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Income-tax calculator: How is ₹10-20 lakh salary taxed in the new regime, what may change in Budget 2025?
4 min read | Updated on January 23, 2025, 15:59 IST
SUMMARY
Budget 2025 income tax expectations: The finance minister may consider increasing the basic exemption limit under the new regime to ₹5 lakh from ₹3 lakh available currently, according to tax experts. Further, it is also expected that the finance minister may increase the scope of tax rebate under section 87A to make income up to ₹10 lakh tax-free effectively.
Total tax liability on income of ₹15 lakh under the new regime is ₹1.3 lakh for FY 2024-25. Representational image/Shutterstock
Income-tax on ₹10 lakh salary under new tax regime
The tax breakup is shown in the following table:
| Gross total income | ₹9,25,000 |
|---|---|
| Total taxable Income | ₹9,25,000 |
| Income tax slab | ₹7,00,001 - ₹10,00,000 |
| Tax payable after rebate/surcharge | ₹42,500 |
| Final tax payable (Includes health and education cess) | ₹44,200 |
Income-tax on ₹15 lakh salary under the new tax regime
The calculator shows that total tax liability on income of ₹15 lakh under the new regime is ₹1.3 lakh for FY 2024-25. This calculation done after including the standard deduction of ₹75,000 available to salaried employees and assuming no other deductions are available to the person.
| Gross total income | ₹14,25,000 |
|---|---|
| Total taxable Income | ₹14,25,000 |
| Income tax slab | ₹12,00,001 - ₹15,00,000 |
| Tax payable after rebate/surcharge | ₹1,25,000 |
| Final tax payable (Includes health and education cess) | ₹1,30,000 |
Income-tax on ₹20 lakh salary under the new tax regime
The calculator shows that total tax liability on income of ₹20 lakh under the new regime is ₹2.78 lakh lakh for FY 2024-25.
| Gross total income | ₹19,25,000 |
|---|---|
| Total taxable Income | ₹19,25,000 |
| Income tax slab | >= ₹15,00,001 |
| Tax payable after rebate/surcharge | ₹2,67,499 |
| Final tax payable (Includes health and education cess) | ₹2,78,199 |
The above calculation has been done after including the standard deduction and assuming no other deductions are applicable to the person.
What’s expected from Budget 2025
Apart from the above, media reports have speculated some other ways the government is considering for providing tax relief.
Meanwhile, a Business Standard report has said the government may introduce a new 25% tax slab for income between ₹15 lakh and ₹20 lakh.
Please note the above are only the expected changes from the upcoming budget. The actual change, if any, will be revealed on February 1, 2025. Additionally, any change in tax slabs announced in Budget 2025 will be applicable for tax filing for FY 2025-26.
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