Sat Feb 01 06:40:00 UTC 2025: ## Big Tax Breaks in Budget 2025: Zero Tax Up to ₹12 Lakh, Lower Rates for Higher Earners
**New Delhi** – Finance Minister Nirmala Sitharaman unveiled significant income tax changes in the Budget 2025, offering substantial relief to a broad range of taxpayers. The most significant change is the increase in the income tax rebate limit to ₹12 lakh. This means individuals earning up to ₹12 lakh will pay zero income tax under the new tax regime.
While this eliminates tax liability for those earning up to ₹12 lakh, it’s crucial to understand that the rebate only applies to incomes at or below this threshold. Those earning even slightly more will be taxed according to the applicable slab rates. For example, someone earning ₹12.1 lakh will face a tax liability.
However, the benefits extend to higher earners as well. The government has significantly lowered tax rates for incomes between ₹15 lakh and ₹24 lakh. The top 30% tax bracket now only applies to income exceeding ₹24 lakh. Incomes between ₹12 lakh and ₹16 lakh will be taxed at 15%, between ₹16 lakh and ₹20 lakh at 20%, and between ₹20 lakh and ₹24 lakh at 25%. This change could result in savings of up to ₹1.1 lakh for individuals earning over ₹24 lakh.
The changes aim to boost disposable income and stimulate economic activity. The government anticipates these measures will provide substantial relief for a large segment of the population.
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