*Here is a detailed analysis of Personal Income Tax*. **📉 *Old Tax Regime (Pre-2025)* 📉** - **Rebate U/s 87A**: ₹25,000 for income ≤ ₹7 lakh. → **Zero tax** if income ≤ ₹7 lakh. - **Tax Slabs**: - 0%: ≤ ₹3 lakh - 5%: ₹3–6 lakh - 10%: ₹6–9 lakh - 15%: ₹9–12 lakh - 20%: ₹12–15 lakh - 30%: > ₹15 lakh --- **📈 *New Tax Regime (2025 Amendment)* 📈** - **Rebate U/s 87A**: ₹60,000 for income ≤ ₹12 lakh. → **Zero tax** if income ≤ ₹12 lakh (rebate cancels tax). - **Tax Slabs**: - 0%: ≤ ₹4 lakh - 5%: ₹4–8 lakh - 10%: ₹8–12 lakh - 15%: ₹12–16 lakh - 20%: ₹16–20 lakh - 25%: ₹20–24 lakh - 30%: > ₹24 lakh ⚠️ **Rebate Conditions**: - Only under **new regime** (Section 115BAC). - **Not applicable** for income > ₹12 lakh or for **capital gains**. --- **❓ *Why Tax Slabs Exist Even If Tax is Nil Up to ₹12 Lakh?* ❓** - Tax is **calculated** using slabs first. - **Rebate U/s 87A** then **reduces tax liability** to zero if total income ≤ ₹12 lakh. *Example*: - Income = ₹12 lakh - Tax as per slabs: ₹60,000 (5% on ₹4L + 10% on ₹4L). - Rebate = ₹60,000 → **Net Tax = ₹0**. 🧮➡️💸 --- **🔑 *Key Changes* 🔑** | Parameter | Old Regime | New Regime (2025) | |---------------------|------------------|--------------------| | **Rebate Limit** | ₹7 lakh | ₹12 lakh ✅ | | **Rebate Amount** | ₹25,000 | ₹60,000 💰 | | **Applicability** | Both regimes | Only new regime | --- **💡 *Implications* 💡** - **Middle-class benefit**: Zero tax up to ₹12 lakh (vs. ₹7 lakh earlier). - **Push for new regime**: Rebate now exclusive to the simplified regime. - **Clarity**: Slabs exist for tax calculation, but rebate ensures *effective zero tax* for eligible incomes. - 85% of Indian Population (Approx. 140 Crs) has an Income of Less Than Rs 12 Lakhs, so Approx 119 Crs Indians will benefit from this 'Zero Tax' which will definitely boost Rural & Urban Consumption (increase in GST Collection) thereby having an overall impact on Indian Economy. 🙏🏻🇮🇳👍🏻