Budget 2025: Nirmala Sitharaman Announces Zero Income Tax for Income Up to Rs.12.75 Lakh
Budget 2025: Nirmala Sitharaman Announces Zero Income Tax for Income Up to ₹12.75 Lakh
Budget 2025 Highlights: Major Tax Relief for Middle-Class, Focus on Infrastructure Growth
Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on February 1, announcing significant tax relief for salaried individuals. Under the new tax regime, no income tax will be payable on income up to ₹12.75 lakh, offering major relief to the middle class. This marks her eighth consecutive budget presentation in the Lok Sabha.
#UnionBudget2025 | Finance Minister Nirmala Sitharaman says, " I am now happy to announce that there will be no income tax up to an income of Rs 12 lakhs." pic.twitter.com/rDUEulG3b9
— ANI (@ANI) February 1, 2025
Key Takeaways from Budget 2025:
- Fiscal Deficit: Set at 4.8% for FY25, with an estimated 4.4% for FY26.
- Jan Vishwas Bill 2.0: Aimed at decriminalizing over 100 provisions and launching an investment-friendly index for states in 2025.
- Tariff Reforms: Removal of 7 tariff rates, leaving only 8 in effect.
- Infrastructure Boost: ₹1.5 lakh crore allocated as 50-year interest-free loans to states for capital expenditure.
- Healthcare Relief: 36 life-saving drugs fully exempted from basic customs duty.
Revised Income Tax Slabs (New Regime):
| Salary | Income Tax Rates |
|---|---|
| ₹0–4 lakh | Nil |
| ₹4–5 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
This budget emphasizes infrastructure growth, ease of doing business, and middle-class tax relief, reflecting the Modi 3.0 government’s focus on economic reforms.
