Budget 2025 | New income tax calculation 2025-26 | 12 Lac Nil tax vs. 4 Lac Slab rate скачать в хорошем качестве

Budget 2025 | New income tax calculation 2025-26 | 12 Lac Nil tax vs. 4 Lac Slab rate

Understanding the Difference Between ₹4 Lakh Basic Exemption & Nil Tax on ₹12 Lakh (Budget 2025) There has been a lot of confusion among taxpayers regarding the basic exemption limit of ₹4 lakh and the claim that income up to ₹12 lakh shall be tax-free under Budget 2025. Many people assume that the government has made income up to ₹12 lakh completely tax-free, which is not entirely correct. Let’s break down the concept clearly. ✅ What is the Basic Exemption Limit of ₹4 Lakh? The basic exemption limit is the income threshold below which no income tax is levied, regardless of deductions or exemptions. Before this budget, the basic exemption limit under the new tax regime was ₹3 lakh. It has now been increased to ₹4 lakh under the new regime. ✅ What This Means for You: If your total annual income is ₹4 lakh or below, you do not have to pay any income tax and are not required to file the income tax return. If your income exceeds ₹4 lakh, the excess amount will be taxed as per the new tax regime slab rates. ✅ How is Tax Nil Up to ₹12 Lakh? (Section 87A Rebate) When people say “No tax up to ₹12 lakh”, they don’t mean that ₹12 lakh is fully exempt. Instead, they refer to the fact that a person earning ₹12 lakh can still end up paying zero tax by using available the rebate under section 87A. ✅ This rebate allows a tax payer to claim the entire amount of tax payable as a rebate resulting in zero tax liability if his total taxable income is below ₹12 lakhs. Thus, ₹12 lakhs is the ceiling limit of the tax rebate. ✅ Special rate incomes such as capital gains are excluded from tax rebate! Narrated by: CA. Vidur Krishna Bindal, FCA For Feedback: Email: vidurbindal@gmail.com #taxation #budget2025 #personalfinance #paisa #wealth #stockmarket #money #ytshortstrending #shortsvideo #wealthbuilding #finance #trendingshorts