Finance Minister Nirmala Sitharaman on Saturday delivered a significant relief to middle-class taxpayers by making annual income of up to Rs 12 lakh in the new tax regime tax-free.
Key Points
– Slabs and rates being changed across the board to benefit all tax-payers
– New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment
– โNil taxโ slab up to โน12.00 lakh (โน12.75 lakh for salaried tax payers with standard deduction of โน75,000)
Key Highlights of Budget 2025-26
https://getapi.indiatvnews.com/doc/highlights-of-budget-2025-26.pdf
The new tax regime will be:
Zero to Rs 4,00,000โ No Tax
Rs 4,00,000 to Rs 8,00,000 – 5 per cent
Rs 8,00,0001 to Rs 12,00,000 – 10 per cent
Rs 12,00,001 to 16 lakh rupees – 15 per cent
Rs 16,00,001 to 20 lakh rupees – 20 per cent
Rs 20,00,001 to 24 lakh rupees – 25 per cent
Above 24 lakh – 30 per cent
Earlier, the new tax regime exempts income up to Rs 3 lakh. Those earning annually between Rs 3-7 lakh pay 5 per cent tax, Rs 7-10 lakh (10 per cent), Rs 10-12 lakh (15 per cent), Rs 12-15 lakh (20 per cent) and above Rs 15 lakh (30 per cent).
The old tax regime, however, exempts income up to Rs 2.5 lakh from taxes. Income from Rs 2.5-5 lakh attracts 5 per cent tax, and 20 per cent for income between Rs 5 lakh and Rs 10 lakh. A 30 per cent tax is levied on income above Rs 10 lakh.