Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament on Saturday. She announced a major relief for income tax payers by revising tax slabs.
No Tax for Income Up to ₹12 Lakh
The finance minister declared that individuals earning up to ₹12 lakh per year will pay no income tax. She introduced a new tax structure with reduced rates:
- ₹0 to ₹4 lakh – No tax
- ₹4 lakh to ₹8 lakh – 5%
- ₹8 lakh to ₹12 lakh – 10%
- ₹12 lakh to ₹16 lakh – 15%
- ₹16 lakh to ₹20 lakh – 20%
- ₹20 lakh to ₹24 lakh – 25%
- Above ₹24 lakh – 30%
The revised structure also includes a tax rebate for those earning up to ₹12 lakh. This ensures they do not have to pay any income tax.
Impact of the New Tax Slabs
The tax relief will benefit middle-class families and increase disposable income. Experts believe it will boost spending and economic growth. The budget’s tax reforms mark a historic move to ease the financial burden on taxpayers.
