Income Tax Above 10 Lakh

Old Vs. New Tax Slabs as per Union Budget 2025

A quick comparison of old tax slabs and new tax slabs as per the latest Union Budget 2025 is as follows:

2025 Union Budget Highlights for Income Above ₹10 Lakh

• Revised Income Tax Slabs: The income tax slabs have been revised. It is essential to review the updated slab structure to understand how your income above ₹10 lakh will be taxed. The changes may include adjustments to tax rates and income thresholds for each slab. 

• New Income Tax Bill: A new Income Tax Bill is expected, which could introduce further changes to the tax system. It's crucial to stay updated on the details of this bill as it may significantly impact your tax calculations.  

• Focus on Simplification: The government's emphasis on simplifying the tax regime could translate to more streamlined processes and potentially easier compliance for higher income earners.  

• TDS/TCS Rationalization: Changes in TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions aim to simplify tax compliance. This could potentially affect how taxes are deducted from your income.  

Key Considerations for Income Above ₹10 Lakh

• New vs. Old Regime: Carefully compare the benefits of the new tax regime with the old regime (with deductions). While the new regime might offer lower headline rates, the old regime allows for various deductions that could significantly reduce your taxable income. Analyze both options based on your specific financial situation.  

• Maximize Deductions: If you opt for the old regime, ensure you are taking advantage of all eligible deductions and exemptions to minimize your tax liability. This includes investments under Section 80C, health insurance premiums, home loan interest, and other applicable deductions.

• Tax Planning: Proactive tax planning is crucial for higher income earners. Consult with a qualified tax advisor to develop a comprehensive tax strategy that aligns with your financial goals. They can help you identify tax-saving opportunities and ensure you are compliant with all regulations.  

• Stay Updated: Keep checking the latest updates on the new Income Tax Bill and any changes to tax laws. Reliable news sources and government websites are your best sources for accurate information.

• Professional Advice: Given the complexity of tax laws and the potential impact on your finances, consulting with a Chartered Accountant or tax professional is highly recommended. They can provide personalized guidance tailored to your specific circumstances.