Browsing: income tax

Retirement planning doesn’t end when you return to India—it evolves. For many Non-Resident Indians (NRIs), one of the most pressing concerns upon relocation is how income tax on retirement benefits in India will apply to their pension, gratuity, or foreign retirement accounts. Understanding the nuances of Indian tax laws can help you avoid surprises and preserve your post-retirement savings. Let’s explore how different types of retirement income are taxed and how provisions like Section 89A can help returning NRIs manage their tax liability more effectively. How Retirement Income Is Taxed in India Retirement benefits are a crucial component of financial…

In a strategic move to invigorate the economy, the Indian government has introduced significant changes to the income tax structure in the Union Budget 2025. These reforms aim to increase disposable income for the middle class, thereby stimulating consumption and fostering economic growth. Revised Income Tax Slabs The new tax regime has substantially increased the tax exemption threshold. Individuals earning up to ₹12 Lakhs annually are now exempt from income tax, a notable rise from the previous cap of ₹700,000. Additionally, the highest tax rate of 30% now applies to incomes above ₹24 lakhs, up from the earlier threshold of…