#taxslabs

📢 BREAKING: Budget 2025 - New Income Tax Slabs! 💰📊

✅ No tax up to ₹4 lakh (earlier ₹3 lakh) ✅ Zero tax for income up to ₹12 lakh (with rebate) ✅ Lower tax rates for middle-class earners ✅ Standard deduction increased to ₹75,000

📢 Budget 2025: New Income Tax Slabs & Rates Announced! 💰📊

The Union Budget 2025 has introduced significant tax reforms aimed at simplifying taxation and reducing the tax burden for individuals. 🚀

🔹 Higher tax exemption limit – Now ₹4 lakh (up from ₹3 lakh) 🔹 Zero tax for income up to ₹12 lakh (with rebates) 🔹 Lower tax rates for middle-class earners 🔹 Standard deduction increased from ₹50,000 to ₹75,000

🔍 Key Tax Slab Changes (Old vs. New Regime):

✅ No tax up to ₹4 lakh (previously ₹3 lakh) ✅ Income between ₹4 lakh - ₹8 lakh taxed at 5% ✅ Income between ₹8 lakh - ₹12 lakh taxed at 10% (was 20% before!) ✅ Income between ₹12 lakh - ₹16 lakh taxed at 15% (was 30% before!) ✅ Income between ₹16 lakh - ₹20 lakh taxed at 20% ✅ Income between ₹20 lakh - ₹24 lakh taxed at 25% ✅ Above ₹24 lakh – tax remains 30%

💡 What This Means for You?

More tax savings due to reduced rates ✅

Simpler tax filing with fewer exemptions ✅

Higher disposable income for investments & spending ✅

Understanding Your Tax Obligations is Crucial!

Here is the breakdown of the current income tax slabs: Up to Rs. 3 lakh: No Tax Over Rs. 3 lakh to Rs. 6 lakh: 5% Over Rs. 6 lakh to Rs. 9 lakh: 10% Over Rs. 9 lakh to Rs. 12 lakh: 15% Over Rs. 12 lakh to Rs. 15 lakh: 20% Above Rs. 15 lakh: 30%

Knowing these tax slabs can help you plan your finances better and ensure you meet your tax obligations accurately. Stay informed and manage your taxes effectively!

Income tax is a significant part of every citizen's financial responsibility, and understanding the income tax slab for the financial year 2023-2024 is crucial to manage your finances efficiently. In this blog, we will provide you with a comprehensive guide to the income tax slab for the upcoming financial year, helping you navigate your tax obligations effectively.

Income Tax Slab for Individuals Below 60 Years of Age

For individuals below the age of 60, the income tax slabs for the financial year 2023-2024 are as follows:

Income up to Rs. 2.5 lakhs: No tax payable.

Income between Rs. 2.5 lakhs and Rs. 5 lakhs: 5% of the income exceeding Rs. 2.5 lakhs.

Income between Rs. 5 lakhs and Rs. 10 lakhs: 20% of the income exceeding Rs. 5 lakhs, plus a cess of 4%.

Income above Rs. 10 lakhs: 30% of the income exceeding Rs. 10 lakhs, plus a cess of 4%.

Income Tax Slab for Individuals Aged 60 and Above (Senior Citizens).

For individuals aged 60 and above but below 80, the income tax slabs for the financial year 2023-2024 remain the same as for individuals below 60.

Income Tax Slab for Individuals Aged 80 and Above (Super Senior Citizens)

Super senior citizens, aged 80 and above, enjoy a higher exemption limit:

Income up to Rs. 5 lakhs: No tax payable.

Income between Rs. 5 lakhs and Rs. 10 lakhs: 20% of the income exceeding Rs. 5 lakhs, plus a cess of 4%.

Income above Rs. 10 lakhs: 30% of the income exceeding Rs. 10 lakhs, plus a cess of 4%.

Income Tax Rebates and Deductions.

The government provides certain rebates and deductions to help individuals save on their tax liability:

Standard Deduction: A standard deduction of Rs. 50,000 is available for salaried and pensioned individuals.

Section 80C: You can claim deductions up to Rs. 1.5 lakhs under Section 80C for investments in instruments like Employee Provident Fund (EPF), Public Provident Fund (PPF), and Life Insurance Premiums.

Section 80D: Deductions for health insurance premiums under Section 80D.

Section 24(b): Deductions for home loan interest up to Rs. 2 lakhs per annum.

Section 80E: Deductions for education loans.

Section 10(14): House Rent Allowance (HRA) exemption for salaried individuals.