Income Tax Slab 2025: When the general budget is announced in India, taxpayers have only one question: What changes will the government make in the income tax slab this time? Now, in such a situation, the general budget of the year 2025 is in discussion. Right now, everyone is discussing that the government can think about increasing the tax-free income limit to 7.5 lakhs. By the way, in the new tax regime, tax exemption is available on annual income up to Rs 7 lakh. Now, if this limit is increased, then crores of salaried and middle-class people will get direct benefit. Let us know about it in detail.
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Current Income Tax Slab (2024-25)
Currently, the new tax system has such income slabs-
0 to 3 lakh rupees – no tax
3 lakh to 6 lakh rupees – 5% tax
6 lakh to 9 lakh rupees – 10% tax
9 lakh to 12 lakh rupees – 15% tax
12 lakh to 15 lakh rupees – 20% tax
More than 15 lakh rupees – 30% tax
Along with this, in the new tax system, 100 percent tax exemption is available under section 87A on income up to Rs 7 lakh.
What is the benefit of a 7.5 lakh tax-free limit?
- If the tax-free income limit is increased from Rs 7 lakh to Rs 7.5 lakh by the government, then these will be the benefits-
- Those earning up to Rs 7.5 lakh annually will not have to pay any income tax.
- To avail of tax exemption, the maximum income limit under section 87A will increase.
- This change will greatly benefit the lower middle class and salaried employees.
Why is the government taking this step?
- Inflation has increased in the last few months, which has affected people’s savings.
- The government can take such a decision to please the middle class during the elections.
- If people can save, they will spend more, which will develop the economy.
Its possible benefits
- Taxpayers’ net income will increase
- Spending capacity will improve
- Small investors will get a chance to save more
- Tax collection will also be limited, because most of the exemptions will be given to the lower-middle income group
Its possible disadvantages
- Government revenue may decrease
- High-income groups can also partially take advantage of this exemption
- Pressure on the fiscal deficit may increase in the long run
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What is the matter now?
No official announcement has been made by the Finance Ministry. But there is a lot of discussion on the possibility of increasing the tax-free limit in the general budget for the financial year 2025-26.