Budget 2025: No tax on income up to ₹12 lakh
New Delhi: The Finance Minister, Nirmala Sitharaman, on Saturday announced income tax relief in the Budget for 2025-26. She also announced new income tax slabs.
Presenting her 8th Budget, she said under the new tax regime, there would not be any tax on annual income up to Rs 12 lakh. Financial experts believe that the middle class will benefit the most from this tax relief.
The standard deduction for the salaried class has been kept at Rs 75,000, making an annual income of Rs 12,75,000 tax-free. As a result, employees earning 12,75,000 will not have to pay the income tax. The Finance Minister announced the new tax rates at the end of her 75-minute Budget speech, drawing applause from her fellow parliamentarians.
Employees earning more than Rs 12 lakh annually will have to pay the income tax under the revised slab. The government has fixed tax rebate at Rs 60,000 for the employees under the new tax regime, as per Section 87A. This means that on an annual income of Rs 12 lakh, the income tax of Rs 60,000 will be waived as a rebate.
The government has also provided tax relief to senior citizens by increasing the tax exemption limit on interest from Rs 50,000 to Rs 1 lakh.
Home Minister Amit Shah termed the 2025 Budget a “blueprint of the Modi government’s vision for building a developed and prosperous India in every field”.
