The Finance Bill is a crucial part of the Union Budget. It includes tax proposals and other financial measures announced by the government.
Its passage is necessary for these provisions to take effect.
The Union Budget 2025 proposed major tax reliefs for salaried individuals, senior citizens, and homeowners. The nil tax slab has been proposed to raise from ₹7 lakh to ₹12 lakh under the new tax regime.
The Finance Minister also proposed changes in TDS, ULIP taxation, NPS rules, and self-occupied house tax relief.
New income tax slabs
The proposed tax slabs under the new tax regime are:
- No tax on income up to ₹4 lakh
- 5% tax on income from ₹4 lakh to ₹8 lakh
- 10% tax on income from ₹8 lakh to ₹12 lakh
- 15% tax on income from ₹12 lakh to ₹16 lakh
- 20% tax on income from ₹16 lakh to ₹20 lakh
- 25% tax on income from ₹20 lakh to ₹24 lakh
- 30% tax on income above ₹24 lakh
The tax deduction limit on interest income for senior citizens has been doubled from ₹50,000 to ₹1 lakh. This will reduce the tax burden and encourage savings among retirees.
Meanwhile, in the Rajya Sabha, the government is likely to push for the passage of the Banking Laws (Amendment) Bill.
First Published: Mar 24, 2025 10:09 AM IST