Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in the Lok Sabha. Sitharaman presented the first full budget of the third term of the Modi government at the Centre on Saturday. The middle class of the country, which was burdened with the tax burden of the past, wanted to get some relief from the upcoming budget (Budget 2025). After Finance Minister Nirmala Sitharaman's announcement on income tax, there will be no tax on income up to Rs 12.75 lakh per annum.
Finance Minister Sitharaman has announced a big relief for the middle class in the next financial year. While presenting the budget proposal, she said, "The government is relying on the middle class. So this decision has been taken."
After the presentation of the general budget for the financial year 2025-26 presented by Finance Minister Nirmala Sitharaman in Parliament, taxpayers will not have to pay a single rupee of income tax on income up to Rs 12.75 lakh per annum under the new tax regime. In her announcement in the Union Budget on Saturday, February 1, the finance minister said, "Tax has been kept at zero for salaried employees of government and private organisations on income up to Rs 12.75 lakh per annum.''
Nirmala Sitharaman announced the new tax slab in her budget speech. She said that in the new slab, the tax amount has been kept at zero on income between zero and four lakh rupees. Income between Rs 4 lakh and Rs 8 lakh will be taxed at 5%, Rs 8 lakh to Rs 12 lakh at 10%, and Rs 12-16 lakh at 15%. However, the government will give tax exemption in various ways on income up to Rs 12 lakh.
In the new slab, 20% tax will be levied on income between Rs 16 lakh and Rs 20 lakh, 25% on income between Rs 20 lakh and Rs 24 lakh, and 30% on income above Rs 24 lakh. Till now, there was no tax on income up to Rs 3 lakh per annum. If the income is between Rs 3 lakh and Rs 7 lakh per annum, the tax was 5%.
According to the old slab of the new tax regime, the Centre had imposed a 10% tax on income between Rs 7 lakh and Rs 10 lakh. Income between Rs 10 lakh and Rs 12 lakh is taxed at 15%, Rs 12 lakh to Rs 15 lakh at 20%, and above Rs 15 lakh at 30%. In his budget speech, the finance minister announced that a new income tax bill will be introduced next week. She made it clear that the tax rules will be made much easier.
