No Tax on Income Up to ₹12 Lakh: FM Nirmala Sitharaman Announces Major Relief for Middle Class
In a significant relief for the middle class, Finance Minister Nirmala Sitharaman has announced that income up to ₹12 lakh will be exempt from taxation. The new tax structure, aimed at reducing the financial burden on taxpayers, ensures a rebate for income up to ₹12 lakh, except for special income categories.
Under the revised tax regime:
- Taxpayers earning ₹12 lakh will benefit from a tax rebate of ₹80,000.
- Those earning ₹18 lakh will receive a tax benefit of ₹70,000.
New Tax Slabs for FY 2025-26
- Up to ₹4 lakh – No tax
- ₹4-8 lakh – 5%
- ₹8-12 lakh – 10%
- ₹12-16 lakh – 15%
- ₹16-20 lakh – 20%
- ₹20-25 lakh – 24%
- Above ₹25 lakh – 30%
Comparison with FY 2024-25 Tax Slabs
- Up to ₹3 lakh – No tax
- ₹3-7 lakh – 5%
- ₹7-10 lakh – 10%
- ₹10-12 lakh – 15%
- ₹12-15 lakh – 20%
- Above ₹15 lakh – 30%
The revised tax regime is expected to provide substantial savings for salaried individuals and business owners, ensuring a more progressive and taxpayer-friendly system.
