Finance Minister Nirmala Sitharaman announced revised tax slabs and rates under the new regime to reduce the burden for all taxpayers. There will be no tax burden on up to Rs 12 lakh annual income, except special income. The revised slabs will benefit those earning more than that from the next financial year.
People on social media have welcomed the Centre's decision to reform the tax structure with memes, while some users have posted questions amid confusion over how much will taxpayers save after the changes.
Under the new regime, there is no tax on income up to Rs 12 lakh, and no tax on income up to Rs 12.75 lakh for salaried people, due to the standard deduction of Rs 75,000.
How People Reacted To the Centre's Decision:
No income tax upto 12 lacs
— Sagar (@sagarcasm) February 1, 2025
Working Class right now: pic.twitter.com/vWT8u3dvji
Amid confusion over tax breaks and revised tax structure, a user posted simplified the changes and said, "If income upto 12 lacs, taxes will be calculated as per stated slabs but whatever tax comes will be offset via rebate u/s 87 A."
For Curious Folks - SIMPLIFIED 📢
— The Khel India (@TheKhelIndia) February 1, 2025
➡️ If income upto 12 lacs, taxes will be calculated as per stated slabs but whatever tax comes will be offset via rebate u/s 87 A.
HENCE NO TAX!
➡️ If income is above 12 lacs, rebate will not be available hence tax starting as per slab rates https://t.co/doLyXll72I pic.twitter.com/yP8aanzYPj
"If income is above 12 lacs, rebate will not be available hence tax starting as per slab rates."
Explainer on the new tax scheme. If your income is 12 lakh no income tax. If your income is more than that,see below. #IncomeTax pic.twitter.com/isK4wVtPJS
— Sumanth Raman (@sumanthraman) February 1, 2025
The new structure will substantially reduce taxes on the middle class and leave more money in their hands, boosting household consumption, savings and investment, the government said.
What Domain Experts Say
Domain experts have said the decision is in "the right direction to incentivize taxpayers" and will provide greater disposable income for the middle class.
"The Budget has raised the tax exemption limit to 12 lakhs and has also revised & rationalized the slab rate structure under the new tax regime. This is clearly the right direction to incentivize taxpayers as we gradually adopt the new regime. Also, this will significantly push the disposable incomes into the hands of the middle-class salaried taxpayers. This will go a long way in driving consumption across sectors especially real estate in the affordable and mid-segment," Vimal Nadar, Head of Research at Colliers India, said.
"With the new provisions, there will be no tax liability on income up to Rs 12 lakh, leading to substantial savings for taxpayers. Additionally, the revised tax slab rates have been structured to provide further benefits, ensuring greater disposable income for the middle class. As the backbone of the Indian economy, this move is expected to drive consumption and further boost economic growth," Nitin Baijal, Executive Director, Deloitte India, said.
"The finance minister acknowledged the admirable energy and ability of the middle class in nation-building and recognizing their contribution towards nation-building, proposed a substantial increase in the tax exemption threshold for individuals opting for the new tax regime. Under this change, individuals who are residents in India can claim rebates and are effectively not required to pay taxes if their total income is up to INR12 lakhs. This is applicable if they do not have any other income that is subject to special rates (for example capital gains)," Sudhakar Sethuraman, Partner, Deloitte India said.
Income Tax India posted an FAQ on X, answering questions related to the changes to the New Tax regime structure.
Stay updated on the proposals related to direct taxes in #Budget2025. Our FAQs provide insights into key amendments and their impact.
— Income Tax India (@IncomeTaxIndia) February 1, 2025
Read here the FAQs providing insights into the changes related to Direct Taxes.https://t.co/7af0p6lDf8@nsitharamanoffc @officeofPCM…
Several users have called it a "super" decision by the government to ease the tax burden on the middle class. CRED Founder Kunal Shah said, "New income tax limits could cause big jump in Gen Z consumption spends."
New income tax limits could cause big jump in Gen Z consumption spends.
— Kunal Shah (@kunalb11) February 1, 2025
No income tax payable on income up to Rs 12 lakh - is HUGE. This COULD have a massive implication for the economy - not just giving relief to the common taxpayer who was feeling crushed - but also to revive the economy from the slump it is in.
— The DeshBhakt 🇮🇳 (@TheDeshBhakt) February 1, 2025
For years economists have been…
A taxpayer in the new regime with an income of Rs 12 lakh will get a benefit of Rs 80,000 in tax (which is 100 per cent of tax payable as per existing rates).
from NDTV News- Topstories https://ift.tt/B0zMgaj
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