Sun Feb 02 23:02:10 UTC 2025: ## New Tax Regime Sweetens Deal for Most Earners in Union Budget 2025
**New Delhi** – The Union Budget 2025 significantly sweetens the pot for most taxpayers with its revised income tax slabs under the new tax regime. A significant ₹60,000 rebate for income up to ₹12 lakh (₹12.75 lakh for salaried individuals) under Section 87A makes the new regime far more attractive than the old system, according to reports.
The old tax regime, with its 5%, 20%, and 30% slabs and allowance for tax-saving investments, now pales in comparison. The Finance Ministry has long advocated for separating investment and tax liabilities, empowering taxpayers to make choices based on individual circumstances.
While the old regime offers deductions for tax-saving investments and house rent allowance, analysis indicates that the new regime provides greater benefits for those earning up to ₹12 lakh (₹12.75 lakh for salaried individuals), even when maximizing deductions under the old system. Experts note that it’s highly improbable for individuals earning at the higher end of this bracket to fully utilize all available deductions simultaneously.
The budget changes are expected to simplify tax planning for a large segment of the population and potentially boost disposable income.
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