Union Budget 2025 Updates: Now no Income Tax for Those With Annual Income up to Rs 12 Lakh
No modifications have been announced regarding the previous tax regime. With more disposable income in the hands of Indians, they can spend more, which will boost growth in the economy.
Union Budget 2025 Updates: Giving relief to the middle class and amid falling consumption and slowing GDP growth, Finance Minister Nirmala Sitharaman on Saturday announced that individuals with annual income up to Rs 12 lakh will now have to pay zero tax under the new income tax regime. The previous limit of zero tax under the new tax slab was Rs 7 lakh.
No modifications have been announced regarding the previous tax regime. With more disposable income in the hands of Indians, they can spend more, which will boost growth in the economy.
The Finance Minister said that the government will forego Rs 1 lakh crore as tax revenue from direct taxes and Rs 2,600 cr from indirect taxes. Experts wondered if the capital expenditure budget would need to be cut to accommodate the resulting decrease in tax revenue for the government.
The Rajya Sabha MP Nirmala Sitharaman presented her eighth consecutive union budget 2025 on Saturday (February 1, 2025) – taking her closer to the record ten budgets presented by former Prime Minister Morarji Desai in his lifetime.
Sitharaman said that under the new system, a taxpayer with an income of Rs 12 lakh will get a tax benefit of Rs 80,000; a person with an income of Rs 18 lakh will get a tax benefit of Rs 70,000; a person with an income of Rs 25 lakh will get a tax benefit of Rs 1.10 lakh.
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