Budget 2025: Impact on Your Personal Finances

The Union Budget 2025-26 introduced several changes that directly impact individual taxpayers and investors. Here's what you need to know.

Income Tax Changes The new tax regime has been made more attractive with revised slabs: - No tax up to ₹4 lakh (increased from ₹3 lakh) - 5% for ₹4-8 lakh - 10% for ₹8-12 lakh - Standard deduction increased to ₹75,000

For someone earning ₹15 lakh, the new regime now saves approximately ₹17,500 more compared to last year.

Capital Gains Tax - LTCG on equity remains at 10% above ₹1 lakh threshold - STCG on equity remains at 15% - Indexation benefit removed for property purchased after July 2024

NPS Changes - Employer NPS contribution limit raised to 14% of basic salary (from 10%) for private sector - Additional tax benefit makes NPS even more attractive for retirement planning

Standard Deduction Increased to ₹75,000 from ₹50,000 — benefits everyone under both old and new tax regimes.

Insurance - No changes to Section 80D deduction limits - Health insurance premium GST under review

Key Comparisons 1. Re-evaluate old vs new tax regime with the updated slabs 2. Increase NPS contributions if employer offers it 3. The standard deduction increase helps everyone — no action needed 4. Review your investment strategy if you're holding real estate for capital gains