Budget 2025: CBDT releases Income Tax Regime related FAQs

The Central Board of Direct Taxes (CBDT) has released the Income Tax related Frequently Asked Questions (FAQs), pertaining to the Union Budget 2025-2026 presented by the Finance Minister Nirmala Sitharaman in the Lok Sabha and tabled in the Rajya Sabha. The FAQ answers the following questions: What is ‘New Regime’? What are the tax slabs in the earlier new regime? What are the new slabs in the proposed new regime introduced by Finance Bill, 2025? What is the tax benefit for different categories of taxpayers (0-24+ lacs)?

What is the maximum total income for which tax liability for individual taxpayers? To claim benefit of NIL tax liability mentioned above, what are the steps required to Take Your SME to the Next Level with IPO Insights – Click here to Register be taken? The change in tax slabs is beneficial for which category of persons?  How will a person who has an income Rs 12 lac benefit from new rates? Whether the limit of total income for NIL tax payments has increased in this budget? What was the earlier limit of income for nil tax payment? Is the standard deduction on salary available in the new regime? Whether standard deduction is available in the old regime?

How many taxpayers will benefit from the new rates and slabs? What is the extra amount available to the taxpayers as a result of this change? How is the marginal relief available to individuals? How much tax will be paid by a taxpayer having income of Rs 12,10,000/-? What is  marginal relief? How is the marginal relief computed? What is the maximum amount of rebate available to any tax payer? What is the total income till which marginal relief is admissible? Whether special income having special rate such as capital gains, lottery etc. also be eligible for rebate? What is the difference between rebate and marginal relief? Take Your SME to the Next Level with IPO Insights – Click here to Register

The FAQ also contains questions and answers regarding Incentives to IFSC, Incentives to IFSC- Inclusion of retail schemes and Exchange Traded Funds (ETF)s in the existing relocation regime of funds of IFSCA, Incentives to IFSC- Exempt income of Non-Residents, Bringing clarity in income on redemption of Unit Linked Insurance Policy, Rationalization of transfer pricing provisions for carrying out multi-year arm’s length price determination, Rationalization of the provisions relating to Charitable Trusts and Institutions, – Extension of date of making investment by Sovereign Wealth Funds Pension Funds and others, Scheme of presumptive taxation extended for non-resident providing services for electronics manufacturing facility, Amendment of definition of ‘capital asset’ — Securities held by Investment Funds and more.

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