Budget 2026: Tax Calculator Reveals Over 1 Lakh Savings for Rs 20 Lakh Salary
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News18•15-01-2026, 17:13
Budget 2026: Tax Calculator Reveals Over 1 Lakh Savings for Rs 20 Lakh Salary
- •The 2025 budget significantly reformed personal income tax, especially for middle-class taxpayers, moving away from a deduction-heavy system.
- •Income up to Rs 12 lakh (Rs 12.75 lakh for salaried with standard deduction) was made effectively tax-exempt under the new regime.
- •A salaried individual earning Rs 20 lakh can save Rs 1,09,616 in tax by opting for the new tax regime in FY 2025-26.
- •The new regime offers higher basic exemption limits, lower slab rates, and a Rs 75,000 standard deduction, compensating for removed exemptions.
- •The maximum 30% tax rate now applies only to incomes above Rs 24 lakh, up from Rs 15 lakh previously, benefiting higher earners.
Why It Matters: New tax regime in Budget 2025 offers substantial savings for salaried individuals, especially those earning Rs 20 lakh.
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