Those who earn money in any way, be it a job, business, or profession, know very well that every year the month of April brings many changes for them. But, this time the month of April is going to be special, because the big changes that are going to happen from April this time, will probably never happen before. This is also very special for those who earn money because the matter is directly related to people's money. The government has made many big announcements for the middle class and the employed, which will be implemented from April 1, 2025.

Finance Minister Nirmala Sitharaman had announced in the budget presented on February 1 that along with the change in the income tax slab, tax exemption will also be given. The Finance Minister did not make any changes in the old tax regime, but along with changing the tax slab in the new regime, the scope of tax exemption was also increased. These new rates of income tax will be applicable from the new financial year starting from 1st April. Therefore, every earning person needs to know what kind of tax exemption they will get and how much money they will save.

What is the new income tax slab (new regime)

Zero tax on income up to 4 lakhs

5% tax on income from 4 to 8 lakhs

10% tax on income from 8 to 12 lakhs

15% tax on income from 12 to 16 lakhs

20% tax on income from 16 to 20 lakhs

25% tax on income from 20 to 24 lakhs

30% tax on income above 24 lakhs

Bumper tax exemption too

The government has not only given relief to the salaried and middle class by reducing the tax slab but has also increased the scope of tax exemption considerably. From the new financial year starting from April 1, now no tax will have to be paid on income up to Rs 12 lakh annually. Under the new income tax regime, the government has completely exempted income up to Rs 12 lakh from tax. This means that even a person earning Rs 1 lakh per month will not have to pay any tax, whether he has made any investment or not.

Another exemption of Rs 75,000 for salaried people
The income tax relief from the government does not end here, more exemptions will be given to those who are employed. The Finance Minister has said that an additional tax exemption of Rs 75,000 will be given to those who are employed in the form of a standard deduction. This means that the direct tax exemption of those who are employed will become Rs 12.75 lakh. This tax exemption will be available without any investment.

Exemption will also be available on TDS.