Budget 2025 has introduced a tax exemption for incomes of up to ₹12 Lakhs, bringing relief to taxpayers. In this video, we’ll break down how this exemption works and give examples of tax calculations post this change.
We’ll begin by looking at the revised tax slabs under the new tax regime. You’ll learn how terms like gross income, net income, and standard deduction play a major role in determining the final tax liability. We’ll explore how the tax rebate under Section 87A applies to net incomes of up to ₹12 Lakhs, reducing tax payable to zero.
We’ll explain tax calculations for a higher net income of ₹25 Lakhs. You’ll see how different slabs apply, how deductions factor in, and how the final tax amount is determined. We’ll also talk about how the health & education cess is applied.
This simplified approach could help you grasp the logic behind the new tax structure and how it impacts different income levels.
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