The Union Price range 2025 has given an incredible aid to the middle-class tax payers by saying discount in tax slab fee and hike in tax rebate. This hike ensures that these incomes as much as Rs 12 lakh could have zero tax legal responsibility for the Monetary Yr 2025-26 (AY 2026-27).
Is that this new proposal going to have important impression 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 vital and related information supplied by the Earnings Tax Division on this regard!
9 out of 10 particular person tax payers could 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 Yr 2023-24 was printed 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 Yr 2023-24. The beneath desk has the main points in regards to the revenue vary, variety of returns that had been filed, common gross revenue for the given revenue vary and the cumulative per centage of the ITRs that had been filed.
| Earnings Vary (in INR) | No of ITRs | Common Gross Whole 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 |
| Whole | 7,54,61,286 |
* Gross Whole Earnings is the revenue earlier than chapter VI-A deduction as computed within the “Computation of complete revenue” schedule of return of revenue.
* The “Common Gross Whole Earnings” is the common Gross Whole Earnings throughout the worth vary slab i.e. “Sum of Gross Whole Earnings” divided by complete variety of returns throughout the worth vary slab. Gross Whole Earnings is the revenue earlier than chapter VI-A deduction as computed within the “Computation of complete revenue” schedule of return of revenue.
- Practically 7.5 crore people filed their Earnings Tax Returns through the evaluation yr 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 underneath the common gross complete revenue of Rs 12,05,000.
- This successfully implies that 9 out of 10 particular person taxpayers could now pay zero revenue tax w.e.f FY 2025-26. It is a important aid to the Indian middle-class tax payers!
- Although the brand new tax aid proposal is on regular revenue solely and incomes like capital good points are taxable at completely different charges. Nonetheless it is a nice aid to the assessees, contemplating the much less variety of ITRs with capital good points, 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.
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(Publish first printed on 03-Feb-2025) (Reference : incometaxindia.gov.in)
