Income tax slabs union budget 2025 : The Union Budget 2025 has introduced significant updates to income tax slabs, impacting salaried professionals across India. With strategic financial planning, taxpayers can optimize deductions and exemptions under the new income tax regime to legally reduce their tax burden. If managed effectively, individuals earning up to ₹13.7 lakh annually can pay zero income tax by leveraging standard deductions, National Pension System (NPS) investments, and other tax-saving instruments.
Table of Contents
New Income Tax Slabs Under Union Budget 2025
The government continues to refine the tax structure, making the income tax slabs more taxpayer-friendly. Here’s a breakdown of the latest tax slabs under the new regime:
- Income up to ₹3 lakh – 0% tax (No tax liability)
- ₹3 lakh to ₹6 lakh – 5% tax
- ₹6 lakh to ₹9 lakh – 10% tax
- ₹9 lakh to ₹12 lakh – 15% tax
- ₹12 lakh to ₹15 lakh – 20% tax
- Above ₹15 lakh – 30% tax
Income tax slabs union budget 2025 :
| Basic Income (Rs Lakh) | Basic Salary (Rs Lakh) | NPS Contribution (14% of Basic) (Rs) | Taxable Income (Rs Lakh) | Total Tax (Rs Lakh) |
|---|---|---|---|---|
| 13.7 | 6.85 | 95,900 | 11.99 | NIL |
| 16 | 8 | 1.12 lakh | 14.13 | 91,950 |
| 24 | 12 | 1.68 lakh | 21.57 | 2.39 lakh |
| 32 | 16 | 2.24 lakh | 29.01 | 4.50 lakh |
| 48 | 24 | 3.36 lakh | 43.89 | 8.97 lakh |
The new tax regime offers no exemptions for HRA, LTA, or Section 80C deductions but provides a standard deduction of ₹50,000 and additional benefits for pension contributions and employer EPF contributions.
How to Pay Zero Tax with ₹13.7 Lakh Salary?
A taxpayer earning ₹13.7 lakh can strategically use deductions and exemptions to reduce taxable income. Here’s how it works, income tax slabs union budget 2025 :
- Standard Deduction: ₹50,000 – Available to all salaried individuals.
- NPS Contributions (Section 80CCD(2)): ₹1.5 lakh – Employer’s contribution to NPS is tax-free.
- Additional NPS Deduction (Section 80CCD(1B)): ₹50,000 – Extra deduction for voluntary NPS contributions.
- Rebate Under Section 87A: If taxable income is below ₹7 lakh, tax liability is nullified.
After applying these deductions, the effective taxable income falls within the rebate threshold, ensuring zero tax liability. Income tax slabs union budget 2025.
Comparing Old vs. New Tax Regime
Under the old regime, taxpayers could claim HRA, LTA, 80C, 80D (medical insurance), and home loan interest deductions. However, with the income tax slabs Union Budget 2025, the new tax regime provides simplicity and eliminates the hassle of multiple deductions.
For individuals with a salary of ₹13.7 lakh, the new regime proves beneficial, offering lower tax rates and the ability to achieve zero tax liability through structured financial planning. Income tax slabs union budget 2025
Key Benefits of the New Tax Regime
✅ Simplified Tax Structure – No need for complex investment proofs.
✅ Higher Take-Home Salary – Lower tax rates ensure more disposable income.
✅ Encouragement for Retirement Savings – Increased NPS benefits support long-term wealth creation.
✅ No Tax on Income up to ₹7 Lakh – Section 87A rebate ensures tax-free income up to this limit.
Also Read : Union Budget 2025: 7 Key Initiatives Driving Digital Healthcare and Economic Growth
Conclusion
The income tax slabs in Union Budget 2025 offer a streamlined tax system with potential savings for salaried individuals. By utilizing standard deductions, NPS contributions, and other exemptions, taxpayers earning ₹13.7 lakh annually can legally pay zero tax. With proper financial planning, individuals can maximize benefits while securing their financial future. Income tax slabs Union Budget 2025
FAQs
1. What are the latest income tax slabs under Union Budget 2025?
The new tax slabs range from 0% for income up to ₹3 lakh to 30% for income above ₹15 lakh under the revised tax structure. income tax slabs Union Budget 2025
2. Can I still claim HRA and 80C deductions in the new tax regime?
No, the new regime does not allow deductions like HRA, LTA, or Section 80C but offers a standard deduction of ₹50,000 and NPS benefits.
3. How can a person earning ₹13.7 lakh pay zero tax?
By utilizing standard deductions, NPS contributions, and employer benefits, taxable income can be reduced below the rebate threshold, ensuring zero tax liability.
4. Is the old tax regime still available in Union Budget 2025?
Yes, taxpayers can choose between the old and new tax regimes based on their financial preferences.
5. Should I opt for the new tax regime?
If you prefer lower tax rates and a simpler tax filing process, the new regime is beneficial, especially for individuals without major investments in tax-saving instruments.
