1. Income Tax: More Money, Less Hassle!

One of the biggest announcements in this budget is the increase in the tax exemption limit. The government has now raised the zero-tax slab to ₹12 lakh under the new tax regime, up from the previous ₹7 lakh. This means that individuals earning up to ₹12 lakh annually will pay no income tax!

Additionally, a standard deduction of ₹75,000 has been introduced. So, effectively, if your income is up to ₹12.75 lakh, you won’t pay a single rupee in tax!

New Tax Slabs under the New Regime (2025-26)

Income Range-Tax Rate

Up to ₹4 lakh 0%

₹4 lakh - ₹8 lakh 5%

₹8 lakh - ₹12 lakh 10%

₹12 lakh - ₹16 lakh 15%

₹16 lakh - ₹20 lakh 20%

₹20 lakh - ₹24 lakh 25%

Above ₹24 lakh 30%

💡 Key Takeaway: This new structure reduces the tax burden for most middle-class taxpayers, giving them more financial flexibility.

2. TDS Simplification: Easier Compliance, Less Deduction!

The budget also addresses Tax Deducted at Source (TDS), making life easier for taxpayers, especially for senior citizens and property owners.

• Higher TDS Limit on Interest Income for Senior Citizens
  ➝ Previously, if your bank interest exceeded ₹50,000, TDS was deducted. Now, this limit has been doubled to ₹1 lakh, providing extra relief for retired individuals.
• TDS on Rental Income
  ➝ Earlier, TDS was deducted if rental income exceeded ₹2.4 lakh per year. This limit has now been raised to ₹6 lakh, ensuring that small landlords face fewer deductions and paperwork.

💡 Key Takeaway: These changes mean lesser deductions at the source, giving individuals more immediate access to their earnings.

3. New Tax Regime Becomes Default – Should You Switch?

The government is actively encouraging taxpayers to shift to the new tax regime, making it the default choice.

If you prefer the old regime (with deductions like 80C, HRA, etc.), it is still available, but no changes have been made to its slabs or benefits.

✅ Who benefits from the new regime?
✔️ Those with income below ₹12 lakh (zero tax up to ₹12.75 lakh with standard deduction)
✔️ Individuals with fewer tax-saving investments (like PF, insurance, etc.)

❌ Who should stick to the old regime?
✔️ People with home loans, insurance, PF, and tax-saving investments
✔️ Those who claim higher deductions under 80C, 80D, etc.

💡 Key Takeaway: If you don’t have many deductions, the new regime is better, as it reduces tax liability and simplifies filing.

4. What This Means for You: A Budget for the People

The 2025 Budget prioritizes tax relief, ease of compliance, and financial growth for the common man. With higher exemption limits, rationalized TDS provisions, and a simplified tax structure, the government has ensured that more money stays in your pocket!

📢 Final Thoughts:
✅ No tax up to ₹12.75 lakh = More savings!
✅ Less TDS deduction = More cash in hand!
✅ Easier compliance = Less hassle!

💬 What do you think of the Budget 2025? Will you switch to the new regime? Share your thoughts in the comments! 🚀