Budget 2025: Key Highlights and Income Tax Updates
Finance Minister Nirmala Sitharaman presented the Union Budget 2025 in Parliament today. The budget includes several important announcements, including potential income tax relief for the common citizen. This budget presentation also reminds everyone to file their income tax returns based on the changes from the previous budget (2024-25).
Income Tax Filing for 2024-25
Taxpayers need to consider the relevant details to file their income tax returns correctly this year. To make tax filing easier and more efficient, taxpayers can use an income tax calculator. It’s always best to be prepared early to avoid last-minute issues and maximize tax savings. Why pay more tax than you have to when you can save that money?
Tax-Saving Investments
Taxpayers should look into tax-saving investment options, such as those under Section 80C & 80CCD(1B). The government offers several benefits to income tax payers, like HRA exemption, mediclaim policy for themselves and their parents, home loan interest deductions, and education loan interest deductions.
Income Tax Calculator
You can calculate your current income tax status and figure out what else you might need to do using an [[income tax calculator]]. You can check your income tax for the fiscal year 2024-25 under both the New and Old Income Tax Regimes.
Changes in Personal Income Tax under New Tax Regime (Budget 2024)
Several key changes were made to the New Tax Regime in the 2024 budget:
* Standard deduction for salaried employees was increased from Rs 50,000 to Rs 75,000.
* Deduction on family pension for pensioners was enhanced from Rs 15,000 to Rs 25,000.
Revised Income Tax Rate Structure (New Regime)
* 0-3 lakh rupees – Nil
* 3-7 lakh rupees – 5%
* 7-10 lakh rupees – 10%
* 10-12 lakh rupees – 15%
* 12-15 lakh rupees – 20%
* Above 15 lakh rupees – 30%
Salaried employees under the new tax regime can potentially save up to Rs 17,500 in income tax.
Plan and Save on Taxes
With Budget 2025 presented, it’s a good time to understand the latest tax implications and plan your finances accordingly. Use online resources and tools to help you navigate the tax landscape effectively and maximize your savings.
