Current Income Tax Rates and Slabs: All About Taxation System Under Old and New Regimes Amid Growing Anticipation of Tax Cuts in Union Budget 2025
As the Union Budget 2025 approaches, taxpayers are closely watching the potential changes in income tax slabs and rates under the Old and New Tax Regimes, amid expectations of tax cuts, particularly for the middle class.
Mumbai, January 28:슬롯 머신 사이트 추천With just a few days left until Budget 2025, taxpayers across India are eagerly awaiting potential changes in the income tax slabs and the possibility of tax cuts. Finance Minister Nirmala Sitharaman is set to present the Union Budget on February 1, with expectations of relief for middle-class taxpayers. A major focus is on revising the current income tax structure, which includes the Old Income Tax Regime (OTR) and the New Income Tax Regime (NTR). While the NTR offers simplified tax rates, the OTR allows for various deductions and exemptions that can help reduce taxable income, hence making it more appealing to taxpayers.
The government has been under pressure to make the New Tax Regime more attractive, especially for salaried individuals who may benefit from lower tax rates. With the growing shift towards the NTR, many expect further revisions that could potentially phase out the Old Tax Regime over time. Tax experts suggest that in Budget 2025, Finance Minister Sitharaman might introduce adjustments to these regimes, including possible increases in the standard deduction and restructured income tax slabs. Scroll below to learn about the taxation system under Old and New regimes슬롯 머신 사이트 추천amid growing anticipation of tax cuts in Union Budget 2025.슬롯 머신 사이트 추천Income Tax Cut for Middle Class in Union Budget 2025-26? Report Says Government May Slash Tax Rates for Those Earning up to INR 15 Lakh.
Income Tax Slabs and Rates Under Old슬롯 머신 사이트 추천Tax Regime
Under the Old Tax Regime (OTR), taxpayers can claim various exemptions and deductions, including those for housing rent and insurance premiums, making it ideal for individuals with significant expenses in these areas. The tax rates under this regime are structured progressively:
- 5% for income between INR 2.5 lakh and INR 5 lakh
- 20% for income between INR 5 lakh and INR 10 lakh
- 30% for income above INR 10 lakh Additionally, individuals above 60 years of age enjoy higher exemption limits, and there are provisions for rebates and deductions that can reduce the taxable income further.슬롯 머신 사이트 추천What Is the Current Income Tax Rate in India? Ahead of Budget 2024-25, Know Income Tax Slabs, Rates Under Old and New Regimes.
Income Tax Slabs and Rates Under New Tax Regime
In contrast, the New Tax Regime (NTR), introduced in 2020, offers lower tax rates but does not allow exemptions or deductions. This regime is designed to simplify tax filing and make it more straightforward for taxpayers. The tax rates under the NTR are as follows:
- 5% for income between INR 3 lakh and INR 7 lakh
- 10% for income between INR 7 lakh and INR 10 lakh
- 20% for income between INR 12 lakh and INR 15 lakh
- 30% for income above INR 15 lakh The NTR is currently the default system, and taxpayers need to opt for the OTR by filing a form. Although this regime does not offer deductions, it may benefit individuals without significant exemptions or expenses.
As the Budget 2025 approaches, discussions around income tax reform continue to dominate, with growing anticipation of potential changes to the existing tax slabs and rates. The introduction of the New Tax Regime has already simplified the process for many, but the Old Tax Regime still offers advantages for those claiming exemptions and deductions.
(The above story first appeared on LatestLY on Jan 28, 2025 03:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).