Finance Minister Nirmala Sitharaman on Saturday announced Budget 2025 in the Lok Sabha. FM Sitharaman who remains under the scanner of people including on social media for levying hefty taxes, presented the Budget 2025 and gave a huge relief to the middle class. Finance Minister Nirmala Sitharaman announced that there will be no income tax up to Rs 12 lakh. Sitharaman also announced new tax slabs stating that new income tax bill will be introduced in the upcoming days.
FM Sitharaman announced, "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."
New Income Tax Slabs in Budget 2025
In relief for middle class, Nirmala Sitharaman announces no income tax payable up to income of Rs 12 lakh. Here’s how the slabs look like now:
- Rs 0-4 lakh — Nil
- Rs 4-8 lakh — 5%
- Rs 8-12 lakh — 10%
- Rs 16-20 lakh — 20%
- Rs 20-24 lakh — 25%
- Above Rs 24 lakh — 30%
Finance Minister Nirmala Sitharaman said, “Resident individual with total income up to ₹7,00,000 do not pay any tax due to rebate under the new tax regime.” She added, "It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ` ₹12,00,000."
"Marginal relief as provided earlier under the new tax regime is also applicable for income marginally higher than ₹12,00,000," added Sitharaman.
