Sun Feb 02 10:59:24 UTC 2025: **New Tax Regime Brings Significant Savings for Salaried Employees in India**

**Mumbai, February 2, 2025** – India’s new income tax regime, announced in Union Budget 2025-26, is set to deliver substantial tax benefits to salaried individuals, according to calculations by CA Dr. Suresh Surana. The changes, effective for the Financial Year 2025-26 (Assessment Year 2026-27), include revised tax slabs and a continued ₹75,000 standard deduction.

These revisions effectively make salaries up to ₹12.75 lakh tax-free for those opting for the new regime. Dr. Surana’s analysis indicates savings ranging from 26.35% for individuals earning ₹25 lakh annually to 30.12% for those earning ₹18 lakh, when compared to the previous new tax regime rates. While the old tax regime remains unchanged, the government anticipates a ₹1 lakh crore loss in direct tax revenue as a result of these cuts.

The calculations presented are based on salary income, standard deduction, and cess, but exclude other income sources and deductions. While offering significant relief to salaried employees, the impact on government revenue will be closely monitored.

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