Now less than a month is left for the presentation of the General Budget 2025-26. In this budget, the government can offer incentives to taxpayers to promote the new tax regime. At the same time, in Budget 2024, Finance Minister Nirmala Sitharaman has made significant changes in the Income Tax Slab under the new tax regime so that it can be more attractive for taxpayers. Along with the adjustment in the tax slab, the standard deduction limit has also been increased. Changes have also been made in the employee's contribution to family pension and National Pension System (NPS). However, no changes have been made to the old tax regime. Let us tell you that Finance Minister Sitharaman first introduced the new tax regime in her budget speech on February 1, 2020.

5 special things about the new tax regime-

1). Income tax slab rates

The income tax slab has been revamped under the new tax regime. There will be no tax on income up to Rs 3 lakh. A 10 percent tax rate has been fixed on income between Rs 7 lakh to Rs 10 lakh and a 5 percent tax will be levied on income between Rs 3 lakh to Rs 7 lakh. 15 percent tax will be levied on income between Rs 10 lakh to Rs 12 lakh, while 20 percent tax will be levied on income between Rs 12 lakh to Rs 15 lakh. The tax rate on income above Rs 15 lakh will remain at 30 percent.

Up to 3 lakh – no tax
3-7 lakh – 5 percent
7-10 lakh – 10 percent
10-12 lakh – 15 percent
12-15 lakh – 20 percent
Above Rs 15 lakh – 30 percent

2). Standard deduction for salaried persons
Under the new tax regime, the government has increased the limit of standard deduction for salaried persons from Rs 50,000 to Rs 75,000.

3). Standard deduction for family pensioners
The limit of standard deduction for family pensioners has been increased from Rs 15,000 to Rs 25,000.

4). National Pension System (NPS)
Under section 80CCD(2), up to 10 percent of an employee's basic salary is tax-free in the pension scheme. For taxpayers adopting the new tax system, this limit is 14 per cent.

5). How much tax can you save?
Under the new tax regime, the government has changed the income tax slab, due to which taxpayers choosing this option can save up to Rs 17,500 annually.

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