New Tax Regime 2025 - BEWARE of these New Changes and Updates
In the next Budget 2025, the government is preparing to make the New Tax Regime (NTR) more enticing, maybe by providing further exemptions to draw in taxpayers.
Everything you need to know about the anticipated upgrades and changes is provided here:
1. The New Tax Regime May Make EPF Mandatory
The government is considering making the Employees' Provident Fund (EPF) mandatory for all income levels to get more individuals to embrace the New Tax Regime. Under the previous tax structure, EPF currently received tax benefits under Section 80C, which included exemptions of up to ₹1.5 lakh. It's still unclear, though, whether comparable advantages will be added as an extra exemption or under a new provision.
Important Points to Remember:
Under the New Tax Regime, EPF can create new opportunities for savings.
Employees will have safe retirement planning thanks to mandatory contributions.
Everything you need to know about the anticipated upgrades and changes is provided here:
1. The New Tax Regime May Make EPF Mandatory
The government is considering making the Employees' Provident Fund (EPF) mandatory for all income levels to get more individuals to embrace the New Tax Regime. Under the previous tax structure, EPF currently received tax benefits under Section 80C, which included exemptions of up to ₹1.5 lakh. It's still unclear, though, whether comparable advantages will be added as an extra exemption or under a new provision.
Important Points to Remember:
Under the New Tax Regime, EPF can create new opportunities for savings.
Employees will have safe retirement planning thanks to mandatory contributions.
2. The 2025 Budget Will Prioritize Middle-Class Relief
The administration wants to lessen the financial strain on taxpayers and salaried people by:
declaring fresh exemptions from taxes.
increasing chances for savings to boost discretionary income.
3. What Exemptions Are Available Under the New Tax Regime?
The New Tax Regime has recently undergone the following updates:
The ₹2.5 lakh basic exemption level has been increased to ₹3 lakh.
The threshold for tax rebates was raised from ₹5 lakh to ₹7 lakh.
For salaried persons, the standard deduction is ₹50,000, which makes up to ₹7.5 lakh of income tax-free.
The administration wants to lessen the financial strain on taxpayers and salaried people by:
declaring fresh exemptions from taxes.
increasing chances for savings to boost discretionary income.
3. What Exemptions Are Available Under the New Tax Regime?
The New Tax Regime has recently undergone the following updates:
The ₹2.5 lakh basic exemption level has been increased to ₹3 lakh.
The threshold for tax rebates was raised from ₹5 lakh to ₹7 lakh.
For salaried persons, the standard deduction is ₹50,000, which makes up to ₹7.5 lakh of income tax-free.
4. Current Tax Slabs Under the New Regime
Income SlabsTax Rate
₹0 - ₹3 lakh0% (Tax-Free)
₹3 lakh - ₹6 lakh5%
₹6 lakh - ₹9 lakh10%
₹9 lakh - ₹12 lakh15%
₹12 lakh - ₹15 lakh20%
Above ₹15 lakh30%
Income SlabsTax Rate
₹0 - ₹3 lakh0% (Tax-Free)
₹3 lakh - ₹6 lakh5%
₹6 lakh - ₹9 lakh10%
₹9 lakh - ₹12 lakh15%
₹12 lakh - ₹15 lakh20%
Above ₹15 lakh30%
5. Reasons for the Difficulties with the New Tax Regime
The New Tax Regime has many drawbacks despite its simplicity:
lacks well-known exclusions such as HRA, 80D, and Section 80C.
less incentives to save than under the previous tax structure.
Proposed Solution: To allay these worries, the government intends to incorporate EPF and comparable investments into the New Tax Regime, which will promote saving in addition to spending.
The New Tax Regime has many drawbacks despite its simplicity:
lacks well-known exclusions such as HRA, 80D, and Section 80C.
less incentives to save than under the previous tax structure.
Proposed Solution: To allay these worries, the government intends to incorporate EPF and comparable investments into the New Tax Regime, which will promote saving in addition to spending.
6. EPF Secure Savings: A Revolution?
Mandating EPF for all taxpayers might have a big impact on salaried people. It guarantees:
safe retirement savings and earnings that are guaranteed.
If applied under the New Regime, tax advantages would be comparable to those under the previous regime.
Watch for updates on Budget 2025 to see how these adjustments may affect your financial situation. The New Tax Regime may become the preferable option for taxpayers as a result of the government's efforts to streamline and improve it.
Mandating EPF for all taxpayers might have a big impact on salaried people. It guarantees:
safe retirement savings and earnings that are guaranteed.
If applied under the New Regime, tax advantages would be comparable to those under the previous regime.
Watch for updates on Budget 2025 to see how these adjustments may affect your financial situation. The New Tax Regime may become the preferable option for taxpayers as a result of the government's efforts to streamline and improve it.