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Saturday, Feb 8, 2025

Income Tax Slabs | Budget 2025: PM Modi says tax rebate will provide big benefit to middle class

Income Tax Slabs | Budget 2025: There will be zero income tax up to an annual income of 12 Lakh under the new tax regime, FM Sitharaman has announced.
Income tax slabs live: People watch the presentation of Union Budget 2025-26 on television screens at a showroom, in Gurugram, Saturday, Feb. 1, 2025.
Income tax slabs live: People watch the presentation of Union Budget 2025-26 on television screens at a showroom, in Gurugram, Saturday, Feb. 1, 2025.

Income Tax Slabs | Budget 2025: In a major announcement, Union finance minister Nirmala Sitharaman on Saturday said that under the new tax regime, there will be zero income tax up to an annual income of 12 Lakh. The announcement was made by the finance minister during the Budget speech in the Lok Sabha. Nirmala Sitharaman said that the slabs and rates are being changed across the board to benefit all tax-payers....Read More

“New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment,” the finance minister announced in the Parliament.

Sitharaman also said that the government will be introducing a new Income Tax (I-T) bill in Parliament next week.

At the moment, taxpayers can choose between two tax systems: The old tax regime, which allows exemptions on housing rentals and insurance, and the new tax regime, which was introduced in 2020 and offers slightly lower rates but doesn't allow major exemptions.

Salaried taxpayers are free to choose either regime when they file their returns but for those with income from business or profession, the new regime was set as the default regime from FY 2023-24.

Here's what the revised tax slabs under the new tax regime will look like:

  • 0 to 4 lakh: Nil
  • 4 to 8 lakh: 5%
  • 8 to 12 lakh: 10%
  • 12 to 16 lakh: 15%
  • 16 to 20 lakh: 20%
  • 20 to 24 lakh: 25%
  • Above 24 lakh: 30%

Income Tax Budget 2025 Live: How to calculate income tax?


You can calculate your income tax using the Tax Calculator on the Income Tax Department's official website. Here are the steps you should follow:

Step 1: Go to the e-filing home page.

Step 2: You need to Select Quick Links and choose tax calculator.

Step 3: Click the link to go to the Income and Tax Calculator page. There are two options: Basic Calculator and Advanced Calculator. The Basic Calculator tab is selected by default.

Step 4: In the Basic Calculator tab, you need to enter the details like the Assessment Year, taxpayer category, age, residential status, total annual income and total deductions. The tax calculation will appear in the Tax Summary section, according to the details you entered.

Step 5: In the Advanced Calculator tab, you need to enter more details, including Preferred tax regime, AY, taxpayer category, age, residential status, due date and actual date of submission of return.

Read the latest news on Budget 2025 with our live coverage, featuring insights on income tax slabs, stock market impact, and the Budget 2025 speech.

Follow all the updates here:
Feb 1, 2025 3:45 PM IST

Income Tax Slabs | Budget 2025 LIVE: Grant Thornton Bharat partner on Budget announcement

Income Tax Slabs | Budget 2025 LIVE: “There is an interesting change to the income tax law with respect to foreign companies branch taxation (typically to cover entities from Taiwan/ US). If any such company is helping Indian companies to set up or operating electronics manufacturing facilities by provision of specialised services and technology, then they would be subjected to a presumptive tax on a deemed profit of 25% on all receipts/ payments to such entity (as a foreign branch – so the effective tax would be 40% of 25% = ~ 10%),” Sridhar R, Partner, Grant Thornton Bharat says.

“The understanding is that electronic manufacturing facilities such as fabrication facilities / chipset/ foundry etc. that need specialised services and technology can be notified by MEiTY to get covered under this clause. This gives the foreign entity the flexibility to operate as a branch without the need to set up an Indian company to provide such services. Also, above does away with an arbitrary controversy under TP and Domestic Income Tax law for such companies.”

Feb 1, 2025 3:14 PM IST

Income Tax Slabs | Budget 2025 LIVE: TDS threshold limits hiked for rent, foreign travel

Income Tax Slabs | Budget 2025 LIVE: Union finance minister Nirmala Sitharaman in her Budget 2025 speech on Saturday proposed to rationalise tax deduction at source (TDS) by reducing the number of rates and thresholds above which TDS is deducted. In her 8th consecutive budget speech, Nirmala Sitharaman said that the threshold amounts for tax deduction will be increased for better clarity and uniformity. Check TDS threshold limits here.

Feb 1, 2025 3:01 PM IST

Income Tax Slabs | Budget 2025 LIVE: PM Modi on updated tax reforms

Income Tax Slabs | Budget 2025 LIVE: On the new income tax slabs, Prime Minister Narendra Modi says: "In this budget, income up to 12 lakh per annum has been made tax-free. For all income groups, taxes have been reduced. It will hugely benefit our middle class. It will be an opportunity for the people who have recently joined the workforce..."

Feb 1, 2025 2:48 PM IST

Income Tax Slabs | Budget 2025 LIVE: This budget will fill the pockets of the citizens of the country, says PM Modi

Income Tax Slabs | Budget 2025 LIVE: On Union Budget 2025, Prime Minister Narendra Modi says: “Usually the focus of the budget is on how the government treasury will be filled, but this budget is exactly the opposite of that. How will this budget fill the pockets of the citizens of the country, how will the savings of the citizens of the country increase and how will the citizens of the country become partners in development…this budget lays a very strong foundation for this.”

Feb 1, 2025 2:45 PM IST

Income tax new slabs LIVE: ‘This budget is a force multiplier,’ says PM Modi

Income tax new slabs LIVE: "This budget is a force multiplier. This budget will increase savings, investment, consumption and growth rapidly. I congratulate finance minister Nirmala Sitharaman and her entire team for this Janta Janardan's, People's budget," Prime Minister Narendra Modi says.

Feb 1, 2025 2:40 PM IST

Income tax new slabs LIVE: PM Modi hails Union Budget 2025

Income tax new slabs LIVE: "Today is an important milestone in India's development journey. This is the budget of aspirations of 140 crore Indians. This is a budget that fulfils the dreams of every Indian. We have opened many sectors for the youth. The common citizen is going to drive the mission of Viksit Bharat," Prime Minister Narendra Modi says.

Feb 1, 2025 2:33 PM IST

Income tax new slabs LIVE: Direct, indirect taxes comprise 66 paise of every rupee in govt coffer

Income tax new slabs LIVE: For every rupee in the government coffer, the biggest pie of 66 paise will come from direct and indirect taxes, according to the Union Budget 2025-26 documents.

Around 24 paise will come from borrowings and other liabilities, 9 paise from non-tax revenue like disinvestment, and 1 paise from non-debt capital receipts, the Budget documents said.

Feb 1, 2025 2:32 PM IST

Income tax new slabs LIVE: Union minister Hardeep Puri on new tax slabs

Income tax new slabs LIVE: Union minister Hardeep Puri on new tax slabs: “...It was an excellent budget... The middle class has been exempted from the income tax on income of up to 12 lakhs and many such provisions are there…”

Feb 1, 2025 2:24 PM IST

Income tax new slabs LIVE: Piyush Goyal on Union Budget announcements

Income tax new slabs LIVE: On Union Budget 2025, Union Minister Piyush Goyal says: "She (Nirmala Sitharaman) has given a much-needed big relief to the middle class. Everybody whose income is up to 12 lakhs or whose salary earner is up to 12 lakhs 75 thousand is now exempt from all taxes. Up to 25 lakhs, there is a continuous reduction in income tax and then beyond that also everybody saves a lakh of rupees.

He adds: “In a way, the Finance Minister has met the demand of a large section of the middle class, particularly as more and more poor are coming into the middle class with rising incomes.”

Feb 1, 2025 2:18 PM IST

Income tax new slabs LIVE: Adani Wilmar MD on budget announcements

Income tax new slabs LIVE: "The Union Budget 2025 reflects a strong commitment to strengthening India's agricultural ecosystem, with a clear focus on enhancing productivity, promoting crop diversification, and improving post-harvest infrastructure," says Angshu Mallick, MD & CEO of Adani Wilmar.

"The focus on tax reliefs and measures aimed at increasing disposable incomes, especially for the middle class, is a positive move that will strengthen purchasing power and drive demand for quality food products," he adds.

Feb 1, 2025 2:15 PM IST

Income tax new slabs LIVE: 'Dream budget for middle class,' says Devendra Fadnavis

Income tax new slabs LIVE: Maharashtra chief minister Devendra Fadnavis says that the Union Budget 2025 is "dream budget" particularly for the middle class.

" Income Tax exemption slab has been modified and income tax exemption has been raised up to 12 Lakhs. This announcement will prove to be a milestone in India's economy... This will result in disposable income in the hands of a large section of people, there will be purchase, demand will increase, and MSME will benefit, employment will be generated. So, we will see a vast impact on the economy," Fadnavis says.

Feb 1, 2025 2:11 PM IST

Income tax new slabs LIVE: Who will pay zero tax?

Income tax new slabs LIVE:As per the budget document, those with annual salaries of 8 lakh, 9 lakh, 10 lakh, 11 lakh, and 12 lakh will not pay any taxes. Those with salaries of 16 lakh, 20 lakh, 24 lakh, and 50 lakh will pay decreased amounts.

Feb 1, 2025 2:08 PM IST

Income tax new slabs LIVE: Shashi Tharoor Union Budget announcements

Income tax new slabs LIVE: “I think frankly the applause you heard from the benches was for the middle-class tax cut. We'll look at the details and that may be a good thing. So if you have a salary you may be paying less tax. But the important question is what happens if we don't have a salary?” the Congress MP says on new income tax slabs announced in the budget. “Where is the income going to come from? For you to benefit from income tax relief, you actually need jobs,” he tells ANI.

Feb 1, 2025 2:05 PM IST

Income tax new slabs LIVE: NSE MD on new income tax slabs

Income tax new slabs LIVE: NSE MD Ashish Kumar Chauhan on new income tax slabs says: "Those with income up to 12 Lakhs have been exempted from paying tax. This is good. A little portion of the money would go towards consumption and the profitability of companies would also increase...The money that is saved can also enter the stock market through investment. So, this should be called a good Budget for the stock market."

Feb 1, 2025 2:04 PM IST

Income tax new slabs LIVE: Nitin Gadkari hails budget announcements

Income tax new slabs LIVE: Union minister Nitin Gadkari says that reforms in income tax slabs will be a massive benefit to the people of the middle class.

“Finance Minister Nirmala Sitharaman has presented a historic budget of the country. This budget has a speciality to accelerate our budget. Just like always, this time also, she has given the infrastructure sector priority - the budget for the sector has increased and it will help infra and roads,” Gadkari says. "The agriculture sector has also been given the priority. Income tax reform will be a massive benefit to the people of the middle class... This budget has encouraged the public-private partnership..."

Feb 1, 2025 1:51 PM IST

Income tax new slabs LIVE: Collections from income tax to rise 14.4%

Income tax new slabs LIVE: The government estimates that collections from income tax will rise 14.4% to 14.38 lakh cr in FY26. Corporate tax to increase 10.4% to 10.82 lakh crore, according to Budget documents.

Feb 1, 2025 1:43 PM IST

Income tax new slabs LIVE: Govt expects gross tax revenue to rise

Income tax new slabs LIVE: Gross tax revenue expected to rise to 42.70 lakh for FY26, up by 11% from the revised estimate of FY25, according to Budget documents.

Feb 1, 2025 1:29 PM IST

Income tax new slabs LIVE: Priyanka Chaturvedi on new tax slabs

Income tax new slabs LIVE: Income tax budget announcement: On budget announcements, Shiv Sena (UBT) MP Priyanka Chaturvedi tells ANI: "It's a victory of the middle class; mainly because of them (BJP in Lok Sabha elections) being limited to 240 seats. In the last 10 years, the middle class had this demand - today they have been heard and hence I welcome that (no income tax on income of up to 12 lakhs). Second thing, Bihar must be thinking if it can have an election every year..."

Feb 1, 2025 1:24 PM IST

Income tax budget announcement: Amit Shah lauds tax relief for middle class

Income tax budget announcement: Union home minister Amit Shah says that middle class is always in PM Modi’s heart.

“Zero Income Tax till 12 Lakh Income. The proposed tax exemption will go a long way in enhancing the financial well-being of the middle class. Congratulations to all the beneficiaries on this occasion,” the home minister writes on X.

Feb 1, 2025 1:19 PM IST

Income tax budget announcement: What are the new income tax slabs announced by FM

In a major announcement, Union finance minister Nirmala Sitharaman said that there will be no income tax payable for those with an income up to 12 lakh.

Under the new tax regime, the finance minister proposed a revised tax structure:

0 to 4 lakh: Nil

4 to 8 lakh: 5%

8 to 12 lakh: 10%

12 to 16 lakh: 15%

16 to 20 lakh: 20%

20 to 24 lakh: 25%

Above 24 lakh: 30%

Feb 1, 2025 1:07 PM IST

Income tax budget announcement: ‘Budget is for Viksit Bharat,’ says Jyotiraditya Scindia

Income tax budget announcement: Union minister Jyotiraditya Scindia tells ANI: “This budget is for Viksit Bharat and the PM's resolve to fulfil the dream of a new and energetic India... A new map has been drawn after having a proper study of every sector... It's a composite budget that will take India forward and not only make India self-reliant but establish it as the Vishwaguru”

Feb 1, 2025 12:56 PM IST

Income tax budget announcement: ‘Big gift for middle class,’ says Uttarakhand CM

Income tax budget announcement: "A big gift for the middle class. Under the visionary and strong leadership of respected Prime Minister Narendra Modi ji, an important decision has been taken to make the income of 12 lakh tax-free under the Union Budget 2025-26, giving a big relief to the middle class," Uttarakhand CM Pushkar Singh Dhami write on X.

Feb 1, 2025 12:44 PM IST

Income tax budget announcement: What exactly FM said about the new income tax slabs

Income Tax Budget Announcement: In a major announcement, FM Nirmala Sitharaman said that under the new tax regime, there will be zero income tax up to an annual income of 12 Lakh.

“No Income Tax payable up to an income of 12 Lakh. Slabs and rates being changed across the board to benefit all tax-payers,” the FM told the Parliament.

She further added: "...I propose to revise tax rate structures as follows: 0 to 4 Lakhs - nil, 4 Lakhs to 8 Lakhs - 5%, 8 Lakhs to 12 Lakhs - 10%, 12 Lakhs to 16 Lakhs - 15%, 16 Lakhs to 20 Lakhs - 20%, 20 Lakhs to 24 Lakhs - 25% and above 24 Lakhs - 30%. To taxpayers up to 12 Lakhs of normal income other than special rate income such as capital gains, tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them..."

Feb 1, 2025 12:32 PM IST

Income tax budget announcement: Annual limit for TDS on rent to be increased

Income Tax Slab 25-26 LIVE: The annual limit for Tax Deducted at Source (TDS) on rent will be increased from 2.40 lakh to 6 lakh, finance minister Nirmala Sitharaman announced in her budget speech.

Feb 1, 2025 12:27 PM IST

Income Tax Budget 2025 LIVE: New structure to substantially reduce taxes of middle class, says FM

Income Tax Slab 25-26 LIVE: “New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment,” the finance minister announced.

Feb 1, 2025 12:19 PM IST

Income Tax Budget 2025 LIVE: Latest tax slabs under New Tax regime

Here are the latest tax slabs under the New Tax regime as announced by FM Nirmala Sitharaman:

0-4 lakh: Nil

4-8 lakh: 5%

8-12 lakh: 10%

12-16 lakh: 15%

16-20 lakh: 20%

20-24 lakh: 25%

Above 24 lakh: 30%

Nil tax slab will apply for annual income up to 12 lakh ( 12.75 lakh for salaried taxpayers with a standard deduction of 75,000) under the new tax regime.

Feb 1, 2025 12:14 PM IST

Income Tax Budget 2025 LIVE: No income tax payable upto income of ₹12 lakh

Income Tax Budget 2025 LIVE: FM Nirmala Sitharaman announces no income tax up to income of 12 lakh

Feb 1, 2025 12:11 PM IST

Income Tax Budget 2025 LIVE: Govt's personal income tax reforms are focused on middle class, says FM

FM Nirmala Sitharaman says that the government's personal income tax reforms are focused on the middle class.

Feb 1, 2025 12:08 PM IST

Income Tax Budget 2025 LIVE: Time limit to file updated tax returns increased

Income Tax Budget 2025 LIVE: “I now propose to extend the time limit for filing updated returns for any assessment year from the current 2 years to 4 years,” says finance minister Nirmala Sitharaman.

Feb 1, 2025 12:06 PM IST

Income Tax Budget 2025 LIVE: New income tax bill will be half of the current volume

FM Sitharaman says that the new income tax bill will be half of the current volume. “It will be clear and direct in wording,” the FM adds.

Feb 1, 2025 12:04 PM IST

Income Tax Budget 2025 LIVE: FM on new income tax bill

Income Tax Budget 2025 LIVE: FM Sitharaman says that the new Income Tax Bill will be clear and direct. “It will be simple to understand for taxpayers and tax administrators,” she says.

Feb 1, 2025 12:00 PM IST

Income Tax Budget 2025 LIVE: 36 drugs to be exempted from basic customs duty

Income Tax Budget 2025 LIVE: FM Nirmala Sitharaman says that about 36 drugs for cancer and rare diseases will be exempted from the basic customs duty.

Feb 1, 2025 11:51 AM IST

Income Tax Budget 2025 LIVE: New income tax bill to be introduced next week

Finance minister Nirmala Sitharaman says that the new income tax bill will be introduced next week. She adds that the government will take forward 'trust first, scrutinise later' concept.

Feb 1, 2025 11:50 AM IST

Income Tax Budget 2025 LIVE: FM Sitharaman announces Gyaan Bharat Mission

Income Tax Budget 2025 LIVE: FM Nirmala Sitharaman says that the government will set up the Gyaan Bharat Mission for survey, documentation and conservation of manuscript heritage.

Feb 1, 2025 11:44 AM IST

Income Tax Budget 2025 LIVE: Govt to provide mudra loans to homestays, says FM Sitharaman

Finance minister Nirmala Sitharaman says that the government will develop the top 50 tourist sites in partnership with states. “The government will also provide the government to provide mudra loans to homestays, improving ease of travel and connectivity to tourist destinations,” she adds.

Feb 1, 2025 11:41 AM IST

Income Tax Budget 2025 LIVE: Govt to register gig workers on e-Shram portal

Income Tax Slab 25-26 LIVE: The government will register gig workers on e-Shram portal, announces FM Sitharaman.

“A social security scheme for welfare of online platform workers. Gig workers, of online platforms who bring dynamism to the new-age services economy, will be recognized by the government,” the finance minister says.

She adds: "They will receive identity cards and be registered on the eShram portal. They will be provided health care under the PM Jan Arogya Yojana..."

Feb 1, 2025 11:37 AM IST

Income Tax Budget 2025 LIVE: FM announces additional 75,000 seats in medical colleges

Income Tax Slab 25-26 LIVE: Finance minister Nirmala Sitharaman says that 10,000 seats will be added in medical colleges and hospitals in 2026. A total of 75,000 seats to be added gradually in the next five years.

Feb 1, 2025 11:33 AM IST

Income Tax Budget 2025 LIVE: Broadband connectivity in all govt schools, says FM Sitharaman

Income Tax Slab 25-26 LIVE: “Broadband connectivity to be provided to all government secondary schools and primary healthcare centres,” announces FM Nirmala Sitharaman in the budget speech.

Feb 1, 2025 11:31 AM IST

Income Tax Budget 2025 LIVE: Govt to set up National Institute of Food Technology in Bihar

Income Tax Slab 25-26 LIVE: Finance minister Nirmala Sitharaman says the government will set up a National Institute of Food Technology in Bihar.

“We will establish a national institute of food technology in Bihar, which will boost food processing in eastern India and generate employment for the youth,” she says.

Feb 1, 2025 11:29 AM IST

Income Tax Budget 2025 LIVE: Govt to enhance credit guarantee cover for MSMEs, says FM

Income Tax Slab 25-26 LIVE: The government plans to enhance credit guarantee cover for MSMEs to improve credit access, FM Sitharaman says. “Credit guarantee cover to be doubled to 20 crore, guarantee fee moderated to 1%,” she adds.

Feb 1, 2025 11:23 AM IST

Income Tax Budget 2025 LIVE: FM Sitharaman's announcement on India Post

Income Tax Slab 25-26 LIVE: FM Sitharaman says that India Post will be transformed into a large public logistic organisation. About 1.5 lakh rural post offices will become a catalyst for the rural economy, she says.

Feb 1, 2025 11:21 AM IST

Income Tax Budget 2025 LIVE: FM announces 5-year mission to increase cotton production

Income Tax Slab 25-26 LIVE: FM Sitharaman has announced a five-year mission to increase the country's cotton production. “The best scientific support will be provided to farmers and it'll ensure a steady supply of cotton used in the textile sector,” the finance minister says.

Feb 1, 2025 11:18 AM IST

Income Tax Budget 2025 LIVE: Govt to launch 6-year program with focus on pulses

FM Sitharaman says that the government will launch a 6-year program for “Atamnirbharta” in pulses with a special focus on tur, urad, and masoor.

Feb 1, 2025 11:14 AM IST

Income Tax Budget 2025 LIVE: FM Sitharaman announces PM Dhan Dhyan Krishi Yojana

Income Tax Slab 25-26 LIVE: In her budget speech, FM Sitharaman announces PM Dhan Dhyan Krishi Yojana. The scheme will cover 100 districts with low yields, modern crop intensity and below-average credit parameters, she says, adding that it'll benefit around 1.7 crore farmers.

Feb 1, 2025 11:12 AM IST

Income Tax Budget 2025 LIVE: ‘Viksit Bharat will have zero poverty,’ says finance minister

Income Tax Slab 25-26 LIVE: “Viksit Bharat will have zero poverty, quality education, high-quality, affordable and comprehensive healthcare,” says FM Sitharaman in Budget speech.

Feb 1, 2025 11:09 AM IST

Income Tax Budget 2025 LIVE: Govt's focus on 10 broad areas, says FM Sitharaman

Income Tax Slab 25-26 LIVE: “In the budget, the government is focused on 10 broad areas, focusing on agriculture, manufacturing, employment, MSMEs, uplifting rural areas, and innovation. This budget aims to work on transformative reforms,” says FM Nirmala Sitharaman in budget speech.

Feb 1, 2025 11:07 AM IST

Income Tax Budget 2025 LIVE: India among major growing economies, says FM Nirmala Sitharama

Income Tax Slab 25-26 LIVE: Finance minister Nirmala Sitharaman says that India is among the major growing economies in the world. Quoting a Telugu poet, the FM says the government is focused on health care, education and agriculture.

Feb 1, 2025 11:03 AM IST

Income Tax Budget 2025 LIVE: FM Nirmala Sitharaman begins Budget speech

Income Tax Slab 25-26 LIVE: Union finance minister Nirmala Sitharaman has started her Budget speech amid sloganeering from Opposition.

Feb 1, 2025 11:01 AM IST

Income Tax Budget 2025 LIVE: Lok Sabha begins

Income Tax Slab 25-26 LIVE: The Lok Sabha has convened. Union finance minister will shortly present the Union Budget 2025.

Feb 1, 2025 10:52 AM IST

Income Tax Budget 2025 LIVE: FM Sitharaman to present Union Budget shortly

Income Tax Slab 25-26 LIVE: Union finance minister Nirmala Sitharaman will present the Union Budget in the Parliament shortly.

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