How much tax will have to be given after major changes in New tax regime? Every taxpayers want to know the answer to this question. In Budget 2025, it has been proposed to make tax free of income up to Rs 12 lakh. After which now taxpayers will not have to pay any tax on income of up to 12 lakhs. At the same time, there has been a change in the tax slab, under which the basic tax exemption has been increased from 3 lakh to 4 lakh rupees.
After this change, we have seen tax calculations ranging from 13 lakh to 30 lakh rupees, but imagine if someone earns Rs 1 crore annually at a special rate income or his salary is Rs 1 crore annually, then how much tax will he have to pay? Let’s know the complete calculation.
New tax slab (2025)
0–4 0%
4–8 5%
8–12 10%
12–16 15%
16–20 20%
20–24 25%
30% above Rs 24 lakh
How much tax on 1 crore salary
According to the New Tax Slab, if your salary becomes Rs 1 crore annually, then you will get a standard deduction of Rs 75000 first. After which your taxable income will be 99 lakh 25 thousand rupees. Now ‘0’ tax will be taken on 0 to 4 lakhs. 20 thousand rupees on 4 to 8 lakh rupees, 40 thousand rupees on 8 to 12 lakh rupees, 60 thousand rupees on 12 to 16 lakh rupees, 80 thousand rupees on 16 to 20 lakh rupees, 1 lakh rupees on 20 to 24 lakh rupees and Income of Rs. 24 lakh i.e. 75.25 lakh rupees will be taxed at Rs. 22.57 lakh 500 rupees.
Now after adding them to each other, the total tax will be 25 lakh 57 thousand 500 rupees. Now you will also have to give 4 percent cess on top of this. That is, net tax will be 26 lakh 59 thousand 800 rupees.
After reducing standard Didlation
1 crore – 75000 = 99.25 lakhs
0-4 0% = 0
4-8 5% = 20,000 rupees
8-12 10% = 40,000 rupees
12-16 15% = 60,000 rupees
16-20 20% = 80000 rupees
20-24 25% = 1 lakh rupees
30% above 24 lakhs = 22.57 lakh 500 rupees
Total tax = 25 lakh 57 thousand 500 rupees
4 % cess on this = Rs 102,300
Net Taxable Income = 26 lakh 59 thousand 800 rupees
(If he does not earns Rs 1 crore from an annual salary, then a standard Didlation of Rs 75000 will not be reduced. Then the entire 1 crore will be considered as taxable income.)