Know Your Income Tax: What will be your tax liability on salary of Rs 7.50 lakh, Rs 15 lakh, Rs 22.5 lakh or Rs 30 lakh?

Revenue Tax Calculations for New vs Outdated Tax Regime: The proposed new tax regime is all set to return into impact on April 1, 2025.

The brand new system shall be relevant for the monetary yr 2025-26.

For the present monetary yr (2024-25), taxpayers can file their return as per the outdated tax regime and the prevailing new tax regime.

The ITR submitting can probably begin in June.

Although the prevailing tax regime is the default regime for brand new taxpayers, they will nonetheless swap to any regime between the outdated and the brand new.

However no matter tax regime you go for this monetary yr or the subsequent monetary yr, are you aware your revenue tax legal responsibility for annual incomes of Rs 7.50 lakh, Rs 13 lakh, Rs 15 lakh, Rs 22.5 lakh, Rs 30 lakh, and Rs 37.5 lakh?

Let’s learn the article to know!

Present new tax regime

Within the current tax regime, tax begins from the Rs 3 lakh revenue slab.

After a tax rebate of Rs 25,000 beneath Part 87A, revenue as much as Rs 7 lakh is tax-free for resident people (not relevant for NRIs).

A regular deduction of Rs 75,000 is relevant for salaried people, rising their tax-free restrict by the identical quantity.

Taxpayers have to pay 15 per cent tax on revenue of Rs 10 lakh-12 lakh, 20 per cent on Rs 12 lakh-Rs 15 lakh revenue, whereas the tax slab of 30 per cent begins from Rs 15 lakh revenue.

Outdated tax regime

Most taxpayers have shifted to the brand new tax regime, however many nonetheless observe the outdated regime.

The regime presents tax-free revenue as much as Rs 5,00,000 after a tax rebate of Rs 12,500.

There’s a 20 per cent tax on revenue above Rs 5,00,000, whereas the 30 per cent tax slab begins from Rs 10,00,000 revenue.

The attraction of the outdated tax regime is tax advantages comparable to these beneath Part 80C of the Revenue Tax Act, 1961.

Proposed new tax regime

Finance minister Nirmala Sitharaman introduced adjustments within the new tax regime in Price range 2025, making an revenue as much as Rs 12,00,000 tax-free for non-salaried people.

The utmost tax rebate restrict was elevated from Rs 25,000 to Rs 60,000.

Salaried-class people will get a typical deduction of Rs 75,000, so their revenue as much as Rs 12,75,000 shall be tax-free.

The regime will present marginal aid to taxpayers whose revenue crosses the tax-free restrict marginally. In such a case, their tax will not be greater than the incremental revenue.

Revenue tax calculations

We’ll calculate revenue tax liabilities for salaried-class taxpayers incomes Rs 7.50 lakh, Rs 13 lakh, Rs 15 lakh, Rs 22.5 lakh, Rs 30 lakh, and Rs 37.5 lakh a yr.

We is not going to take any deduction for our calculations and can apply a rebate, commonplace deduction, and marginal aid for calculations.