New Income Tax Slabs, Revised Income Tax Slab Rates Budget 2025 Highlights: In a relief to the middle class, Finance Minister Nirmala Sitharaman exempted annual income of up to Rs 12 lakh from income tax and rejigged tax slabs. Presenting her eighth consecutive budget in the Lok Sabha, Sitharaman outlined a forward-looking plan that includes raising the foreign direct investment (FDI) limit in the insurance sector, simplifying tax laws, and reducing duties on intermediaries. The government will introduce a new Income Tax bill in Parliament next week, replacing the six-decade old income tax act of 1961. Sitharaman, in her speech, said the new I-T Bill will carry forward the spirit of “Nyaya” (justice) based on the concept of “trust first, scrutinise later”.
Income Tax Slab Rate 2025 Live: Standard Deduction to be raised to Rs 1 lakh from Rs 75,000 under New Tax Regime?
Expectations are high that the government may hike the standard deduction from Rs 75,000 to Rs 100,000, offering greater relief and allowing taxpayers to offset everyday expenses against their taxable incomes. Remember, the government has not tweaked the standard deduction limit set under the Old Tax Regime for many years. Under the old regime, people still get Rs 50,000 as standard deduction benefits.
Income Tax Slab Rate 2025 Live: Home loan borrowers to get tax relief under new tax regime? Credit-linked subsidy among key wishlist!
Home loan borrowers are hopeful that Finance Minister Nirmala Sitharaman will introduce policies that ease the financial burden on them by giving some tax breaks. Among many expectations, homebuyers are hoping that the government will reintroduce the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana, under which a subsidy of up to Rs 2.67 lakh was offered to eligible beneficiaries.
Income Tax Slab Rates for FY 2025-26 Live Updates: Will FM announce formal roll-out of Direct Tax Code 2025 in Budget 2025?
Taxpayers and tax experts have been waiting for FM to announce Direct Tax Code in the Union Budget 2025. Individual taxpayers in India are looking forward to key reforms under the DTC, which is expected to simplify the tax process. The new tax system will also offer enhanced relief and promote greater transparency within the taxation system.
Income Tax Slab Rates for FY 2025-26 Live Updates: Income Tax Slab Rates for FY 2025-26 Live Updates: It is widely anticipated that the government will increase the basic income tax exemption limit from Rs 3 lakh to Rs 5 lakh, which means individuals earning up to Rs 5 lakh will be exempt from filing ITR and also they will enjoy zero tax liability.
Speculation has been rife since 2020, when the New Tax Regime was introduced, that the Modi government would soon scrap the Old Tax Regime. However, five years have passed since the new regime was launched, and the Old Tax Regime is still in place. It is unlikely to be abolished in Union Budget 2025, experts believe.
Having said that, the government will continue to focus on the New Tax Regime, which offers lower tax rates but limits deductions and exemptions. Given the diverse financial situations of taxpayers, a phased transition, rather than an abrupt discontinuation of the old tax regime, seems more likely.