Explained: All about changes in income tax slabs presented in Union Budget 2025

News Network
February 1, 2025

The Union Budget 2025 has brought significant revisions to the income tax structure, aiming to address long-standing demands of middle-class taxpayers, particularly salaried individuals. The newly proposed tax slabs and rebate enhancements are expected to provide substantial relief, making taxation more streamlined and beneficial for the majority.

REVISED INCOME TAX SLABS

The proposed tax slabs under the new regime are as follows:
•    Income up to Rs 4 lakh – Nil
•    Rs 4-8 lakh – 5%
•    Rs 8-12 lakh – 10%
•    Rs 12-16 lakh – 15%
•    Rs 16-20 lakh – 20%
•    Rs 20-24 lakh – 25%
•    Above Rs 24 lakh – 30% (plus applicable cess and surcharge)

Currently, the tax slabs under the new regime are:
•    Income up to Rs 3 lakh – Nil
•    Rs 3-7 lakh – 5%
•    Rs 7-10 lakh – 10%
•    Rs 10-12 lakh – 15%
•    Rs 12-15 lakh – 20%
•    Above Rs 15 lakh – 30%

ENHANCED REBATE UNDER SECTION 87A

The budget proposes an increase in the income cap for availing the rebate under Section 87A from Rs 7 lakh to Rs 12 lakh, while the rebate amount will rise from Rs 25,000 to Rs 60,000. This effectively means that individuals earning up to Rs 12 lakh annually (or Rs 1 lakh per month) will not have to pay any income tax under the new regime, excluding special rate income such as capital gains.

Additionally, salaried taxpayers can benefit from the standard deduction of Rs 75,000, pushing the tax-free income threshold to Rs 12.75 lakh.

Recent data suggests that 78% of taxpayers have already transitioned to the new tax regime. With these latest reforms, the government anticipates an even greater shift towards the default new regime.

TDS AND TCS RATE RATIONALISATION

The government has proposed selective rationalisation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rates, which include:

•    Senior Citizens’ Interest Income – The tax deduction threshold will be increased from Rs 50,000 to Rs 1 lakh.

•    TDS on Rent – The annual exemption cap will rise from Rs 2.40 lakh to Rs 6 lakh.

•    TCS on Foreign Remittances – The threshold cap will increase from Rs 7 lakh to Rs 10 lakh.

Additionally, the higher 20% TDS deduction will now apply only in cases where the PAN is inoperative, ensuring that compliant taxpayers do not face undue deductions. These adjustments are expected to ease compliance burdens for taxpayers.

UPDATED TAX RETURN FILING WINDOW EXTENDED TO 4 YEARS

Currently, taxpayers can file an updated return within 24 months from the end of the relevant assessment year, provided it results in additional tax payments. The new proposal extends this window to 48 months, offering taxpayers more flexibility to rectify their tax filings and remain compliant.

The Union Budget 2025’s tax reforms reflect a concerted effort to reduce the financial strain on taxpayers while simplifying the taxation process. These changes mark a significant shift in the government's approach to personal taxation, with a clear emphasis on inclusivity and fairness.

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Agencies
February 20,2025

NewCM.jpg

First-time MLA Rekha Guptatook took oath as Delhi’s ninth Chief Minister on Thursday (February 20, 2025) at an event in the iconic Ramlila Maidan in the presence of Prime Minister Narendra Modi, Union Home Minister Amit Shah, Bharatiya Janata Party (BJP) president J.P. Nadda, and Chief Ministers and Deputy CMs of the National Democratic Alliance (NDA)-ruled States.

Lieutenant Governor of Delhi V K Saxena administered the oath of office and secrecy.

BJP's Parvesh Sahib Singh, Ashish Sood, Manjinder Singh Sirsa, Ravinder Indraj Kapil Mishra and Pankaj Kumar Singh also take oath as ministers in CM Rekha Gupta-led Delhi Government.

Rekha Gupta from Shalimar Bagh was chosen as the Leader of the House in the Delhi Assembly at the BJP legislature party meeting on Wednesday. The party has returned to power in Delhi after over 26 years, ending the 10-year rule of the Arvind Kejriwal-led AAP.

Born in Haryana's Julana, Gupta is a BCom graduate from Delhi University's Daulat Ram College. She later earned a law degree from Chaudhary Charan Singh University, Meerut, and also practised as an advocate.

Gupta, who has had a 32-year association with the RSS, began her political journey with the Akhil Bharatiya Vidyarthi Parishad (ABVP) at Delhi University's Daulat Ram College in 1992. In 1995-96, she was the secretary of the Delhi University Students' Union and was its president in 1996-97.

In 2002, she joined the BJP and has been the national secretary of the party's youth wing. Gupta has also served as the BJP's women wing in charge in Madhya Pradesh and Uttar Pradesh.

She is also the national vice-president of BJP Mahila Morcha.

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Agencies
March 5,2025

In a sharp retort to US President Donald Trump's reciprocal tariffs charge, the Chinese embassy in the US said Beijing is ready to "fight till the end" in any type of war the US wants. "If war is what the US wants, be it a tariff war, a trade war or any other type of war, we're ready to fight till the end," the Chinese embassy's official handle posted on X after Trump's explosive remarks in a joint session at Congress.

Trump said other countries have used tariffs against the US for decades. "Now it's our turn to start using them against those other countries. On average, the European Union, China, Brazil, India, Mexico and Canada. Have you heard of them? And countless other nations charge us tremendously higher tariffs than we charge them. It's very unfair. India charges us auto tariffs higher than 100%. China's average tariff on our products is twice what we charge them. And South Korea's average tariff is four times higher," he said.

"This is happening by friend and foe. This system is not fair to the United States and never was... That's reciprocal back and forth. Whatever they tax us, we will tax them," he said.

Trump has increased previously imposed 10 per cent levies on Chinese goods to 20 per cent. China has filed a complaint with the World Trade Organization against the US.

"The United States' unilateral tax measures seriously violate WTO rules and undermine the foundation of China-US economic and trade cooperation," Beijing's commerce ministry said in a statement.

While imposing the tariffs, Trump accused China of not doing enough to halt the trafficking of fentanyl and other highly potent opioids into the US.

The Chinese Foreign Ministry has contested this. "The fentanyl issue is a flimsy excuse to raise US tariffs on Chinese imports. The US, not anyone else, is responsible for the #FentanylCrisis inside the US. In the spirit of humanity and goodwill towards the American people, we have taken robust steps to assist the US in dealing with the issue. Instead of recognizing our efforts, the US has sought to smear and shift blame to China, and is seeking to pressure and blackmail China with tariff hikes," it said in a statement.

"They've been PUNISHING us for helping them. This is not going to solve the US's problem and will undermine our counternarcotics dialogue and cooperation. Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion or threats are not the right way of dealing with China. Anyone using maximum pressure on China is picking the wrong guy and miscalculating. If the US truly wants to solve the fentanyl issue, then the right thing to do is to consult with China by treating each other as equals," it added.

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News Network
February 24,2025

Karnataka's Primary and Secondary Education Minister, Madhu Bangarappa, announced that skill-oriented classes will be introduced for students of grades 8 to 12 alongside the regular curriculum from the next academic year.

Speaking at the inauguration of the Skill and Employment Fair organized by the District Administration, Zilla Panchayat, and Skill Development Department at the National College of Education, in Shivamogga, he emphasized the importance of skill-based education in shaping students' futures.

"Introducing skill training at an early stage will help students acquire expertise in their chosen fields, secure desired jobs, and lead self-reliant lives," the minister stated.

To improve job opportunities for youth, Bangarappa proposed a transport facility for job seekers. Instead of organizing job fairs at the taluk level—where employer participation is limited—he suggested conducting them at district headquarters with free bus services for registered candidates from rural and urban areas. This initiative will be discussed with concerned officials and implemented next year, he added.

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