₹12 Lakh Income? Your Tax Bill Just Went Poof!
If you earn up to ₹12 lakh, the Modi government just made your tax bill disappear. Budget 2025 is here, and it’s a total game-changer!
Embed Tweet: https://x.com/MIB_India/status/1885638561158107387
How Does It Actually Work? You still calculate tax as per slabs:
- ₹0-4 lakh → No tax
- ₹4-8 lakh → 5% tax
- ₹8-12 lakh → 10% tax
Normally, this means you’d owe ₹60,000 in tax. But here’s the twist: If your total income is ₹12 lakh or less, a ₹60,000 rebate wipes out your tax bill completely. So Final tax? ₹0. But remember, this is a rebate, not an exemption—meaning you STILL have to file your Income Tax Return (ITR) to claim it.
For Salaried Employees there’s an extra Benefit! If you earn ₹12.75 lakh, your taxable income after a ₹75,000 standard deduction falls to ₹12 lakh, meaning you still qualify for zero tax! But this applies ONLY if you opt for the new tax regime.
What The FM Said
In her Budget 2025 speech in the Parliament, Finance Minister Nirmala Sitharaman said, “Resident individual with total income up to ₹7,00,000 do not pay any tax due to rebate under the new tax regime. It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ₹12,00,000. Marginal relief as provided earlier under the new tax regime is also applicable for income marginally higher than ₹12,00,000.”
Zero tax liability for individuals with income in the tax bracket of less than 2.5 lakh rupees.
— SansadTV (@sansad_tv) February 1, 2025
👉New Tax Slabs
0-4 Lac: Nil
4-8 Lac: 5%
8-12 Lac: 10%
12-16 Lac: 15%
16-20 Lac: 20%
20-24 Lac: 25%
24 Lac onwards: 30%@nsitharaman @nsitharamanoffc @FinMinIndia pic.twitter.com/QLZ1qvCp54
Tax Benefits For All Slabs: FM
Later, speaking at a press conference the Finance Minister also said that the personal income tax changes will benefit those also who earn more than ₹12 lakh per annum. Talking about the tax relief for those in higher tax brackets the FM said, “The change in rates has also benefited people earning ₹24 lakh. Now they have ₹2.6 lakh more than under the old system. So, it is not just those earning up to ₹12 lakh who are benefited, because they do not have to pay any tax due to exemptions."
#WATCH | Delhi: Union Finance Minister Nirmala Sitharaman says, "If you compare what we have done today with what was done in 2014 under the Congress government...the change in rates has also benefited people earning Rs 24 lakh. Now they have Rs 2.6 lakh more than under the old… pic.twitter.com/bhkEZHbErz
— ANI (@ANI) February 1, 2025
