In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced significant revisions to the income tax slabs under the New Tax Regime, aiming to provide relief to middle-class taxpayers and stimulate consumption.

Revised Income Tax Slabs Under the New Tax Regime:
- Income up to ₹4 lakh: No tax
- ₹4 lakh to ₹8 lakh: 5%
- ₹8 lakh to ₹12 lakh: 10%
- ₹12 lakh to ₹16 lakh: 15%
- ₹16 lakh to ₹20 lakh: 20%
- ₹20 lakh to ₹24 lakh: 25%
- Above ₹24 lakh: 30%
Comparison with the Previous New Tax Regime:
- The zero tax threshold has been increased from ₹3 lakh to ₹4 lakh.
- The 5% tax bracket now covers incomes from ₹4 lakh to ₹8 lakh, up from the previous ₹3 lakh to ₹7 lakh range.
- The 10% tax bracket has been adjusted to ₹8 lakh to ₹12 lakh from the earlier ₹7 lakh to ₹10 lakh.
- The 15% tax bracket now spans ₹12 lakh to ₹16 lakh, compared to the previous ₹10 lakh to ₹12.5 lakh.
- The 20% tax bracket has been extended to ₹16 lakh to ₹20 lakh, from the earlier ₹12.5 lakh to ₹15 lakh.
- A new 25% tax bracket has been introduced for incomes between ₹20 lakh and ₹24 lakh.
- The 30% tax rate now applies to incomes above ₹24 lakh, up from the previous threshold of ₹15 lakh.
Old Tax Regime vs. New Tax Regime:
The Old Tax Regime continues with its existing tax slabs and allows taxpayers to claim various exemptions and deductions, such as those under Section 80C, 80D, and House Rent Allowance (HRA). In contrast, the New Tax Regime offers lower tax rates but does not permit most exemptions and deductions.
Which Regime Should You Choose?
The choice between the Old and New Tax Regimes depends on individual financial situations. Taxpayers who have significant investments and can claim substantial deductions may find the Old Tax Regime more beneficial. Conversely, those who prefer a simplified tax structure with lower rates and minimal exemptions might opt for the New Tax Regime. It’s advisable to calculate tax liabilities under both regimes to determine which is more advantageous.
These adjustments are part of the government’s strategy to increase disposable incomes, thereby enhancing consumption, savings, and investments in the economy.
For best online new visit https://newsnestify.com/