Income tax slab: 5 key changes in the new tax regime every taxpayer must know before filing ITR 2025 | Mint
Source: Live Mint
Income tax slab: In Budget 2024, Finance Minister Sitharaman introduced key changes to the income tax slabs under the new tax regime to make them more attractive for taxpayers. Along with adjustments in the tax slabs, the standard deduction limit was increased. Modifications were also made to the family pension and the employee’s contribution to the National Pension Scheme (NPS). However, the old tax regime remains unchanged.
Key changes in new tax regime that taxpayers must know for filing ITR in 2025
1)Income tax slabs
Under the new tax regime, the government has revamped the income tax slabs, allowing taxpayers who choose this option to save up to ₹17,500 annually.
2) Income tax slab rates
The income tax slabs have been revamped under the new tax regime. There is no tax on income up to ₹3 lakh. The tax rate is set at 10% for income between ₹7 lakh and ₹10 lakh, and 5% for earnings between ₹3 lakh and ₹7 lakh. 15% tax will be applied to income between ₹10 lakh and ₹12 lakh, while 20% tax will be applied to income between ₹12 lakh and ₹15 lakh. The case of income above ₹15 lakh, the tax rate stays at 30%.
3)Standard deduction for salaried individuals
Under the new tax regime, the government increased the standard deduction ceiling from ₹50,000 to ₹75,000
4) Standard deduction for family pensioners
The standard deduction limit for family pensioners from ₹15,000 to ₹25,000.
5)National Pension System (NPS)
Under Section 80CCD(2), up to 10% of the employee’s basic salary in the pension scheme is tax-free. For taxpayers who have opted for the new tax regime, this limit is higher at 14%.
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