Budget 2025: This is how the new tax rates will impact your tax outgo

Union Budget 2025: During the Budget speech, Nirmala Sitharaman announced the new tax rates under the new tax regime.

These are the new rates

0-4 lakh Nil

4 to 8 lakh 5 per cent

8-12 10 percent

12-16 lakh 15 per cent

16-20 lakh 20 percent

20-24 lakh 25 per cent

Above 24 lakh 30 per cent

Tax saving across income categories

If your income is ₹12,75,000, your tax outgo will be zero whereas it was ₹80,000 until now.

If your salary income is ₹15.75 lakh, your tax outgo will be ₹1.05 lakh whereas earlier it was ₹1.4 lakh, thus enabling you save ₹35,000.

And if your salary income is ₹25,75,000, your tax outgo will be ₹3.3 lakh unlike ₹4.4 lakh earlier, thus helping you save Es 1.10 lakh.

Upto ₹12 lakh: To tax payers upto ₹12 lakh of normal income (other than special rate income such as capital gains) tax rebate is being given apart from the benefit as a result of the slab rate reduction in such a manner that there is no tax payable by them.

A tax payer in the new regime with an income of ₹12 lakh will get a benefit of ₹80,000 in tax (which is equivalent to 100 per cent of tax payable as per existing rates).

“Tax Rebate which is currently ₹25,000 has been raised to ₹60,000. For salaried persons, there will be no income tax upto ₹12.75 lakh because there is a standard deduction of ₹75,000,” said CA Pratibha Goyal, partner of PD Gupta & Company, a Delhi-based firm.

Upto ₹18 lakh: A person having income of ₹18 lakh will get a benefit of ₹70,000 in tax (30 per cent of tax payable as per existing rates).

Upto ₹25 lakh: A person with an income of ₹25 lakh gets a benefit of ₹1,10,000 (25 per cent of his tax payable as per existing rates).