ꦑIn a major relief to the middle-class in India, Union Finance Minister Nirmala Sitharaman in her budget speech said that under the new tax regime there will be no income tax to be paid up to an annual income of rupees 12 lakhs. For salaried taxpayers, the limit is rupees 12.75 lakh with standard deduction of rupees 75,000.
Union Budget 2025: No Income Tax Payable Upto Rs 12 Lakh Income Per Annum In New Regime
ꦚAccording to Union Finance Minister Nirmala Sitharaman, the tax slabs under the new regime aim to substantially reduce the burden of taxes for the middle class and to leave more money in their hands, boosting household consumption, savings, and investment.
😼"The middle class provide strengths to the economy. In recognition of their contribution, we have periodically reduced the tax burdens. I am now happy to announce that there will be no income tax up to an income of Rs 12 lakhs", said Finance Minister Nirmala Sitharaman.
The New Tax Slab
✱In her budget speech, the finance minister also announced changes in the tax slabs that aim to substantially reduce the burden of taxes for the middle class and to leave more money in their hands, boosting household consumption, savings, and investment.
The tax slabs and rates are as follows:
0-4 lakh rupees: Nil
4-8 lakh rupees: 5%
8-12 lakh rupees: 10%
12-16 lakh rupees: 15%
16-20 lakh rupees: 20%
20-24 lakh rupees: 25%
Above 24 lakh rupees: 30%
ཧUnder new tax regime, as per PTI, the 'nil' tax slab will apply for annual income up to rupees 12 lakh (rupees 12.75 lakh for salaried tax payers with standard deduction of rupees 75,000).
ITR Filing Extension Announced
🍌Moreover, Sitharaman also announced an extension of the time limit for filing updated returns for any assessment year. The time limit is proposed to be extended from the current two years to four years.
♏The FM also proposed the exemption of TCS (tax collected at source) for remittances for education purposes in cases where education loan is taken from specified financial institutions.
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