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What is this episode about?
In this episode of the Prime Podcast, Vidya Bala and Bhavana Acharya delve into the significant changes brought about by Budget 2025 to give you a comprehensive understanding of the new tax landscape.
With the changes brought in by Budget 2025, the New Tax Regime has emerged as a more compelling choice for taxpayers. You will understand how the enhanced zero tax slab combined with the 87A benefit for resident individuals, allows tax payers to retain a bigger share of their earnings.
While much attention has focused on benefits for the salaried middle class, this podcast will tell you how retirees stand to gain significantly from these changes. You will see how investment planning and cash flow management is more straightforward and one doesn’t need to take on more risk to be more tax efficient.
The podcast also covers important aspects like clarity on debt fund taxation and suitable income-generating products under the new regime and how equity taxation is increasingly aligning with slab rate taxation.
Key segments in this podcast:
1. Intro 0.00 – 0.05
2. New tax regime benefits 0.05 – 4.17
3. How retirees can make the best of the Rs 12 lakh slab 4.17 – 10.07
4. No more equity risks needed to save tax 10.07 – 12.35
5. Income generating products one can use in the New regime 12.35 – 16.35
6. The narrowing gap between slab rate tax and equity tax for middle class 16.35 – 19.18
7. End Disclaimer – 19.18 – 20.07
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9 thoughts on “Prime Podcast: Budget 2025 and how you can benefit from it”
is there a problem with my question earlier. It is waiting for moderation for nearly four days now. I have some followup comments /questions to post as well and hence this note. You need not post this comment
There is nothing wrong with yoru query. Sorry about the delay. It is a matter of prioritising replies. We usually reply first to our recommendations related queries. Taxes – we do double check as we are not experts and hence the drag 🙂
Thank you very much for the podcast. It is very informative. I needed a couple of clarifications:
1. If I have 2 lakhs under ‘Income from Other Sources’ and 10 lakhs of Short Term Capital Gains taxable at slab rates, will I get the full rebate and have zero tax liability?
2. Will the taxability change if I have 10 lakhs of Long Term Capital Gains taxable at 12.5% along with the 2 lakhs under ‘Income from Other Sources’?
1. Yes, if the STCG does not have a special rate (like specifically taxed at a rate) and falls under slab rate then yes.
2. Yes. The 10 lakh will not qualify for rebate as 12.5% is a ‘special rate’ and does not qualify for rebate.
I believe that the equity income within 4 lakhs would be still tax free as long as it is the only income . is that correct?
An issue of concern would be how reliable this 12L limit for income from debt funds etc in coming years. The next budget might again change some rule which might make it taxable?
Yes, that is the understanding. But it is best to check once with your auditor. The second one – we never know. But since FD, debt funds all now fall under slab rate, their treatement would be the same – one won’t be better than the other – if debt fund goes then FD interest goes. So that is unlikely is my personal view. Vidya
Please go through this example given in ET. After going through this it looks it is a curse had you invested in debt fund before April 2023 and trying to withdraw from April, 2025. Or am I missing anything or example given in ET is wrong ?
https://economictimes.indiatimes.com/mf/analysis/debt-mutual-funds-budget-2025-a-new-way-to-pay-less-tax/articleshow/118055302.cms?from=mdr#
There is no curse. If an asset class enjoys special rate of tax (which debt funds before April 1, 2023 do), then they cannot come under the rebate. Even equity does not come under the Rs 12 lakh limit for rebate.
Quite useful. Could please leave an excel sheet on how we can plan SWP from debt funds along with other passive income like interest and dividend still enjoy the tax benefit as much as possible for retiree’s. please give couple of case studies as well.
Thank you very much for your good work.