The Union Budget 2025, announced by Finance Minister Smt. Nirmala Sitharaman, has introduced significant changes to income tax structures, offering substantial benefits to the middle class. Choosing the right regime—old or new—is key to optimizing your income and minimizing your tax liability. Let’s dive into a detailed comparison of both regimes, the updated slabs, and expert insights to help you make an informed choice.
The old income tax regime is ideal for individuals who want to leverage deductions and exemptions to reduce their taxable income. Below is the tax slab structure:
Income Range (INR) |
Tax Rate |
0 to 2,50,000 |
No Tax |
2,50,001 to 5,00,000 |
5% |
5,00,001 to 10,00,000 |
20% |
Above 10,00,000 |
30% |
The Union Budget 2025 has further streamlined the new income tax regime, making it an attractive option for middle-class taxpayers. With lower tax rates and an increased rebate limit, the new regime offers simplicity and savings. Here's the updated tax slab structure:
Income Range (INR) |
Tax Rate |
0 to 4,00,000 |
No Tax |
4,00,001 to 8,00,000 |
5% |
8,00,001 to 12,00,000 |
10% |
12,00,001 to 16,00,000 |
15% |
16,00,001 to 20,00,000 |
20% |
20,00,001 to 24,00,000 |
25% |
Above 24,00,000 |
30% |
Still unsure which regime suits you best? Let the experts at JJ Tax help! With personalized advice at a minimal cost, we’ll help you plan your taxes and maximize your earnings.
👉 Visit us today at www.jjfintax.com and start your journey towards smarter tax planning.