Income tax upto 12 lacs is now NIL : Government announces se

Nil tax slab now raised to 12 lacs from the current 7 lacs. This limit will be 12.75 lacs for salaried taxpayers due to standard deduction of Rs. 75000 available to them
Slabs will be adjusted accordingly

0-4 lacs - NIL taxation
4-8 lacs - 5%
8-12 lacs - 10%
12-16 lacs - 15%
16-20 lacs - 20%
20-24 lacs - 25%
Above 24 lacs - 30%

Tax rebates are being provided so that taxability is reduced to that extent:

Taxpayers with upto Rs. 12 lacs of normal income other than special tax incomes (like capital gain tax) - rebate is Rs. 80000 which is 100% of tax payable as per existing rates
Taxpayers with upto Rs. 18 lacs of normal income other than special tax incomes (like capital gain tax) - rebate is Rs. 70000 i.e. 30% of his tax payable
Taxpayers with upto Rs. 25 lacs of normal income other than special tax incomes (like capital gain tax) - rebate is Rs. 110000 i.e. 25% of his tax payable

Government introduces benefits on TDS for small taxpayers in Budget 2025 such as:

Limits on Tax deductions for senior citizens on interest is being doubled from Rs. 50000 to Rs. 100000
Annual limit of Rs. 2.4 lacs on rent is being increased to Rs. 6 lacs
TCS on Educational remittances has been removed in cases where the amounts are coming from loans taking for education purposes from a financial institution
Individuals can now file revised returns upto 4 financial years from the assessment year from the current 2 years
Individuals can now file annual value as NIL for upto self occupied properties instead of 1 without any condition.

With inputs from agencies

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