Union Budget 2025-26: Big Relief for Income Tax Payers

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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.

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