New Income tax slabs 2025-26 in the union budget 2025, An important change can be seen. The NDA government is considering making income up to Rs 10 lakh tax free.
Union Finance Minister Nirmala Sitharaman can give a big relief to income taxpayers while presenting the budget for 2025-26 on February 1. According to sources, the government can give tax exemption to taxpayers earning up to Rs 10 lakh.
For this, two options are currently being considered. First – making annual income up to Rs 10 lakh tax-free and second – creating a new tax slab of 25% for those earning Rs 15 to 20 lakh. However, there is a preparation to give this exemption only to those in the new tax regime.
At present, with a standard deduction of Rs 75,000, salaried persons do not have to pay tax on income up to Rs 7.75 lakh. At the same time, those with income above Rs 15 lakh fall in the 30% tax slab. According to sources, if these options are implemented in the new income tax slab, the central government may lose revenue of about Rs 50,000 crore to Rs 1 lakh crore.
Union Budget 2025 New Income tax slab 2025-26:
The country’s union budget 2025 is going to be presented on February 1. This time too, it is expected that some changes will be seen in the new income tax slabs. Especially those earning up to Rs 10 lakh can get good news. But, this good news will be for those taxpayers who pay their tax in the New Tax Regime.
The union budget 2025 can bring hope of big relief in income tax for common citizens, especially the middle class and high income group.
New Income Tax Slab for those with income of 15 lakh to 20 lakhs?
At present, if someone’s annual income is more than Rs 15 lakh, then 30% tax is levied on it. But, in Budget 2025, a new income tax slab can be introduced for those with income of 15 lakh to 20 lakhs. In this new income tax slab, the tax can be reduced from 30% to 25%. This change can be a relief especially for the high income group and they can avoid heavy tax rates.
New Income tax slabs: What will Change in the New Tax Regime?
In the new income tax regime, there is no tax on income up to Rs 7.75 lakh. If this limit is increased to Rs 10 lakh, then millions of people will benefit from it. After this change, income up to Rs 10 lakh can be made completely tax free, so that small and middle class people will be able to take more benefit. One of its objectives is also to include as many taxpayers as possible in the new tax regime.
Old Vs New Tax Regime:
Old income tax slab
- ₹0-2.5 lakh: 0% tax
- ₹2.5-5 lakh: 5% tax
- ₹5-10 lakh: 20% tax
- ₹10 lakh+: 30% tax
New tax regime slab
- ₹0-3 lakh: 0% tax
- ₹3-6 lakh: 5% tax
- ₹6-9 lakh: 10% tax
- ₹9-12 lakh: 15% tax
- ₹12-15 lakh: 20% tax
- ₹15 lakh+: 30% tax
What Experts Are Saying:
There should be a 25% new income tax slab for those with income up to Rs 20 lakh. At a time when GDP growth is slow, relief in income tax exemption will increase urban consumption. Earlier, relief was given in income tax in the 2023 budget. Then the tax exemption in section 87A was increased to Rs 7 lakh for those in the new tax regime. However, most of the exemptions are not available in the new tax regime.
Former member of the Central Board of Direct Taxes, Akhilesh Ranjan says that the government should bring a new income tax slab of 25% for those with income between Rs 15 lakh and Rs 20 lakh. This will leave more money with people, which will increase consumption. These are the same people who buy consumer durables like fridges, Washing machines.
Prof. Anil Sood of the Institute for Advanced Studies in Complex Choices also says- A tax rate of 30% on income slightly above Rs 15 lakh is not right.
New Income tax slab: Attempt to Give Relief to the Middle Class
The middle class can be given relief in Budget 2025. By doing this, consumption can get a big push. This will give impetus to the Indian economy. Due to tax exemptions and changes in the new income tax slab, people will have more money in their hands which they can spend, which will lead to faster growth of the economy.
Edited By Pramod Kumar.
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