Budget 2025: Here's What Experts Think About The New Tax Slabs And Benefits

The budget announcement came as a relief for taxpayers as part of the Union Budget 2025. Finance Minister Nirmala Sitharaman on Saturday said that there will be no income tax payable up to the income of Rs 12 lakh. The rebate goes up to Rs 12.75 lakh, which is the biggest tax relief for India's middle class since 1997.

Now, here's what experts think about the benefit boost on the new tax regime and the outlook on these changes.

"The hike in the tax slabs that has happened in quick succession is a welcome move for the middle class. While they rejoice on this news, one has to understand that these slabs are for those taxpayers opting for the new regime. I am happy that these slabs under the new regime have brought the 25% tax-rate slab back and this will help the higher income earners also get some benefit on their taxes," said Arvind Rao, founder of Arvind Rao and Associates.

"With these changes and the new bill on its way over a week's time, the reading is only getting clearer that the new regime will rule the slabs. The almost 70% jump in the slab for the rebate is poised to help a lot of taxpayers across the country," he said.

Finance Minister Nirmala Sitharaman has announced there will now be no income tax payable for up to Rs 12 lakh per annum income. Up to Rs 12.75 lakh will be exempt with a standard deduction.

"Lower income tax rates are appealing, especially for those in lower income brackets, thereby boosting consumption levels and positively impacting GDP. Potentially easier compliance and straightforward tax filing. Will reduce burden on CA's," said Vinit Iyer, managing director of Prudeno Wealth Advisors.

"The new regime is made substantially attractive even to high-income earners, thereby paving a way for the gradual death of the old regime system," he added.

Sitharaman made the announcement while presenting the Union Budget 2025 on Feb. 1. There will be no tax for income from Rs 0 to Rs 4 lakh, 5% tax for income at Rs 4 lakh to 8 lakh and 10% tax for income up to Rs 8 lakh to Rs 12 lakh.

There will be 15% tax for income of Rs 12 lakh to Rs 16 lakh and 20% for income of Rs 16 lakh to Rs 20 lakh. There will be a 25% tax on income of Rs 20 lakh to Rs 24 lakh. Any income above Rs 24 lakh will be taxed at 30%.