FAQs

• What's the change in income tax after the 2025 budget announcement?

  The Budget 2025 has revised the tax slabs in the new regime, increasing the basic exemption limit to Rs. 4 lakh. Additionally, the standard deduction has been raised to Rs. 75,000 from Rs. 50,000 under this regime. Consequently, individuals with an income up to Rs. 12.75 lakh may have zero tax liability due to the combined effect of the standard deduction and tax rebate under Section 87A.

• What is the income tax slab rate for individuals in India?

  Under the new tax regime for the financial year 2025-26 (assessment year 2026-27), the income tax slab rates for individuals are as follows: - Up to Rs. 4 lakh: No tax - Rs. 4,00,001 to Rs. 8 lakh: 5% - Rs. 8,00,001 to Rs. 12 lakh: 10% - Rs. 12,00,001 to Rs. 16 lakh: 15% - Rs. 16,00,001 to Rs. 20 lakh: 20% - Rs. 20,00,001 to Rs. 24 lakh: 25% - Above Rs. 24 lakh: 30%. Additionally, a 4% health and education cess is applicable on the total income tax payable.

• What is the difference between gross income and net income?

  Gross income refers to the total income earned by an individual before any deductions or taxes are applied. Net income, on the other hand, is the income remaining after deducting taxes, contributions, and other deductions from the gross income. Net income is the amount that an individual takes home after accounting for all deductions and taxes.

• What is the standard deduction available to salaried individuals?

  The standard deduction is a fixed amount that is deducted from an individual's gross income to arrive at the taxable income. For the financial year 2025-26, the standard deduction available to salaried individuals is Rs. 75,000 under the new tax regime. This deduction is available to all salaried individuals, irrespective of their income level.

• What is the tax treatment of long-term capital gains (LTCG) on equity investments?

  Long-term capital gains (LTCG) on equity investments are taxed at a rate of 12.5% on gains exceeding Rs. 1.25 lakh in a financial year. Additionally, LTCG tax on equity investments is applicable if the holding period is more than one year. Short-term capital gains (STCG) on equity investments are taxed at a rate of 20% if the holding period is less than one year.