Taxpayers earning up to ₹12.75 lakh annually to pay zero tax under the new regime, thanks to standard deduction benefits.
February 1, 2025: Good news for middle-class taxpayers in Budget 2025! The government has revised tax slabs under the new income tax regime, significantly easing the burden on taxpayers and leaving more disposable income in their hands. Finance Minister Nirmala Sitharaman announced the new structure during her budget speech, aiming to promote consumption, savings, and investment.
Revised Tax Slabs Under the New Regime:
- Up to ₹4 lakh: Nil
- ₹4-8 lakh: 5%
- ₹8-12 lakh: 10%
- ₹12-16 lakh: 15%
- ₹16-20 lakh: 20%
- ₹20-24 lakh: 25%
- Above ₹24 lakh: 30%
Additionally, individuals earning up to ₹12 lakh annually will pay zero tax due to a standard deduction of ₹75,000. This effectively means taxpayers with an annual income of up to ₹12.75 lakh under the new regime will not pay any income tax.
Impact on Middle Class
The government emphasized that the revised structure will significantly reduce the tax burden on the middle class, enhancing their disposable income. This initiative aims to boost household consumption, savings, and investments, thereby contributing to overall economic growth.
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Tags:
Budget 2025, Income Tax, Revised Tax Slabs, Middle-Class Relief, Standard Deduction, Tax Reforms, Disposable Income, Economic Growth, Nirmala Sitharaman.