90% of Tax payers can have Zero Tax Legal responsibility? (Finances 2025)


The Union Finances 2025 has given a terrific aid to the middle-class tax payers by asserting discount in tax slab price and hike in tax rebate. This hike ensures that these incomes as much as Rs 12 lakh can have zero tax legal responsibility for the Monetary Yr 2025-26 (AY 2026-27).

Is that this new proposal going to have important affect on the tax paying people? What per centage of tax-payers are going to learn with this hike in tax rebate?

Allow us to undergo the vital and related knowledge supplied by the Revenue Tax Division on this regard!

9 out of 10 particular person tax payers might now have NIL earnings tax legal responsibility

Yearly, the IT division publishes the statistical knowledge on the Revenue Tax Returns filed for the respective Evaluation Years. The IT returns knowledge for the Evaluation Yr 2023-24 was printed in June 2024 and is out there at earnings tax division official web site. (The Revenue Tax Return statistics for AY 2024-25 will likely be obtainable after March 2025.)

As per this knowledge, round 7.5 crore particular person tax assessees have filed their earnings tax returns for the Evaluation Yr 2023-24. The beneath desk has the main points concerning the earnings vary, variety of returns that had been filed, common gross earnings for the given earnings vary and the cumulative per centage of the ITRs that had been filed.

Revenue Vary (in INR)No of ITRsCommon Gross Complete Revenue
(in Lakh INR)
Cumulative %
< 0
= 0214,9140.2848
0 and <=1,50,00031,94,5970.714.5182
150,000 and <= 2,00,00013,69,5291.766.3331
2,00,000 and <=2,50,00026,57,7222.329.8551
2,50,000 and <= 3,50,00056,44,0453.0317.3345
3,50,000 and <= 4,00,00039,53,7433.7522.5739
4,00,000 and <= 4,50,00059,32,0024.2630.4349
4,50,000 and <= 5,00,0001,25,11,4914.8147.0149
5,00,000 and <= 5,50,00060,86,3565.2255.0804
5,50,000 and <= 9,50,0002,04,02,9716.9982.1181
9,50,000 and <= 10,00,00010,60,4509.7583.5234
10,00,000 and <= 15,00,00062,28,00212.0591.7766
15,00,000 and <= 20,00,00024,27,05817.1694.9929
20,00,000 and <= 25,00,00011,92,99022.2596.5739
25,00,000 and <= 50,00,00018,43,28733.8799.0165
50,00,000 and <= 1,00,00,0005,14,81467.5199.6988
1,00,00,000 and <=5,00,00,0002,10,693177.6899.9780
5,00,00,000 and <=10,00,00,00010,386679.5899.9917
10,00,00,000 and <=25,00,00,0004,4381,486.7599.9976
25,00,00,000 and <=50,00,00,0001,0773,425.8999.9990
50,00,00,000 and <=100,00,00,0004366,940.2899.9996
100,00,00,000 and <=500,00,00,00026218,344.57100
500,00,00,0002379,650.91100
Complete7,54,61,286
Particular person ITRs – Vary of Gross Complete Revenue (AY 2023-24)
  • Practically 7.5 crore people filed their Revenue Tax Returns through the evaluation 12 months 2023-24. Out of this, almost 6.3 crore people reported an earnings of lower than Rs 10 lakh.
  • Round 91% of the filed ITRs fall underneath the typical gross whole earnings of Rs 12,05,000.
  • This successfully signifies that 9 out of 10 particular person taxpayers might now pay zero earnings tax w.e.f FY 2025-26. It is a important aid to the Indian middle-class tax payers!
  • Despite the fact that the brand new tax aid proposal is on regular earnings solely and incomes like capital good points are taxable at totally 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 earnings tax slab charges.

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