No Tax on ₹12.75 Lakh Income? Here’s the Budget 2025 Secret!
Budget 2025: Huge Tax Relief for Salaried Individuals!
The Indian government has announced a massive tax benefit under the new tax regime. If you earn up to ₹12.75 lakh annually, you could pay zero tax! But how is this possible when tax slabs show a 5% tax from ₹4 lakh? Let’s decode this tax-saving hack!
New Tax Slabs Under Budget 2025
The latest tax slabs under the new regime are:
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
How Section 87A Makes Your Tax Zero
Section 87A now offers an enhanced rebate of ₹60,000. Here’s how someone earning ₹12.75 lakh can pay zero tax:
- Gross Income: ₹12,75,000
- Standard Deduction: ₹75,000
- Taxable Income: ₹12,00,000
Tax Calculation:
| Income Slab (₹) | Tax Rate | Tax Amount (₹) |
| 0 – 4,00,000 | Nil | 0 |
| 4,00,001 – 8,00,000 | 5% | 20,000 |
| 8,00,001 – 12,00,000 | 10% | 40,000 |
| Total Tax Before Rebate | 60,000 | |
| Rebate Under 87A | -60,000 | |
| Final Tax Payable | ₹0 |
Key Takeaways
- The rebate applies only under the new tax regime.
- If taxable income exceeds ₹12 lakh, the rebate is not available.
- Special income sources like capital gains do not qualify.
Did You Know?
The ₹60,000 rebate under Section 87A is the highest ever tax relief for salaried individuals in India!
