NEW DELHI: Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, highlighting economic growth, inclusive development, and empowerment of India’s middle class.
In her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced significant relief for taxpayers by exempting income up to Rs 12 lakh from income tax.
She emphasized that the new tax regime would be streamlined, focusing on providing greater benefits to the middle class.
Additionally, Sitharaman announced revisions to income tax slabs and rates to establish a more progressive taxation system.
Under the new structure, individuals earning up to Rs 25 lakh will see a tax reduction of up to Rs 1.1 lakh, providing relief to middle-income groups.
The revamped tax regime exempts individuals earning up to Rs 12 lakh from income tax, with salaried taxpayers benefiting from a higher exemption of Rs 12.75 lakh, including a standard deduction of Rs 75,000.
These revised tax slabs aim to offer substantial relief to the middle class, allowing them to retain more of their earnings while boosting household consumption, savings, and investment.