Income Tax
Union Budget 2025: No income tax payable upto Rs. 12 lakh
Giving relief to Indian taxpayers and giving a boost to consumption, Union Finance Minister Nirmala Sitharaman on Saturday announced in her budget speech that people with salaries up to 12 lakhs will not be required to pay tax in the new tax regime.
Changes in the tax slabs were also announced.
"New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment," Nirmala Sitharaman announced in her budget speech.
📢 Zero Income Tax till ₹12 Lakh Income under New Tax Regime
— PIB India (@PIB_India) February 1, 2025
▶️ Slabs and rates being changed across the board to benefit all tax-payers
▶️ New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings… pic.twitter.com/QzJ4nCVD0k
As per the official announcement, people, under the new tax regime, will not need to pay tax up to Rs. 12 lakh (Rs.12.75 lakh for salaried taxpayers with standard deduction of Rs. 75,000).
What did Nirmala Sitharaman say in her speech?
The Finance Minister said, “There will be no income tax payable upto income of Rs. 12 lakh (i.e. average income of Rs.1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs.12.75 lakh for salaried tax payers, due to standard deduction of Rs. 75,000.”
"Tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them," she added.
Sitharaman said, “The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment.”
Union finance minister Nirmala Sitharaman presents Budget 2025 for the historic eighth time on Saturday.
This is the first full budget since PM Narendra Modi-led government returned to power for the third term but with a diminished majority.
The new tax slab is given below:
0-4 lakh rupees: Nil
4-8 lakh rupees: 5%
8-12 lakh rupees: 10%
12-16 lakh rupees: 15%
16-20 lakh rupees: 20%
20-24 lakh rupees: 25%
Above 24 lakh rupees: 30%
How much tax benefit will you enjoy now?
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
