No income tax payable on annual income of up to Rs 12 lakh, standard deduction also increase from 50 thousand to 75 thousand. So, no tax for up to Rs 12.75 lakh income for salaried under new tax regime as Section 87A tax rebate hiked in Budget 2025
Union FM Sitharaman has presented the Union Budget FY: 2025-26. The budget announced that no income tax will be payable on annual income of up to Rs. 12,00,000 in the new tax regime rebate.
The new proposed tax regime, post budget FY:2025-26
The new tax slabs in India from FY 2025 are like below:
| Income | % of Tax Payable |
|---|---|
| 00 – 04 lakh | Nil |
| 04 – 08 lakh | 5% |
| 08 – 12 lakh | 10% |
| 12 -16 lakh | 15% |
| 16 – 20 lakh | 20% |
| 20 -24 lakh | 25% |
| Above 24 Lakh | 30% |
Also for salaried individuals, who are eligible for a standard deduction, the new proposal is increase standard deduction of Rs 75,000 from old Rs 50,000, the effective rebate limit now stands at Rs 12.75 lakhs.