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BUDGET 2025 Discussion | Your Predictions/Suggestions/Reviews/ Outcomes

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thanix said:
I don't think so. Tax slab remains same for both 12.75 and 12.76L. Government gives rebate till 12.75L. So net tax becomes 0. Once you cross, you are not eligible for rebate. So you fall under slab rate and pay tax in slab rates. Please note this is on income and not limited to salary.
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everyone gets that rebate. once you cross, you pay tax on the margin by which you have crossed by the slab rate.
 
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akiratoriyama said:
Check this out. Will make more sense.
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Looks like this is accurate information.
Source: https://incometaxindia.gov.in/Documents/Budget/budget-2025/faqs-budget-2025.pdf (see page 3 for an illustration)
News via: https://www.ndtv.com/business-news/...kh-internet-flags-questions-confusion-7610144

EDIT: but also it says "* For income above 12 lac, in the case of resident individuals, marginal relief shall be allowable", and then explains on page 4
Q.15. How is the marginal relief available to individuals?

Ans. In the new regime under sec on 115BAC(1A), marginal relief is available to only resident individuals who have income marginally above Rs. 12 lacs. For example, for a person having income of Rs. 12,10,000/-, in the absence of marginal relief, the tax, works out to be Rs.61,500/-(5% of Rs.4 lacs+10% of 4 lac and 15% of Rs.10 thousand). However, due to marginal relief, the amount of tax to be actually paid is Rs. 10,000/-
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Some people here are confused on marginal tax....Marginal tax can help to reduce tax liability.

For example, if one having income 12,50,000 then his tax would be 60,000+ 15% of 50,000 = 67,500. That could bring his net Income 11,82,500. Hence, they could use the marginal benefit and avail a benefit of 17,500. That would equalize his net income with a person earning between 12,00,000 to 12,49,999.

In current scenario a person having income between 12.0 to 12.7 Lakh would get benefitted on this. After that actual slab rate kicks in.

(Note: I have not considered 75,000 standard deduction, that is a separate thing to lower your taxable income)

k989 said:
A lot of half knowledge/nonsense is floating around the forums, wait till the time you actually file the tax return.
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@k989 Hey, don't criticize here using such harsh language because everyone here came to learn only.
 
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abhiaj98 said:
So basically

it means if someone is earning 13L they will get less than if they were earning 12.75L
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Not necessarily. Maybe they'll be getting the same.

There's another provision in new regime, where rebate is provided if the tax on total income is more than the amount by which the total income exceeds 12.75L.

So a person earning 13L will pay (75k-50k= 25k in taxes)
 
k989 said:
everyone gets that rebate. once you cross, you pay tax on the margin by which you have crossed by the slab rate.
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How much is the margin allowed? Example - If 12L income is exempt, under marginal relief, how much above shall be claimed? 12.5L? 13L? May be a CA can do it. How a self filer can do it in ITR because the online form is mostly automated. Please provide details which will help lot of people.
 
thanix said:
How much is the margin allowed? Example - If 12L income is exempt, under marginal relief, how much above shall be claimed? 12.5L? 13L? May be a CA can do it. How a self filer can do it in ITR because the online form is mostly automated. Please provide details which will help lot of people.
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@k989 is right.

In calculation it comes around 12,70,600 after that slab rate kicks in.

So essentially if someone's taxable income is more than that amount he won't get marginal benefits.

However they still get some benefit due to slab rate changes.

Maximum benefit is at 12L as you go away your benefit reduces. In simple terms all taxpayer between 12L - 12,70,600 will have same take home income (after tax).
 
thanix said:
How much is the margin allowed? Example - If 12L income is exempt, under marginal relief, how much above shall be claimed? 12.5L? 13L? May be a CA can do it. How a self filer can do it in ITR because the online form is mostly automated. Please provide details which will help lot of people.
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ITR forms take care of it. Today same issue happens when cess get added above 50L income. Online or java based application has this calculation inbuilt for cess issue over 50L.
 
I see a huge problem now which may happen with this. Lets say someone has salary income of 12.75 L or slightly lesser than that will have no tds. Now, lets say she has additional interest income of 1 Lakh from fixed deposit. Bank will cut tds of 10k and as per today she might have additional tax of another 5 to 10k. But now in new structure, her additional tax will become 60k + 5 to 10k. And if advance tax not paid, additional interest and penalty.

All above calculation are very rough estimate. So, please don't go in exact detail. But do compute your tax liability regularly and pay advanve tax.

I have miscalculated earlier and paid about 40 to 50k in interest and penalties. I know how it feels. 😁
 
thanix said:
Does Employee PF contribution now added in exemption in New Tax Regime? I was hoping for it.
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I think only 50k nps employer contribution and 75k standard decution allowed in new regime, so 12L and 1.25L total 13.25L salary person will have 0 tax, if his/her employer deduct nps
 
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