Budget 2025-26: The new tax board of the banker-real relief or digital game?
Is this tax cut real or digital game?
Whenever the government announces a new tax board, salary professionals (especially bankers) are excited. Will there be more salary this time? Or is it another adjustment that looks good but not much change?
The budget 2025-26 launched a new tax rate, which is low in tax rate, and the rebate makes income Up to 1.2 million rupeesEssence But the biggest problem is:
- Will this actually increase your salary?
- Should bankers transfer to the new tax system or insist on the old tax system?
- What will happen if you have a house loan, 80C investment or HRA deduction amount?
Let’s decompose it with simple terms-what is changing, who benefits, and how it affects bankers with different income levels.
FY 2025-26’s new tax board
According to the budget document, the structure of the new tax system is as follows:
| Total income (€) | tax rate |
|---|---|
| Up to 400,000 rupees | zero |
| 4,00001 to 8,000,000 rupees | 5 % |
| 8,00001 to 12,000,000 rupees | 10 % |
| 12,00001 rupees to 1600,000 rupees | 15 % |
| 1 16,00001 to 20,000,000 rupees | 20 % |
| 20,00,001 rupees to 2400,000 rupees | 25 % |
| More than 24,000,000 rupees | 30 % |
The biggest highlight? If your salary is 1.2 million rupees or below, you will not pay any taxes at all Rebate In this budget.
But before celebrating, let’s take a look at who really benefited from this change and who did not benefit.
The rebate of the middle class (₹ 12L income is not taxed)
The government provides 100 % tax refund Applicable to individuals under the new tax system up to 1.2 million rupees. But how does it actually work?
- If your income is as high as 1.2 million rupees → you pay zero tax due to rebate benefits.
- If your salary is 1.275 million rupees → you still have to pay zero tax, which is due to the standard deduction of the salary employee 75,000 rupees.
- If your income is slightly higher than 1.2 million rupees, marginal relief can ensure that you will not suddenly jump into the high tax board.
Examples in real life: The way of work of this pair of bankers
Suppose PSU Bank’s scale II official AMIT earns 1.25 million rupees each year. How much tax will he pay under this new structure?
1️⃣ Income: 12,50,000 rupees
2️⃣ Standard deduction: 75,000 rupees
3️⃣ taxable income = ₹ 11,75,000
4️⃣ Since it is less than 1.2 million rupees, the full discount = zero tax!
Earlier, Amit could pay 40,000-50,000 rupees under the old regime, but now his entire tax burden has been eliminated.
Judgment: If your income is less than 1.275 million rupees, you will pay zero tax under this new system!
The impact on the salary of different levels
Bleak For clerk and junior officials (Scale-I) → More salary brought home!
- Most beginners earn 7-100 million rupees each year, which means that they will now pay the minimum tax.
Bleak SCALE-II & III → Save the best tax!
- Those who earn 100-1.25 million rupees are now paying zero tax due to rebates and standard deductions.
Bleak The person in charge of senior officials and branches (15L+) → No great benefits!
- The higher tablet still means 20-30 % of taxes, and many tax saving deductions of the old regime have disappeared.
Warning: If your income is 您 16L+, this tax structure is not available compared with the tax structure within 8-12L.
Should bankers transfer to a new tax system?
The government is actively promoting the new tax system, but is it really better for the banker? It’s not always the case.
if:
除 You will not require a lot of deductions (house loans, PPF, LIC, NPS, ELSS).
收 When you get zero tax discount, your income is 12L or higher.
文 You want to use less document work for simpler tax calculations.
if:
1. You pay the house loan EMI and pinpoint interest deduction (₹ 2L benefits).
2. You invest in 80C (LIC, ELSS, PPF, NPS, etc.), which helps reduce taxes.
3. You will get high HRA benefits (people who rents under the new system).
In the end, it is recommended that if you rely on tax evasion, keep intelligent in the old system. If not, switch to the new structure may help.
In the end: Is this really the tax reduction and exemption of the banker?
At first glance, this tax reform looks great-simplified tablet, the tax-free revenue of up to 12L rupees, and the reduction of the tax rate of most paid professionals.
But this is the basic reality:
- This is indeed a victory for banks who earn 8-12 liters. More money is in your hands.
- For those who earn 15 rupees+, the income can be ignored. The tax is almost the same as before.
- For those who have family loans, LIC, PPF and HRA welfare, the old system can still save more.
Don’t turn blindly-Calculate your tax rate under two systems before deciding!
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