New Delhi: In a landmark move aimed at providing substantial relief to taxpayers, the Union Budget 2025-26 has announced sweeping changes in the income tax regime. Under the new provisions, individuals earning up to ₹12 lakh annually will be exempt from paying income tax. For salaried taxpayers, the limit has been extended to ₹12.75 lakh, factoring in a standard deduction of ₹75,000.
Key Highlights of the Budget:
- No Tax on Income Up to ₹12 Lakh: The new tax regime offers complete exemption for individuals earning up to ₹12 lakh per annum.
- Higher Exemption for Salaried Individuals: Salaried taxpayers benefit from an additional standard deduction of ₹75,000, raising their tax-free income limit to ₹12.75 lakh.
- Revised Tax Slabs and Rates: The government has introduced across-the-board reductions in tax slabs and rates, aiming to simplify the tax structure and benefit all categories of taxpayers.
- Focus on Middle-Class Relief: The changes are expected to result in substantial tax relief for the middle class, potentially boosting household savings and consumer spending.
Finance Minister’s Statement:
Presenting the budget in Parliament, Finance Minister Nirmala Sitharaman stated, “This budget is designed to ease the tax burden on the common citizen, stimulate economic growth, and encourage savings. By restructuring the tax slabs and offering higher exemptions, we aim to empower the middle class and promote financial inclusivity.”
Impact on Taxpayers:
The revised tax structure is anticipated to benefit millions of taxpayers across the country. Experts suggest that the increased disposable income will lead to higher consumer spending, thereby positively impacting economic growth.
A senior Tax consultant remarked, “The new tax regime is a game-changer, especially for the salaried class. It simplifies compliance and offers significant financial relief.”
Reactions from the Public:
The budget announcement has been met with widespread approval. A salaried professional from Lucknow, expressed, “This is a much-needed relief. The extra savings will help in managing household expenses and planning for the future.”
The Union Budget 2025-26 marks a pivotal shift in India’s taxation landscape, with its focus on easing the financial burden of the middle class and fostering economic growth. As the new provisions come into effect, taxpayers and financial analysts alike will be closely watching the broader impact on the economy.
