5 Income Tax Changes to Save More Money in 2025
As 2024 ends, Indian taxpayers should gear up for new income tax rules. These updates will directly affect your financial planning for the year ahead. Here’s what’s changing and how you can benefit:
1. Revised Tax Slabs: Bigger Savings Await!
The government has revamped income tax slabs under the new regime. These changes provide higher savings, especially for middle-income groups.
| Income Range (₹) | Old Tax Rate | New Tax Rate |
|---|---|---|
| Up to ₹3,00,000 | 0% | 0% |
| ₹3,00,001 – ₹6,00,000 | 5% | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% | 15% |
| Above ₹12,00,000 | 30% | 25% |
Tip: With reduced rates for higher incomes, plan to stay under ₹12 lakh to save more.
2. Higher Deductions for Salaried Individuals
If you’re salaried or receive a family pension, you’ll love this update:
| Category | Old Limit (₹) | New Limit (₹) |
| Salaried Individuals | 50,000 | 75,000 |
| Family Pensioners | 15,000 | 25,000 |
This directly reduces your taxable income, increasing your net savings.
3. Corporate NPS Gets a Boost
Under Section 80CCD(2), employer contributions to NPS have a higher deduction limit—now 14% instead of 10%. Private-sector employees can save more for retirement while reducing their tax outgo.
Did You Know? India has one of the lowest long-term capital gains tax rates compared to major economies.
Final Takeaway
Stay informed and revise your tax strategies for 2025. These changes offer more opportunities to save and invest wisely
