Short-term capital gains are taxed at 20%, and long-term capital gains on equities are taxed at 12.5% after exemptions. So, the ones making profits from investments will have to pay taxes to the government.

The next slab is Rs 4-8 lakh where the tax rate is 5%, followed by 10% in the Rs 8-12 lakh slab, 15% in the Rs 12-16 lakh slab, 20% in the Rs 16-20 lakh slab, and 25% in the Rs 20-24 lakh slab. It’s flat 30% above Rs 24 lakh.

Congress MP Shashi Tharoor commented on the new income tax proposal announced by Finance Minister Nirmala Sitharaman during the Budget 2025 speech on Saturday. FM Sitharaman announced the abolition of income tax until ₹12 lakh under the new tax regime.