Got higher salary this April? Here's why?

Salaried individuals opting for the new tax regime have seen a pleasant surprise in their April paychecks, thanks to the income tax cuts announced in Budget 2025. With the new tax rates taking effect from April 1, employers have deducted lower tax at source (TDS), resulting in higher take-home pay.

Under the revised slab rates, the monthly increase in net salary ranges from ₹2,900 to ₹9,100, depending on the taxpayer’s income bracket. Employees earning a net taxable income above ₹24 lakh annually have benefited the most, receiving a flat monthly boost of around ₹9,100.

For many, this extra income feels like an unexpected bonus. “It’s like getting a small increment without waiting for an appraisal,” said a Bengaluru-based software professional. The reduced TDS allows more disposable income each month, potentially easing financial pressures or boosting savings.

The government had positioned the new tax regime as a simplified and more rewarding structure for taxpayers, especially for those who do not claim multiple exemptions or deductions. While some salaried individuals continue to prefer the old regime for its deductions under sections like 80C and 80D, many are now shifting to the new system, attracted by its straightforward lower rates.

Financial advisors suggest that employees reassess their tax regime choices based on their personal finances and planned investments. As the new rates reflect in salaries from April, taxpayers will feel the impact throughout the financial year, leading to higher take-home pay without waiting until tax refunds.