The changes made in Budget 2025 by the government have been specifically beneficial for middle income earners who earn salary income. In recent times, there has been relaxation of slab rates, extension of deductions available to salary income, and other deductions made available to assessees which would help to save taxes. Check out the below article to know all the tax saving options available for the income range of Rs.13,00,000. Please note that this article applies only to tax implications pertaining to the financial year 2025-26 only.New Tax Regime Slab RatesThe salary income earned up to Rs.12.75 Lakhs will ultimately have Nil tax liability. Here's how!The revised slab rates for new tax regime applicable for FY 2025-2026 is as follows:As per the latest Finance Act 2025, changes have been made in the slab rate for the new tax regime applicable for FY 25-26 as follows - Income Tax SlabsTax RateUp to Rs. 4,00,000NILRs.

The need to simplify the existing tax laws, which are complicated more often than not, was first felt by the lawmakers in the year 2009. On February 7, 2025, the new Income Tax Bill, 2025 was approved by the Cabinet and has now been tabled in the parliament. Once the bill is passed in the Parliament, it will become an act or code whatsoever. If passed in parliament, the new Income Tax Bill will become effective on 1st April 2026.Let's look at the key differences between the existing Income Tax Act and the proposed Income Tax Bill 2025.Structural ChangesThe new Income Tax Bill has reduced content as compared to the current Income Tax Act. The section count has been reduced from more than 700 odd sections to 536. For example, Section 80C is different from Section 80D. In the new bill, all clauses (or sections) are numbered sequentially, without the use of alphabets in the section numbers.