Income Tax on 12 Lakh Income - Check Slab on 12 Lakh Salary

Tax on 12 Lakh Income

The Union Budget 2025 has introduced significant changes to the income tax regime, impacting how individuals with an income of ₹12 lakh are taxed. This income level often places individuals squarely in the middle class, making tax implications a crucial aspect of their financial planning. The budget's focus on simplifying the tax structure and providing relief to this segment is evident in the announced revisions. Let's delve into how the 2025 budget impacts your ₹12 lakh income.

Tax on Income of ₹12 Lakhs: 2025 Budget Highlights

The 2025 Union Budget has brought some key changes that directly impact individuals earning ₹12 lakhs annually. Here are the highlights you need to know:

No Tax up to ₹12 Lakhs: A significant announcement is that no income tax will be levied on income up to ₹12 lakhs. This provides substantial relief to those in this income bracket.

Income Tax Slab Changes: The income tax slabs have been revised. While the full details are forthcoming, these changes are likely to impact how the portion of your income above ₹12 lakhs is taxed. It's essential to review the new slab structure once released to understand your tax liability.

New Income Tax Bill: A new Income Tax Bill is on the horizon, promising further simplification and efficiency in the tax system. This could bring additional changes that will affect your overall tax calculation.

TDS/TCS Rationalization: Rationalization of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) aims to simplify compliance. This could make it easier to manage your tax obligations.