As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025 today at 11:00 AM, taxation remains a crucial focus, especially for the middle class. The big question is whether there will be any relief for taxpayers.
The Indian tax system currently offers two regimes – the Old Tax Regime and the New Tax Regime – each with different slab structures and benefits. Here’s a comparison of the two:
Comparison of Old and New Tax Regimes
| Income Slab | Old Tax Regime | New Tax Regime |
|---|---|---|
| Up to ₹2.5 lakh | No tax | - |
| Up to ₹3 lakh | - | No tax |
| ₹2.5 lakh - ₹5 lakh | 5% (rebate up to ₹5L) | 5% (rebate up to ₹7L) |
| ₹5 lakh - ₹7 lakh | 20% | 5% |
| ₹7 lakh - ₹10 lakh | 20% | 10% |
| ₹10 lakh - ₹12 lakh | 30% | 15% |
| ₹12 lakh - ₹15 lakh | 30% | 20% |
| Above ₹15 lakh | 30% | 30% |
In the Old Regime, taxpayers benefit from various deductions and exemptions, including those for insurance, home loans, and savings schemes. The New Regime, introduced for simplicity, offers lower tax rates but eliminates most deductions.
With the Union Budget 2025 set to be announced, all eyes are on potential revisions to these slabs and possible relief measures for taxpayers.
.jpg)
.jpg)
