The changes will come into effect from the next financial year.
Union Budget 2025 Major Income Tax Slab Relief for Middle Class, Nirmala Sitharaman: In a landmark announcement aimed at easing the financial burden on the middle class, Finance Minister Nirmala Sitharaman declared that no income tax will be payable for annual incomes up to Rs 12 lakh.
Addressing Parliament, the Finance Minister stated, "The middle class provides strength to the economy. In recognition of their contribution, we have periodically reduced the tax burden. I am now happy to announce that there will be no income tax up to an income of Rs 12 lakh."
Revised Tax Slabs:
- Rs 0 - Rs 8 lakh: No Tax
- Rs 8 - Rs 12 lakh: 10%
- Rs 12 - Rs 16 lakh: 15%
- Rs 16 - Rs 20 lakh: 20%
- Rs 20 - Rs 24 lakh: 25%
- Above Rs 24 lakh: 30%
This move is expected to benefit millions of taxpayers, especially the salaried class, and boost disposable income, potentially stimulating economic growth. Analysts believe the revised tax structure will enhance savings and encourage higher consumer spending.
The Finance Minister's announcement was met with widespread appreciation, with experts calling it a significant step toward a more progressive tax system. The changes will come into effect from the next financial year.
