New Delhi, Feb. 7 -- In Budget 2025, Finance Minister Nirmala Sitharaman revised the income slabs under the new tax regime, thus offering relief to the middle-class taxpayers.

Now, there is no income tax payable for those earning up to Rs.12 lakh. However, if you have seen the tax slabs, you must have noticed that there is no income tax upto Rs.4 lakh but there is 5 percent for income in the range of 4-8 lakh and 10 percent for income in the range of 8-12 lakh.

So, when there is no tax for income upto Rs.12 lakh, why do these slabs suggest otherwise?

This happens because the tax payable gets nullified against the rebate offered upto Rs.60,000. Beyond this rebate, the tax is payable.

Let us understand how this works.

As the table abov...