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
