Understanding the New Indian Tax Regime: Budget 2025!

On February 1, 2025, India’s Finance Minister, Nirmala Sitharaman, presented the Union Budget for the fiscal year 2025–26. The budget includes several key measures aimed at stimulating economic growth, enhancing domestic consumption, and fostering inclusive development.

Image from google

The Indian tax system has evolved over the years, with major updates introduced in the new tax regimes of 2020, 2023, and 2025. These changes aim to simplify the tax structure and provide more relief to taxpayers. In this blog, we will explore the key differences between the old and new tax regimes, address common questions, and provide you with a link to a tax calculator to help compute and compare your tax liabilities.

Changes in the New Tax Regimes

Old Tax Regime (1961–2020)

• Standard Deduction: ₹50,000 for salaried employees
• Exemption Limit: ₹5,00,000 (No tax up to this income)

New Tax Regime (2020)