Individuals can save up to Rs 1.10 lakh in taxes as Budget rejigs I-T slabs under new regime

New Delhi, Feb 1 (PTI) Individuals having an annual income of Rs 24 lakh or more can hope to save of Rs 1.10 lakh in income tax, while those earning Rs 12 lakh will have to pay no tax, benefiting to the tune of Rs 80,000 from next fiscal under the new regime.

Finance Minister Nirmala Sitharaman in her Budget exempted, from income tax, persons earning up to Rs 12 lakh per annum and rejigged the tax slabs under the new tax regime.

As per government calculations, people with income of Rs 13 lakh a year will save Rs 25,000 on tax liability.

Similarly, persons having annual income of Rs 14 lakh will save Rs 30,000, Rs 15 lakh (Rs 35,000), Rs 16 lakh (Rs 50,000), Rs 17 lakh (Rs 60,000).

In case of income of Rs 18 lakh the savings would be Rs 70,000, Rs 19 lakh (Rs 80,000), Rs 20 lakh (Rs 90,000).

Those earning Rs 21 lakh will stand to save Rs 95,000 in their tax liability, Rs 22 lakh (Rs 1 lakh), Rs 23 lakh (Rs 1.05 lakh crore).

For those earning over Rs 24 lakh, can look forward to a tax benefit of Rs 1.10 lakh.

Sitharaman, in her 2025-26 Budget proposed new tax slabs under which people earning up to Rs 12 lakh will pay Nil tax. For salaried class, this limit could go up to Rs 12.75 lakh per annum after taking into account standard deduction of Rs 75,000.

For those with income of more than Rs 12 lakh and filing ITR under new tax regime, Budget has revised the tax slabs for computing tax liability on income earned in 2025-26 fiscal. Under the new slab, income up to Rs 4 lakh will be exempt. A 5 per cent tax will be levied for income earned between Rs 4 and 8 lakh, 10 per cent for Rs 8-12 lakh, 15 per cent for Rs 12-16 lakh.

A 20 per cent income tax will be levied on income between Rs 16 and 20 lakh, 25 per cent on Rs 20-24 lakh and 30 per cent above Rs 24 lakh per annum.