New tax regime offers potential savings starting April 2025

Starting April 1, 2025, a new tax regime will offer potential savings for taxpayers compared to the old system. Salary income up to Rs 12.75 lakh will be tax-free, and a standard deduction of Rs 75,000 will apply. The new tax structure features lower rates, with income up to Rs 4 lakh remaining tax-free. Taxpayers could see an 8% reduction in liabilities, especially those with fewer deductions under the old regime. This change aims to simplify tax filing and lower rates without requiring numerous deductions. Taxpayers should evaluate their individual financial situations to determine which regime is more beneficial for them.