The Union Budget 2025 has brought exciting changes for taxpayers across India. With new deductions, exemptions, and revised tax slabs, you can now save up to ₹2.6 lakh in income tax! Whether you're a salaried employee, business owner, or investor, these updates will help you make the most of your hard-earned money.
Key Highlights of Budget 2025
1. Revised Income Tax Slabs
The government has introduced new tax slabs to ease the burden on taxpayers. Here’s a quick overview:
| Income Range (₹) | Old Tax Rate | New Tax Rate |
|---|---|---|
| 0 - 3,00,000 | Nil | Nil |
| 3,00,001 - 7,00,000 | 5% | 5% |
| 7,00,001 - 10,00,000 | 10% | 5% |
| 10,00,001 - 15,00,000 | 15% | 10% |
| 15,00,001+ | 30% | 25% |
These revised slabs make tax filing simpler and more beneficial for middle-class earners.
2. Standard Deduction Increased
Salaried employees and pensioners can now claim a standard deduction of ₹50,000, up from ₹40,000.
This increases overall tax savings for millions of taxpayers.
3. Section 80C Deduction Increased to ₹2 Lakh
The Section 80C limit has been raised from ₹1.5 lakh to ₹2 lakh, allowing higher savings on investments in PPF, ELSS, and insurance policies.
4. Higher Home Loan Interest Deduction (Section 24)
Homebuyers can now claim up to ₹2.5 lakh as a deduction on interest paid for housing loans, making real estate investments more attractive.
5. New Tax Benefits for Startups & Entrepreneurs
Startups registered under MSME schemes will get tax exemption for the first 5 years.
Capital gains tax exemption on reinvested profits into MSME businesses.
How to Maximize Your Tax Savings
To fully utilize the ₹2.6 lakh savings, follow these strategies:
Invest in Tax-Saving Instruments – Utilize PPF, ELSS, and NPS for Section 80C benefits.
Claim Home Loan Interest – If you own a home, make sure to maximize Section 24 deductions.
Health Insurance & NPS – Section 80D allows deductions on health insurance premiums, reducing your taxable income further.
Opt for the Right Tax Regime – Choose between the Old vs. New Tax Regime based on your income and deductions.
Conclusion
The Income Tax Budget 2025 presents incredible opportunities to save more and invest wisely. By planning your finances and taking advantage of these deductions, you can reduce your tax burden by up to ₹2.6 lakh! Stay informed, file your returns on time, and make the most of these benefits.
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