Union Budget 2025: No Income Tax for Salaries Up to ₹12 Lakh, New Tax Slabs Announced

Finance Minister Nirmala Sitharaman, in the Union Budget 2025, announced a full tax rebate for incomes up to ₹12 lakh (₹12.75 lakh for salaried taxpayers with a ₹75,000 standard deduction) under the new tax regime.

New tax slabs range from 5% for ₹4-8 lakh to 30% for income above ₹24 lakh. The move aims to boost household consumption, savings, and investment.

Marginal relief ensures minimal tax for those earning slightly above ₹12 lakh. The government expects a major shift to the new tax regime, benefiting 75% of taxpayers.

The budget prioritises middle-class tax relief and economic growth.