61,500 or 75,000: Tax Calculation for Salaries Above Rs 12 Lakh Post Budget 2025 Budget 2025 Introduces Marginal Relief Under Section 87A for New Tax Regime
Understanding Your Tax Liability Post Budget 2025
In the wake of Budget 2025, many salaried individuals are left wondering how changes in tax regulations will impact their take-home pay. If your salary exceeds Rs 12 lakh, it’s essential to understand how much tax you’ll owe under the new regime, especially with the introduction of marginal relief under Section 87A.
Tax Calculation for Salaries Above Rs 12 Lakh
For taxpayers earning between Rs 12 lakh and Rs 15 lakh, here’s a simplified breakdown of the tax calculation:
1. **Income Tax Slabs**:
– Income up to Rs 2.5 lakh: Nil
– Income from Rs 2.5 lakh to Rs 5 lakh: 5%
– Income from Rs 5 lakh to Rs 10 lakh: 20%
– Income from Rs 10 lakh to Rs 15 lakh: 30%
2. **Tax Calculation Example**:
– **For a salary of Rs 12 lakh**:
– Tax on Rs 2.5 lakh: Rs 0
– Tax on Rs 2.5 lakh (Rs 2.5 lakh to Rs 5 lakh): Rs 12,500
– Tax on Rs 5 lakh (Rs 5 lakh to Rs 10 lakh): Rs 1,00,000
– Tax on Rs 2 lakh (Rs 10 lakh to Rs 12 lakh): Rs 60,000
– **Total Tax Before Rebate**: Rs 1,72,500
– **Add 30% on Rs 12 lakh**: Rs 1,72,500
3. **Marginal Relief**:
With the introduction of Section 87A, taxpayers whose income slightly exceeds Rs 12 lakh can now avail of marginal relief. This is particularly beneficial for those earning just above the threshold, providing a cushion against a steep tax increase.
Take Advantage of Tax Planning Tools
To navigate through the complexities of tax calculations, it’s wise to consult reliable resources. One such platform is **Looffers.com**, where you can find comprehensive guides on tax planning and financial management tailored for Indian taxpayers.
Final Thoughts
Understanding your tax obligations is crucial, especially with the recent changes in Budget 2025. By being informed about your tax liabilities and exploring available relief measures, you can make the most of your hard-earned income. For more insights on optimizing your finances, visit **Looffers.com** today!
