Union Budget 2025: No income tax up to Rs 12 lakh; details of revised tax rates here

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings, and investments," the minister stressed
New tax regime
New tax regime(Pic: EdexLive Desk)
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While announcing the Union Budget 2025, Finance Minister Nirmala Sitharaman announced no income tax for up to an income of Rs 12 lakh. "I am now happy to announce that there will be no income tax payable up to an income of 12 lakh rupees," she said.

Presenting the eighth budget, the first full-time female Finance Minister Nirmala Sitharaman highlighted that middle-class taxpayers are left with more savings this way. "Average income of 1 lakh per month, other than the special rate income such as capital gains, under the new regime — this limit will be 12.75 lakh for salaried taxpayers, due to the standard deduction of 75,000. Slabs and rates are being changed across the board to benefit all taxpayers," she said.

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investments," the minister stressed.

According to the budget announcement made by the minister, in the new tax regime, the revised tax rate structure is:

0 to 4 lakh: Nill

4 to 8 lakh: 5%

8 to 12 lakh: 10%

12 to 16 lakh: 15%

16 to 20 lakh: 20%

20 to 24 lakh: 25%

Above 24 lakhs: 30%

"Democracy, demography, and demand are key support filters in our journey towards Viksit Bharat. The middle class provides strength to India's growth," Finance Minister Nirmala Sitharaman said.

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