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In a great comfort for the middle class, Finance Minister Nermalla Setharmann announced on Saturday in the Federation’s budget 2025 that individuals with an annual income of up to 12 rupees of Cham will not have to pay any income tax – provided that they choose the new tax system. This important review, which is part of the government’s efforts to reduce the tax burden on individuals with wages, represents a sharp increase in the previous threshold of the 7 -commissioned tax.
How does this benefit work?
The Ministry of Finance explained that this tax commitment applies only under the new tax system, which has been virtual since 2023. To benefit from benefit, individuals simply need to submit the approval of the income tax (ITR) – there are no additional steps required.
In the past, it was possible for an individual to get 12 rupees per year per year about 80,000 rupees in the income tax under the new system. With the revised panels, this tax burden is now reduced to zero, provided that the ITR taxpayer files are now to demand a deduction.
Who benefits from this change?
The government estimates that the taxpayers, who were paying earlier, were paying taxes ranging from 20,000 rupees to 80,000 rupees, will now enjoy the zero tax responsibility at an income of up to 12 rupees of Cham. This change is expected to benefit from a large portion of the owners of the middle class, which reduces financial pressure amid the high cost of living.
Standard discount
The budget also maintains the standard deduction of 75,000 rupees under the new system. This means that individuals arranged with a total income of up to 12.75 rupees of Cham (before applying the standard discount) will actually fall into a tax -free segment. In simpler phrases, if your income before the discounts is 12.75 rupees for Cham, you will remain qualified for the summary of the summary after standard customization.
Main meals
Income reaches 12 Rs.
Standard discount: 75,000 rupees, and pay the effective tax -exempt to 12.75 rupees for taxpayers for payment
ITR File: Combine to demand a discount – there are no additional papers required
Impact: It will now provide about one of the taxpayers between 20,000 rupees to 80,000 rupees annually
As of the evaluation year 2024-25, it was presented about 8.75 ITRS rupees. All those who choose the new tax system will benefit directly from this review, making the budget 2025 a pivotal moment for the middle -class taxpayers in India.
