Union Budget 2025: 5 Smart Tax Moves to Save You Money!
The Union Budget 2025 introduces several key measures aimed at providing financial relief to individual taxpayers. Here are the top five changes that can help you save money or reduce your tax burden:
1. Revised Income Tax Slabs: The government has rationalized the income tax slabs under the new tax regime. Notably, individuals with an annual income of up to ₹12 lakh are now exempt from paying income tax. Additionally, a standard deduction of ₹75,000 has been introduced, effectively making incomes up to ₹12.75 lakh tax-free. For those earning above this threshold, the tax rates have been adjusted to provide further relief.
2. Enhanced Tax Rebate: The tax rebate under Section 87A has been increased from ₹25,000 to ₹60,000 for taxpayers opting for the new tax regime. This enhancement ensures that individuals with incomes up to ₹12 lakh can benefit from a full tax rebate, resulting in zero tax liability.
3. Claiming Multiple Self-Occupied Properties: Previously, taxpayers could claim up to two houses as self-occupied under specific conditions. The new provisions have simplified this process, allowing individuals to claim two houses as self-occupied without needing to meet any specific criteria, potentially reducing taxable income from notional rent.
4. Increased TCS Threshold for Overseas Remittances: The threshold for Tax Collected at Source (TCS) on overseas remittances under the Liberalised Remittance Scheme (LRS) has been raised from ₹7 lakh to ₹10 lakh. This change provides greater flexibility for individuals sending money abroad, especially for purposes like education or family support.
5. No TCS on Educational Remittances from Loans: For overseas remittances made towards educational expenses, TCS will not apply if the remittance is funded through a loan from a specified financial institution. Previously, a 0.5% TCS was applicable on remittances exceeding ₹7 lakh. This exemption reduces the financial burden on students and their families.
By understanding and leveraging these changes, individual taxpayers can effectively manage their finances and maximize their savings in the upcoming fiscal year.
