How you know this before the budget. whatever you expectations comes true
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Income Tax Slab & Rate for FY 2025-26
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How you know this before the budget. whatever you expectations comes true
likith_jogi
TF Buzz
who leaked the info to you?
Absolutely,
Currently, most people are choosing the new regime, and others are slowly transitioning as well.
I expect that the government may completely remove the old regime in the upcoming IT Bill, which will be presented next week.
Nevertheless, the new tax slabs seem good and beneficial for those with an income below ₹30L, while the old regime might still be better if one can claim most deductions and exemptions—though that is quite rare.
Yes, majority always wins. That's what they are trying to get with minimal losses
squarepizza
TF Buzz
Probably his father is some high level officer in the finance ministry.
EnthuCC
TF Premier
You might be talking about Qosh Tepa Canal. Read it again that it's a 'canal'. India has already big network of canals. We're in top 10 countries already with the largest navigated waterways. The data is of 2012. So I believe we might have improved our rank in waterways length by 2025.
I strongly agree that cleaning rivers projects is complete failure.
But please don't compare Apples with Oranges.
Try to build a river dam in India or even one more canal and you will find new 'environmentalists' popping out and delaying the project by decades.
Question: After the recent changes in income tax rate old tax regime or new tax regime which one is beneficial?
Answer:
It depends on various factors.
1. Your taxable income.
2. How much and which of those benefits u r using on old regime.
In simple terms for 99% (may be 100%) people the new regime should be more beneficial from FY 2025-26.
Question: How much deduction is required in old regime to make it more beneficial than new tax regime?
Answer:
Based on my assumption and rough estimate it should be around 8.0 lakh additional deduction in old regime required to make it more beneficial then the New tax regime.
FY 2023-24 - 4.25L
FY 2024-25- 4.3L or 4.375L (for salaried)
FY 2025-26- ~7.97L or 8.04 (for salaried)
Answer:
It depends on various factors.
1. Your taxable income.
2. How much and which of those benefits u r using on old regime.
In simple terms for 99% (may be 100%) people the new regime should be more beneficial from FY 2025-26.
Question: How much deduction is required in old regime to make it more beneficial than new tax regime?
Answer:
Based on my assumption and rough estimate it should be around 8.0 lakh additional deduction in old regime required to make it more beneficial then the New tax regime.
FY 2023-24 - 4.25L
FY 2024-25- 4.3L or 4.375L (for salaried)
FY 2025-26- ~7.97L or 8.04 (for salaried)
Sinatra
TF Select
yes, i think this is a way forward to make old tax regime redundant.
the entire economy is changing, previously, 80C, etc - it indirectly promoting and asking people to save some money. Now a days even saving attract taxes.
People were making rent/lease agreement, to declare and claim HRA.now those wont be done and people will fallback to cash and undocumented means.
as a londlord, i don't want to pay more taxes, as s tenants why go in hassle to deduct TDS and submit every month to govt.
better both parties wil do under the table settlement, might create a 5k/month rent documents. -- benefits for both.
oveall, a directionless budget. its only carrot.
Check timestamp 10:25 of this video
lets wait a week or two, when actual economic experts will provide their analysis. right now mostly paid youtube promotion are going showing only the good side creating a unwanted sensation.
the entire economy is changing, previously, 80C, etc - it indirectly promoting and asking people to save some money. Now a days even saving attract taxes.
People were making rent/lease agreement, to declare and claim HRA.now those wont be done and people will fallback to cash and undocumented means.
as a londlord, i don't want to pay more taxes, as s tenants why go in hassle to deduct TDS and submit every month to govt.
better both parties wil do under the table settlement, might create a 5k/month rent documents. -- benefits for both.
oveall, a directionless budget. its only carrot.
Check timestamp 10:25 of this video
lets wait a week or two, when actual economic experts will provide their analysis. right now mostly paid youtube promotion are going showing only the good side creating a unwanted sensation.
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I partly agree and party disagree with your point of view. I don't agree that the tax benefit provided in this budget is less or only paid people are telling the good side.
If I criticise FM for one thing it's my duty too to praise her for some other thing which I feel is good decision.
For most taxpayers (middle class having salary upto 25 Lakh) savings would be about 20 - 100% with an average somewhat around 30%. Is not that a good percentage to look at. I am not talking about tax evaders.
I am not paid.
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Sinatra
TF Select
yes people in the particular tax bracket definitely get some relief, and big relief for individuals up-to 12L. no one can deny that.
The coverage is very narrow, here is the segregation of taxpayer:
Im my previous comment, I was just trying to highlight that these benefits only a particular section of society. which is very very small, compared to our population. And those are blown out of proportion in media to hide the serious shortfalls and arrest the falling economy.
There could be other indirect ways to provide benefit to masses.
for example, if the 18% tax on insurance was reduces, it would have boosted the banking sector as well encourage many people to take insurance.
I might be wrong - but for now lets say - i have a health insurance of 5L, and im paying 25k premium per year (due to my age) for the same.
i actually see no benefit of it. rather im throwing the money in the drain.
I would better put 5L in debt/liquid funds. and use the entire sum when needed, instead of request the insurance babus to honors my medical emergency.
reducing heflty GST from medicine, food items, books, etc would have helped every citizen. And im sure people in wider spectrum would have saved more than 1L per year.
hey sorry if you felt it was for you. i never intended to say anything to you or any individuals.
I was just generalizing most of the insta/YouTube and TV news in last 20-22 hour.
They are beating the drums so hard as if the tax slab itself made 0 til 12L.
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Fully agree. Reach of indirect taxes is much much more. I don't like higher indirect taxes even if it is luxury goods. I would prefer 0, 5, 10, 15 for all GST items. Insurance, financial etc. deserve 5/10%. As u have highlighted, for the same reason I don't have personal medical insurance either. But I won't suggest others to follow my path.
No no it's ok. No need to be sorry. I just wanted to convey that the income tax payers fully deserving to get some respite in tax front. That's what I saw in this budget after a long time.
My personal opinion is everyone should pay some amount as income tax also. Like say 1.25% in 0-4L, 2.5% in 4-8L, 5% in 8-12L and so on till 20%. But that's my personal opinion and may not be a good decision in political / logistical perspective.
I don't like 39% tax for someone and 0% for others (many of them are evaders as well).
Just because I am not paying 39% or 43% (earlier), doesn't mean I should be happy because someone paying it for all of us. No, I don't like that insane tax rate when the facility in return is nothing extraordinary. I understand the pain of those who are paying at that rate it hurts just to find that part of that money going in drains.
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With the reducing numbers in the old regime income tax dept can easily scrutinize the deductions which will in turn drive more people to new tax regime
That's the thing I explained to my parents and Uncle today that lowering or no direct tax till 12.75L isn't helping the cause until GST come down which actually impacts savings in a good way. A 75-80K lollipop will not help as gst will eat it away.
My concern is only few people pay direct tax. By the way I liked the tax slab and rate changes this time. Rebate part I may not like but we have to accept the political reality.
Now, problem will start from 12L to 13 Lakh category on advance tax / TDS front. Because at 12 lakh salary we have zero tax but at 12.7 lakh salary we have 70,000 tax. That's what to some extent unfair and might be problematic for some taxpayers in assessment of tax due.
Look you can't adjust salaries but if salary is upto 12L then one can easily adjust the rest 1L to bring it down. It needs advance tax planning, moving of liquidity that can earn interest for such taxpayers like no FDs and low amt in savings. I mostly plan my family tax 6 months in advance. This year it is done for AY26-27 also as to how we will proceed for better tax savings. Will shift some of my FDs to mother as till now only 7.75L was tax free but after April 1 2025 for next FY it will be 12.75L. So funds will be gifted now to mother. lol
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Thanks for the detailed thread and post number 1. IT return filing needs to become more simple than what it is today.
A lot of sections and deductions makes the old regime very complicated. False claims were pretty rampant in old regime.
In new regime, people cannot escape taxes much. Under reporting income is the only possible way. That too not sure how long will be possible.
Most of the transactions are now captured in PAN. Tax collection becomes better. But Govt need to focus on utilization efficiency. People will start questioning more on how each amount is spent.
A lot of sections and deductions makes the old regime very complicated. False claims were pretty rampant in old regime.
In new regime, people cannot escape taxes much. Under reporting income is the only possible way. That too not sure how long will be possible.
Most of the transactions are now captured in PAN. Tax collection becomes better. But Govt need to focus on utilization efficiency. People will start questioning more on how each amount is spent.
For those earning more than 13L and above, the rebate is not applicable and they will have to pay tax at all the individual slab rates.
Check the calculator at https://www.moneycontrol.com/personal-finance/tools/income-tax-calculator
Check the calculator at https://www.moneycontrol.com/personal-finance/tools/income-tax-calculator
This will never happen, with technology politicians will also adapt to new ways to divert the funds to their interests
That has been the case always. Even earlier when rebate was up to 7L then also people were paying from 3L for higher taxable income. Nothing new.
I wrote about it in this thread as well. It's not 13 Lakh it's 12 lakh to be precise.
If standard deduction applicable then 12.75L. Also marginal tax benefits (70,600) will push it further till 13,45,600 and give something back out of nothing.
Right, i included the 75K rebate as well and rounded to the nearest lakh.
What i ment to say was, from the hype created on media, its basically not much benefit for those above 12.75L.
