New Delhi,9Orissa Today) Feb 1: In a major relief for the middle class, Union Finance Minister Nirmala Sitharaman announced on Saturday that individuals earning up to ₹12 lakh per annum will now be exempt from paying income tax. The announcement came while presenting the Union Budget for 2025-26 in Parliament.
Recognizing the middle class as a key pillar of the economy, Sitharaman stated, “We have periodically reduced the tax burden. I am happy to announce that there will be no income tax for individuals earning up to ₹12 lakh.”
Revised Income Tax Slabs:
Up to ₹4 lakh – No tax
₹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%
For salaried employees, the nil tax limit has been extended to ₹12.75 lakh per annum, factoring in a standard deduction of ₹75,000.
Additional Reliefs:
Senior Citizens: Tax deduction limit doubled to ₹1 lakh.
TDS & TCS: TDS limit on rent raised from ₹2.4 lakh to ₹6 lakh; LRS remittance threshold increased from ₹7 lakh to ₹10 lakh.
Tax Filing: The updated return filing window extended from two years to four years.
Education Loans: TCS on remittances for education loans waived.
NSS Withdrawals: Exempted from tax starting August 2024.
The new tax structure aims to provide substantial relief to taxpayers while simplifying the process.
Union Budget 2025-26: No income tax up to ₹12 lakh, major relief for middle class
