Govt Eases Middle-Class Burden: No Tax Up to ₹12 Lakh, But Crossing It Triggers Tax from ₹4 Lakh
In a major relief for middle-class taxpayers, finance minister Nirmala Sitharaman announced that individuals earning up to ₹12 lakh per year will now pay zero income tax under the new tax regime. For salaried taxpayers, this limit will be ₹12.75 lakh, factoring in the ₹75,000 standard deduction. “Our government has consistently reduced the tax burden on the middle class, recognising their immense contribution to nation-building,” Sitharaman stated. “From raising the nil tax slab to ₹2.5 lakh in 2014, ₹5 lakh in 2019, and ₹7 lakh in 2023, we have now taken a significant step forward by ensuring no income tax is payable up to ₹12 lakh.” Under the revised tax regime, individuals earning up to ₹12 lakh annually will not be required to pay any income tax. For those earning above ₹12 lakh, the government has also revamped tax slabs to provide broader benefits: ₹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% Additionally, a rebate has been introduced for incomes up to ₹12 lakh, ensuring no tax liability beyond the relief from slab rate changes. For instance, a taxpayer earning ₹12 lakh under the new regime will save ₹80,000, effectively eliminating their tax liability under existing rates. The revised tax structure aims to boost household consumption, savings, and investments, further strengthening the middle class and the broader economy.
For salaried taxpayers, this limit will be ₹12.75 lakh, factoring in the ₹75,000 standard deduction.
For salaried taxpayers, this limit will be ₹12.75 lakh, factoring in the ₹75,000 standard deduction.
["middle class", "Union Budget 2025"]
["Go", "Union Budget 2025", "programming_languages:R", "AI", "programming_languages:Go", "Aim", "middle class", "R"]
["AI", "Aim", "R", "Go", "programming_languages:R", "programming_languages:Go"]
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