It's a rebate (and not a slab) which applies only if your income is less or equal to 12L. If your income is more than that, then the normal slabs apply.
What new will Budget 2025 bring for us?
- Thread starter Renegade
- Start date
k_m_Arya
Galvanizer
So what would happen those who are earning just a little more than 1275000 rs , wouldn't they get marginal relief ?
mayank11280
Explorer
They will pay the full tax in the new tax regime.
Basically, anyone who earns less than 12.75L will have their whole IT rebated.
Those who earn even a single rupee more than 12.75L will have to pay full IT.
Yes. They will pay tax for the full taxable amount, but since the slabs have been slighly shuffled, they still get some relief.
The old tax regime has been abandoned since the last couple of years. All benefits are only for the new regime.
The slabs have also changed.
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No marginal tax relief those who are earning just little bit more than 1275000 limit? If they don't get any marginal relief they would earn less than those who are making 1275000 and below.
My point was that the 12L was just a rebate for those who earn upto that amount. It had nothing to do with the slabs and some media is going gaga as if it was a slab.The slabs have also changed.
Moreover one has to still compare the old vs new, which is better. For me, as of current filing, the old one is better.