaried individuals) and revised slabs reducing overall tax liability, middle-class income group stand to gain the most. In FY 2023-24, 72% of taxpayers had already opted for NTR, up from 66% in the previous year. While this trend is likely to continue, taxpayers who benefit from deductions (such as HRA, home loans and investments) may still prefer the old tax regime. The proposed amendments would increase the spendable income and encourage tax filing compliance; however, it could also possibly contribute to discouraging investments in savings schemes."
Individuals opting for old tax regime
Individuals opting for the old tax regime will now have to claim minimum deductions/exemptions of up to Rs.8.5 lakh (including standard deduction of Rs.50,000) in a financial year. This amount of deduction is necessary so that the individual pays the same amount of tax under the old and proposed new tax regime.Gross taxable income
Income tax payable under old tax regimeProposed income tax under new tax regimeDeductions to pay same tax in both tax regimesRs 12,75,000NilNilRs 7,75,000Rs 15,00,000Rs 97,500Rs 97,500Rs 5,93,750Rs 16,00,000Rs 1,13,100Rs 1,13,100Rs 6,18,750Rs 20,00,000Rs 1,92,400Rs 1,92,400Rs 7,58,333Rs 24,75,000Rs 3,12,000Rs 3,12,000Rs 8,50,000Rs 25,00,000Rs 3,19,800Rs 3,19,800Rs 8,50,000
If the salaried taxpayer claims lower deductions than the amounts mentioned above, then he will pay more tax in old tax regime as compared to new tax regime.
In the last budget, an individual taxpayer was required to claim the minimum deduction of Rs 4,83,333 to ensure that the tax payable in both the tax regimes remains the same. This includes standard deduction of Rs 50,000 under the old tax regime.
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
