Budget 2025: Here are the new Income Tax slabs…
New Delhi :
In a landmark move aimed at easing the financial burden on middle-class taxpayers, Finance Minister Nirmala Sitharaman on Saturday announced that individuals earning up to ₹12 lakh annually will be exempt from paying income tax under the new tax regime.
Presenting the Union Budget 2025 in the Lok Sabha, Sitharaman highlighted the government’s commitment to reducing the tax burden on the salaried class.
“The middle class provides strength to the economy. In recognition of their contribution, we have periodically reduced tax burdens. I am now happy to announce that there will be no income tax up to an income of ₹12 lakh,” she said.
New Income Tax Slabs (2025):
₹0-4 lakh: Nil
₹4-8 lakh: 5%
₹8-12 lakh: 10%
₹12-16 lakh: 15%
₹16-20 lakh: 20%
₹20-24 lakh: 25%
Above ₹24 lakh: 30%
The restructuring of tax slabs is expected to provide substantial relief to salaried individuals, enhancing their disposable income and boosting consumer spending. Experts suggest that the move could positively impact demand, savings, and investments, ultimately driving economic growth.
This revision marks one of the most significant overhauls of India’s income tax structure in recent years and is seen as a strategic step to stimulate the economy while offering relief to millions of taxpayers.
