In the Union Budget 2025, significant changes were introduced to the New Tax Regime, particularly affecting taxpayers with annual incomes above ₹12 lakh. Here's a comparison of the tax calculation for an annual income of ₹24,00,000 under the New Tax Regime for Financial Year (FY) 2025-26 and FY 2024-25.
Tax Slabs for FY 2024-25 (Assessment Year 2025-26):
| Income Range (₹) | Tax Rate (%) |
|---|---|
| Up to ₹3 lakh | NIL |
| ₹3 lakh to ₹7 lakh | 5% |
| ₹7 lakh to ₹10 lakh | 10% |
| ₹10 lakh to ₹12 lakh | 15% |
| ₹12 lakh to ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
Tax Calculation for FY 2024-25:
- ₹3,00,000 at 0% = ₹0
- ₹4,00,000 at 5% = ₹20,000
- ₹3,00,000 at 10% = ₹30,000
- ₹2,00,000 at 15% = ₹30,000
- ₹3,00,000 at 20% = ₹60,000
- ₹9,00,000 at 30% = ₹2,70,000
Total Tax = ₹0 + ₹20,000 + ₹30,000 + ₹30,000 + ₹60,000 + ₹2,70,000 = ₹4,10,000
Tax Slabs for FY 2025-26 (Assessment Year 2026-27):
| Income Range (₹) | Tax Rate (%) |
|---|---|
| Up to ₹4 lakh | NIL |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Tax Calculation for FY 2025-26:
- ₹4,00,000 at 0% = ₹0
- ₹4,00,000 at 5% = ₹20,000
- ₹4,00,000 at 10% = ₹40,000
- ₹4,00,000 at 15% = ₹60,000
- ₹4,00,000 at 20% = ₹80,000
- ₹4,00,000 at 25% = ₹1,00,000
Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹60,000 + ₹80,000 + ₹1,00,000 = ₹3,00,000
So, the total tax payable for an income of ₹24,00,000 under the New Tax Regime for FY 2025-26 is ₹3,00,000.
Comparison:
- Total Tax Payable in FY 2024-25: ₹4,10,000
- Total Tax Payable in FY 2025-26: ₹3,00,000
Note: The above calculations are based on the tax slabs announced in the Union Budget 2025 and should not be considered as tax advice. For the most accurate and personalized tax planning, it's advisable to consult with a tax professional.