New Tax Regime 2025 Updates: budget 2025 highlights

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduced crucial reforms aimed at benefiting the middle class, enhancing economic growth, and simplifying the taxation system. The budget focused on tax relief, infrastructure development, and agricultural growth, making it a significant step toward economic stability.

Table of Contents

Budget 2025 Highlights: Major Announcements

Revised Income Tax Slabs for FY 2025-26

The government has revised the income tax structure to provide greater relief to taxpayers. One of the most notable changes is the increase in the tax exemption threshold, allowing individuals earning up to ₹12.8 lakh per annum to pay no income tax. The new income tax slabs under the revised tax regime are:

Standard Deduction and Rebate Under New Regime

The standard deduction has been increased, providing additional relief for salaried individuals.
The rebate under Section 87A has been raised, ensuring that individuals earning up to ₹12.75 lakh will not have to pay any tax.

Old vs. New Tax Regime: Which One to Choose?

The revised tax regime offers simplified tax slabs with limited exemptions, while the old tax regime continues to provide deductions under various sections like 80C, 80D, and HRA. Taxpayers must carefully evaluate their options using an income tax calculator to determine the most beneficial regime based on their financial profile.

Additional Budget 2025 Highlights

Agricultural Development: The government has introduced new programs to enhance crop yield and provide credit support to farmers.
Infrastructure Investment: Increased allocation for highways, railways, and urban development projects.
Direct Tax Reforms: A new Income Tax Bill is in the pipeline to simplify tax compliance.

How to Calculate Your Taxes Under the New Regime?

Taxpayers can use a new tax regime calculator to estimate their tax liability under the revised slabs. The income tax calculator for AY 2025-26 will help individuals assess whether the old or new tax regime is more beneficial.

Final Thoughts

The Union Budget 2025 aims to strengthen economic growth by reducing the tax burden on the middle class and enhancing spending power. The introduction of revised tax slabs, increased rebates, and deductions is expected to boost consumption and improve financial stability for millions of Indians. Taxpayers should carefully analyze the benefits of both tax regimes before making a choice.

For more details, refer to the official Budget 2025 PDF Here or visit Here.