Significant Tax Breaks Announced for High Earners in New Budget

Finance Minister Nirmala Sitharaman's new budget policy offers substantial tax savings for individuals with annual incomes between Rs 12 lakh and over Rs 24 lakh. The revised tax slabs target varied income groups, providing significant relief and optimizing savings as part of the new tax regime starting in 2025-26.

The Finance Minister Nirmala Sitharaman has unveiled significant tax breaks in the latest budget, targeting high-income individuals. Those earning Rs 24 lakh or more annually can anticipate saving up to Rs 1.10 lakh in income tax. Meanwhile, earners of Rs 12 lakh will enjoy complete tax exemption, translating into savings of Rs 80,000 by the next fiscal.

Sitharaman's budget introduces restructured tax slabs under the new tax regime, offering relief to various income brackets. As per governmental calculations, individuals earning Rs 13 lakh annually will save Rs 25,000 on their tax liability. Similarly, those earning between Rs 14 lakh and Rs 23 lakh will see escalating savings ranging from Rs 30,000 to Rs 1.05 lakh.

For the salaried class, the exemption threshold could rise to Rs 12.75 lakh per annum by considering a standard deduction of Rs 75,000. The revised slabs propose a tax-free bracket up to Rs 4 lakh, with incremental rates of 5% to 30% for income beyond that, reaching over Rs 24 lakh annually.

(With inputs from agencies.)