New Delhi – In a major relief for middle-class taxpayers, Union Finance Minister Nirmala Sitharaman announced in the Budget 2025 session that individuals with salaries up to ₹12 lakh will not be required to pay income tax under the new tax regime.
For salaried taxpayers benefiting from a standard deduction of ₹75,000, the exemption extends up to ₹12.75 lakh.
The revised tax slabs aim to reduce the tax burden on individuals, promoting savings, investment, and increased household consumption. Sitharaman outlined the new tax rate structure as follows:
- Income up to ₹4 lakh – 0%
- ₹4 lakh to ₹8 lakh – 5%
- ₹8 lakh to ₹12 lakh – 10%
- ₹12 lakh to ₹16 lakh – 15%
- ₹16 lakh to ₹20 lakh – 20%
- ₹20 lakh to ₹24 lakh – 25%
- Above ₹24 lakh – 30%
Additionally, Sitharaman stated that taxpayers earning up to ₹12 lakh in normal income (excluding capital gains and other special rate income) will receive a tax rebate, ensuring they pay no tax.
The restructuring of tax slabs is expected to benefit millions, providing financial relief and boosting economic activity. The government’s move reflects its continued efforts to support the salaried class while fostering economic growth.
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