Revised Tax Slabs: Annual Income Rs 12,75,001? Will you be taxed on Re 1 or Rs 12,75,001? Know what CAs say
Revised Income Tax Slabs: One of the major announcements in Budget 2025 was that non-salaried individuals up to an annual income of Rs 12 lakh and salaried individuals up to an income of Rs 12,75,000 won't be taxed. But what if you are a non-salaried individual with Rs 12,00,001 income or a salaried individual with Rs 12,75,001 income? Will you be taxed on just Rs 1 or the entire amount? Know what expert speaks-??
New Tax Regime Revised Slabs, Budget 2025: Crores of taxpayers across India got a major relief when Finance Minister Nirmala Sitharaman revised new tax regime slabs, announcing that non-salaried individuals up to an annual income of Rs 12 lakh and salaried individuals up to an annual income of Rs 12.75 lakh won't be taxed. For salaried individuals, an extra Rs 75,000 relaxation is because of the standard deduction, which non-salaried individuals don't get. But what if a non-salaried person earns Rs 12,00,001 or a salaried person earns Rs 12,75,001 a year? Do they have to pay tax on the entire income or just Rs 1? See expert views to know how much tax you need to pay on that-??
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What are revised new tax regime slabs?

What are existing new tax regime slabs?

When will revised new tax regime slabs be applicable?

What is major difference?

What is major difference?

Why salaried individuals are getting extra Rs 75,000 benefit?

What is standard deduction?

Tax if non-salaried individual earns Rs 12,00,001 & salaried individual earns Rs 12,75,001

Tax on entire income or Rs 1 for non-salaried individual?

How does marginal relief work?

How does marginal relief work?

More examples of marginal relief

When will it apply?

Mundada continues, "So, if one goes by the working, up to Rs 12,70,000, the marginal relief concept will work, and hence income will not be taxable. But the moment it is Rs 12,75,000, the difference between tax as per slab rates and the extra income is Rs 75,000. It is exceeding tax rates, which is calculated, and hence marginal relief won't be applicable. In this situation, the entire tax as per slab rates would be required to be paid."