Union Budget made easy for Salaried People: How much you will Save?

Photo Courtesy: india.com

Let me put things in very simple and non technical way for Salaried People to understand. So here are relevant announcements which will affect our pay and savings.

No Tax for individual upto income of Rs 12.75 Lakh(Incl Standard Deduction). But please understand tax slab starts from 4 lakh and if you pay crosses even Re 1 above Rs 12.75 Lakh , you will be taxed at slab rate starting from Rs 4 lakh.
The announcements of change in tax/Tax slabs is only for New Scheme. Old scheme remains unchanged.
This change is not applicable in this FY earnings i.e. your Taxes remain unchanged for FY 2024-25/AY 2025-26. This will come into effect from Next Fyi e Fy 2025-26/AY 2026-27.
First lets understand how slabs have changed post budget announcement for this FY and next FY.

TAX SLABS IN FY 2024-25 NEW SCHEME		TAX SLABS IN FY 2025-26 NEW SCHEME
0— 3 Lakhs	0 %	0—- 4 Lakhs	0 %
3— 7 Lakhs	5 %	4—- 8 Lakhs	5 %
7—- 10 Lakhs	10 %	8—- 12 Lakhs	10 %
10— 12 Lakhs	15%	12— 16 Lakhs	15 %
12— 15 Lakhs	20 %	16— 20 Lakhs	20 %
Above 15 Lakhs	30 %	20— 24 Lakhs	25 %
		24 Lakhs and Above	30%

The Table below gives comparison between Fy 2024-25 and Fy 2025-26 savings due to this budget announcement

SNo	Approx Annual Income in Rs	Tax as per FY 2024—25 (upper limit calculations)	Taxes as new announcement for FY 2025-26	Savings in Tax
1	Upto 12.75 lakhs	Rs 60,000	Zero tax	Rs 60,000
2	12.75 – 16 Lakhs	Rs 1,70,000	Rs 1,20,000	Rs 50,000
3	16 to 20 Lakhs	Rs 2,90,000	Rs 2,00,000	Rs 90,000
4	20 to 24 Lakhs	Rs 4,03,000	Rs 2,92,500	Rs 1,10,500
5	24 to 30 Lakhs	Rs 5,90,000	Rs 4,75,800	Rs 1,14,200
6	30 to 40 Lakhs	Rs 9,02,000	Rs 7,87,800	Rs 1,14,200
7	40 to 45 lakhs	Rs 10,58,200	Rs 9.43,800	Rs 1,14,400
8	50 Lakhs	12,14,200 (surcharge not taken into acct)	10,99,800 (surcharge not taken into acct)	Rs 1,14,400

Also, please remember no change is required to be done if you opted any of scheme for this year, as this tax change is not applicable for this FY.
Old tax scheme has definitely taken a big set back as no change in slabs of old tax scheme . Status Quo remains. So on case to case basis , old tax can be compared for tax savings. Generally for 80-90% of us New Tax scheme will be more beneficial due to creation of huge slab gaps now.
Finally, congratulations, huge tax savings has been made in your salary slips and bank

accounts. As we all know “Money Saved is Money Earned”!!