Salaried individuals are likely to benefit from a simplified tax structure and higher rebates under the revised Income Tax Bill, 2025, presented in Parliament by Finance Minister Nirmala Sitharaman.
The Bill retains the new regime tax slabs announced in Budget 2025, offering reduced rates across income brackets:
- Up to ₹4 lakh – Nil
- ₹4,00,001 to ₹8,00,000 – 5%
- ₹8,00,001 to ₹12,00,000 – 10%
- ₹12,00,001 to ₹16,00,000 – 15%
- ₹16,00,001 to ₹20,00,000 – 20%
- ₹20,00,001 to ₹24,00,000 – 25%
- Above ₹24,00,000 – 30%
The Section 87A rebate has been significantly enhanced for taxpayers under the new regime. Those earning up to ₹12 lakh can receive a rebate of up to ₹60,000, with a tapering benefit for incomes slightly above this threshold.
Additional relief includes:
- Clearer rules for deductions, ensuring the standard 30% deduction is applied after municipal taxes.
- Extension of full commuted pension deduction to non-employees, aligning their benefits with those of salaried retirees.
Tax experts say these revisions aim to make compliance easier and to leave more disposable income in the hands of middle-class families.
Read More: Revised Income Tax Bill 2025 Brings Major Relief For Property Owners
Amit Sharma is the Content Editor at JurisHour. He has been writing about the Indian legal market. He has covered tax & company litigation stories from the Supreme Court, High Courts and Various Tribunals. Amit graduated from MLSU Law College with B.A.LL.B. and also holds an LL.M. from MLSU, Udaipur, Rajasthan. An Advocate in Taxation, and practised in Tribunals as well as Rajasthan High Court and pursued Masters in Constitutional Law. He started out small with little resources but a big plan to take tax legal education to the remotest locations across India and eventually to the world. His vision is to make tax related legal developments accessible to the masses.
