Income Tax Reforms 2025 - Middle Class Focus
Comprehensive Overview of New Tax Regime with Enhanced Benefits for the Middle Class
Income Assessment
Income Classification and Slabs
Income > ₹12L?
Tax Rebate Applicable
(No Tax up to ₹12L)
(No Tax up to ₹12L)
Zero Tax Liability
Progressive Tax Rates
Apply Based on Slabs
Apply Based on Slabs
Tax Calculation
with Marginal Relief
with Marginal Relief
Final Tax Payment
New Tax Slabs
Enhanced tax benefits with revised slabs and rates for the middle class
| Income Range | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹20,00,000 | 20% |
| ₹20,00,001 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Tax Rebate Information
No tax payable up to income of ₹12,00,000 under the new regime
- • Enhanced rebate limit from ₹7,00,000 to ₹12,00,000
- • Applicable for resident individuals
- • Marginal relief available for income above ₹12,00,000
Tax Benefit Calculation Examples
Comparative analysis of present vs proposed tax structure
| Income (₹) | Present Tax | Proposed Tax | Total Benefit | Final Tax |
|---|---|---|---|---|
| 8,00,000 | 30,000 | 20,000 | 10,000 | 20,000 |
| 9,00,000 | 40,000 | 30,000 | 10,000 | 30,000 |
| 10,00,000 | 50,000 | 40,000 | 10,000 | 40,000 |
| 11,00,000 | 65,000 | 50,000 | 15,000 | 50,000 |
| 12,00,000 | 80,000 | 60,000 | 20,000 | 60,000 |
| 16,00,000 | 1,70,000 | 1,20,000 | 50,000 | 1,20,000 |
| 20,00,000 | 2,90,000 | 2,00,000 | 90,000 | 2,00,000 |
| 24,00,000 | 4,10,000 | 3,00,000 | 1,10,000 | 3,00,000 |
| 50,00,000 | 11,90,000 | 10,80,000 | 1,10,000 | 10,80,000 |
* All figures are in Indian Rupees