What's Your Tax As Per New Tax Regime? Simple Calculations Explained

Union Budget 2025: The Union Budget 2025 has made a mark in easing the financial burden for taxpayers. Finance Minister Nirmala Sitharaman ’s proposed tax cuts are set to benefit not just individuals with taxable incomes of Rs 12 lakh who will receive a full rebate, but also those with incomes ranging from Rs 13 lakh to Rs 25 lakh.

How the new tax rates could make a difference

The Union Budget 2025 introduces notable tax relief for individuals across various income levels, with reductions in tax payable for those earning between Rs 13 lakh and Rs 25 lakh. For instance, someone earning Rs 13 lakh will see a tax reduction of Rs 25,000, lowering their tax from Rs 1 lakh to Rs 75,000.

Similarly, those with Rs 14 lakh income will save Rs 30,000, as their tax falls from Rs 1,20,000 to Rs 90,000. As income rises, the benefits continue: a Rs 15 lakh earner will save Rs 35,000, a Rs 16 lakh earner Rs 50,000, and a Rs 17 lakh earner Rs 60,000.

For individuals with Rs 18 lakh income, the saving reaches Rs 70,000, while those earning Rs 19 lakh will enjoy an Rs 80,000 tax cut. A Rs 20 lakh income will result in a Rs 90,000 reduction, and for those with Rs 21 lakh, Rs 95,000 will be saved.

The tax cuts continue for higher income brackets, with those earning Rs 22 lakh saving Rs 1 lakh, Rs 23 lakh earners saving Rs 1,05,000, and those with Rs 24 lakh and Rs 25 lakh incomes saving Rs 1,10,000.

The new tax regime is a breath of fresh air for middle and high-income earners. By easing the financial burden, these measures could potentially boost consumer spending and save taxpayers from the usual financial stress. Whether it's investing more in savings schemes or spending on essentials, this tax relief can help taxpayers better manage their hard-earned money.