The Union Funds 2025 has given an ideal reduction to the middle-class tax payers by asserting discount in tax slab fee and hike in tax rebate. This hike ensures that these incomes as much as Rs 12 lakh may have zero tax legal responsibility for the Monetary 12 months 2025-26 (AY 2026-27).
Is that this new proposal going to have vital affect on the tax paying people? What per centage of tax-payers are going to profit with this hike in tax rebate?
Allow us to undergo the essential and related information supplied by the Earnings Tax Division on this regard!
9 out of 10 particular person tax payers might now have NIL revenue tax legal responsibility
Yearly, the IT division publishes the statistical information on the Earnings Tax Returns filed for the respective Evaluation Years. The IT returns information for the Evaluation 12 months 2023-24 was revealed in June 2024 and is obtainable at revenue tax division official web site. (The Earnings Tax Return statistics for AY 2024-25 might be obtainable after March 2025.)
As per this information, round 7.5 crore particular person tax assessees have filed their revenue tax returns for the Evaluation 12 months 2023-24. The under desk has the small print in regards to the revenue vary, variety of returns that have been filed, common gross revenue for the given revenue vary and the cumulative per centage of the ITRs that have been filed.
| Earnings Vary (in INR) | No of ITRs | Common Gross Complete Earnings (in Lakh INR) |
Cumulative % |
|---|---|---|---|
| < 0 | – | – | – |
| = 0 | 214,914 | – | 0.2848 |
| 0 and <=1,50,000 | 31,94,597 | 0.71 | 4.5182 |
| 150,000 and <= 2,00,000 | 13,69,529 | 1.76 | 6.3331 |
| 2,00,000 and <=2,50,000 | 26,57,722 | 2.32 | 9.8551 |
| 2,50,000 and <= 3,50,000 | 56,44,045 | 3.03 | 17.3345 |
| 3,50,000 and <= 4,00,000 | 39,53,743 | 3.75 | 22.5739 |
| 4,00,000 and <= 4,50,000 | 59,32,002 | 4.26 | 30.4349 |
| 4,50,000 and <= 5,00,000 | 1,25,11,491 | 4.81 | 47.0149 |
| 5,00,000 and <= 5,50,000 | 60,86,356 | 5.22 | 55.0804 |
| 5,50,000 and <= 9,50,000 | 2,04,02,971 | 6.99 | 82.1181 |
| 9,50,000 and <= 10,00,000 | 10,60,450 | 9.75 | 83.5234 |
| 10,00,000 and <= 15,00,000 | 62,28,002 | 12.05 | 91.7766 |
| 15,00,000 and <= 20,00,000 | 24,27,058 | 17.16 | 94.9929 |
| 20,00,000 and <= 25,00,000 | 11,92,990 | 22.25 | 96.5739 |
| 25,00,000 and <= 50,00,000 | 18,43,287 | 33.87 | 99.0165 |
| 50,00,000 and <= 1,00,00,000 | 5,14,814 | 67.51 | 99.6988 |
| 1,00,00,000 and <=5,00,00,000 | 2,10,693 | 177.68 | 99.9780 |
| 5,00,00,000 and <=10,00,00,000 | 10,386 | 679.58 | 99.9917 |
| 10,00,00,000 and <=25,00,00,000 | 4,438 | 1,486.75 | 99.9976 |
| 25,00,00,000 and <=50,00,00,000 | 1,077 | 3,425.89 | 99.9990 |
| 50,00,00,000 and <=100,00,00,000 | 436 | 6,940.28 | 99.9996 |
| 100,00,00,000 and <=500,00,00,000 | 262 | 18,344.57 | 100 |
| 500,00,00,000 | 23 | 79,650.91 | 100 |
| Complete | 7,54,61,286 |
* Gross Complete Earnings is the revenue earlier than chapter VI-A deduction as computed within the “Computation of whole revenue” schedule of return of revenue.
* The “Common Gross Complete Earnings” is the common Gross Complete Earnings inside the worth vary slab i.e. “Sum of Gross Complete Earnings” divided by whole variety of returns inside the worth vary slab. Gross Complete Earnings is the revenue earlier than chapter VI-A deduction as computed within the “Computation of whole revenue” schedule of return of revenue.
- Practically 7.5 crore people filed their Earnings Tax Returns in the course of the evaluation 12 months 2023-24. Out of this, almost 6.3 crore people reported an revenue of lower than Rs 10 lakh.
- Round 91% of the filed ITRs fall below the common gross whole revenue of Rs 12,05,000.
- This successfully implies that 9 out of 10 particular person taxpayers might now pay zero revenue tax w.e.f FY 2025-26. It is a vital reduction to the Indian middle-class tax payers!
- Though the brand new tax reduction proposal is on regular revenue solely and incomes like capital beneficial properties are taxable at totally different charges. Nonetheless this can be a nice reduction to the assessees, contemplating the much less variety of ITRs with capital beneficial properties, as one of many sources of incomes.
- The central authorities sees a income lack of round Rs 1 lakh crore after the implementation of the revised revenue tax slab charges.
Proceed studying..
(Submit first revealed on 03-Feb-2025) (Reference : incometaxindia.gov.in)
