Income Tax Slabs: The government has increased the tax exemption limit by Rs 5 lakh in this budget. In 2023-2024, the government had exempted those earning Rs 7 lakh annually from tax, now this limit has been increased to Rs 12 lakh.
Income Tax Slabs: Finance Minister Nirmala Sitharaman has given a big relief to the middle class in the budget on Saturday (February 1, 2025). The deadline for ITR has been extended, huge tax exemption has been given and a big good news has also been given to the elderly. Now those earning Rs 1 lakh per month will not have to pay any tax. The government has increased the tax exemption limit by Rs 5 lakh in this budget. In 2023-2024, the government had exempted those earning Rs 7 lakh annually from tax, now this limit has been increased to Rs 12 lakh per year.
Five big announcements of Nirmala Sitharaman for income tax-
No tax for those earning Rs 1 lakh per month
The middle class has got a big relief from the government’s announcement on income tax. Now even those earning Rs 1 lakh per month will not have to pay any tax. Earlier this limit was up to about Rs 60 thousand per month, which has been increased by Rs 40 thousand. In the budget for 2023-24, the government had set the tax exemption limit at Rs 7 lakh per annum, whereas before that the limit was Rs 5 lakh per annum in 2019, Rs 2.5 lakh in 2014, Rs 2 lakh in 2012 and Rs 1 lakh per annum in 2005.
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Tax slab
The tax slab has also been revised. Those earning Rs 12 lakh annually will not have to pay any tax, but those earning more than that will have to pay tax as per the slab given below-
Up to Rs 4 lakh: 0% tax
Rs 4 lakh to Rs 8 lakh: 5% tax
Rs 8 lakh to Rs 12 lakh: 10% tax
Rs 12 lakh to Rs 16 lakh: 15% tax
Rs 16 lakh to Rs 20 lakh: 20% tax
Rs 20 lakh to Rs 24 lakh: 25% tax
Above Rs 24 lakh: 30% tax
ITR deadline extended
Nirmala Sitharaman has extended the deadline for those filing ITR-TDS. Now you can file income tax returns for four years, earlier you had to file ITR in one year.
TDS limit increased
The government has increased the limit of TDS to Rs 10 lakh, while the limit of TDS on rent has been increased from Rs 2 lakh 40 thousand to Rs 6 lakh. Nirmala Sitharaman said that the limit of Tax Collection at Source (TCS) and Liberalized Remittance Scheme (LRS) has been increased from Rs 7 lakh to Rs 10 lakh. TCS is the tax that the shopkeeper takes from the buyer at the time of sale. Under the LRS scheme, Indians are allowed to send money abroad for various purposes.
Tax exemption for the elderly
The exemption limit for the elderly has been doubled. Now senior citizens will not have to pay any tax up to Rs 1 lakh, earlier this limit was Rs 50 thousand.
