Brief by Shorts91 Newsdesk / 06:14am on 02 Feb 2025,Sunday India
The Union Budget 2025 introduced a zero-tax benefit for those earning up to ₹12 lakh. However, individuals with taxable income slightly above ₹12 lakh face a sharp tax jump. If income reaches ₹12.1 lakh, tax liability rises to ₹61,500, reducing take-home pay by ₹51,500 compared to someone earning ₹12 lakh. Full parity in take-home salary is only reached at ₹12.71 lakh, where tax amounts to ₹70,500. This structure means marginal salary increases can lead to lower take-home income, creating concerns over tax burden distribution.
