New Income Tax Slabs 2024-25:

• 1) Income up to Rs. 4 Lakh: No tax.
• 2) Rs. 4,00,001 to Rs. 8,00,000: 5% tax.
• 3) Rs. 8,00,001 to Rs. 12,00,000: 10% tax.
• 4) Rs. 12,00,001 to Rs. 16,00,000: 15% tax.
• 5) Rs. 16,00,001 to Rs. 20,00,000: 20% tax.
• 6) Rs. 20,00,001 to Rs. 24,00,000: 25% tax.
• 7) Above Rs. 24,00,000: 30% tax.

Key Tax Reliefs in Budget 2025

• 1) No Tax for Income up to Rs. 12 Lakh:
  One of the major changes under Budget 2025 is that Section 87A rebate has been enhanced. As a result, individuals earning up to Rs. 12.75 lakh, for salaried taxpayers, are not burdened with any tax liability. This rebate saves up to Rs. 60,000 from the taxes paid by those lower-income groups so that they do not get taxed.
• 2) Maximum Savings of Rs. 1.1 Lakh for Higher Income Earners:
  Taxpayers with income of Rs. 24 lakh shall get maximum tax savings of Rs. 1.1 lakh at the new regime. Due to difference in tax liability between the new and old regimes, savings are Rs. 1.1 lakh for those who are earning more than Rs. 12 lakh.
• 3) Marginal Saving for Tax Paying Slab Almost above Rs. 12 Lakh:
  The marginal relief is such that people earning a little more than Rs. 12 lakh are not burdened much more than those earning Rs. 12 lakh. The middle-income groups will be fairly treated in this way.

Additional Tax Reforms

The Budget 2025 is structured to make the process of taxation simple and compliant. Several reforms in this regard have been proposed:

• 1) Simplified TDS/TCS Compliance:
  The new budget includes simplified TDS and TCS regulations to reduce the hassle of direct and indirect taxpayers operating in e-commerce, real estate, and professional service industries.
• 2) Presumptive Scheme of Taxation for Small Businesses (Section 44BBD):
  For efficient filing of taxes under a scheme of presumptive taxation, based on their turnover, compliance hassles for small businesses will decrease.
• 3) Increased Timelines for Filing ITR-U:
  The new budget extends the time limit for filing ITR-U, encouraging voluntary compliance and reducing penalties for delayed filing.
• 4) Tax Benefits for NPS Vatsalya Accounts:
  Parents investing in their children's future through National Pension System (NPS) will enjoy additional tax benefits, promoting long-term savings.
• 5) Revised Tax Slabs for High-Income Earners:
  Income above Rs. 24 lakh would continue to incur 30% tax, but now this could be with new slab rates in order to provide a better structure of taxation.

Other Sectoral Investments in Budget 2025

Except income tax relief, Budget 2025 is all about investment in other important sectors:

• 1) Agriculture & MSMEs:
  In this sector, credit availability along with subvention for small farmers have been incorporated to enhance the growth rate of these two essential sectors.
• 2) Infrastructure Development:
  More money will be allocated for roads, railways, and smart city projects, besides investment in renewable energy sources such as solar and wind power.
• 3) Innovation & Technology:
  Budget 2025 will provide additional impetus to artificial intelligence, robotics, and semiconductor research, along with incentives for tech startups.
• 4) Exports:
  More finance and risk insurance mechanisms will be introduced to help small exporters enhance their global competitiveness.

Social Welfare and Development Initiatives

Healthcare, education, and financial inclusion are also at the forefront of Budget 2025:

• 1) Health & Education:
  Millions across the country will benefit from increased funding to government healthcare services and skill upgradation programs.
• 2) Financial Inclusion:
  Initiatives will be launched to enhance financial inclusion through digital plans and simplification of tax compliance processes for businesses and individual taxpayers.