The Central Government has recently revealed the Union budget 2025-26. The finance mister Niramala Sitaraman has announced no tax for up to Rs 12lakh. But do you know you can also enjoy Rs 12 lakh income tax free from fixed deposits too. How? There must be some twist. Yes! You are right, today we will discuss about how this works with example.
Rs 12 Lakh from Fixed Deposit Tax-Free
As the budget 2025 has come out tax payers who are in the new tax regime will no longer have to pay tax up to rs 12 lakh income from 1st April 2025. For salaried individuals, these figures are Rs 12.75 Lakh with a standard deduction of Rs 75,000. There is also a 60,000 rebate under section 87A. This means if you have a 12 lakh per year income you don’t need to pay any taxes.
New Income Tax Slabs
The new tax regime features updated slabs:
- Nil Tax: Up to Rs 4 lakh
- 5% Tax: Rs 4 lakh – Rs 8 lakh
- 10% Tax: Rs 8 lakh – Rs 12 lakh
Additional slabs exist for higher income brackets, with a maximum rate of 30% for incomes above Rs 24 lakh.
These new slabs will be beneficial for people who rely on interest from bank schemes like Fixed Deposit. If you look at the tax slabs and calculate the numbers a person will save Rs 83200 in taxes from 1st April 2025.