Big Relief For Middle-Class In Union Budget 2025: No Income Tax On Income Up To Rs 12 Lakh

In a big announcement for middle-class during her budget speech, Union Finance Minister Nirmala Sitharaman on Saturday (1 February) announced that no income tax will be levied on income up to Rs 12 lakh.

There will be no income tax payable up to Rs 12 lakh - up to Rs 12.75 lakh including standard deductions, under the new tax regime, the FM announced.

Sitharaman also announced revisions to the tax slabs (applicable to the new regime only).

Under the revised slab, tax on income between Rs 8 and Rs 12 lakh will be 10 per cent.

Between Rs 12 lakh and Rs 16 lakh it will be 15 per cent.

Between Rs 16 lakh and Rs 20 lakh it will be 20 per cent.

Between Rs 20 lakh and Rs 25 lakh it will be 25 per cent.

Above Rs 25 lakh and Rs 25 lakh it will be 30 per cent.

All of this, Sitharaman said, will "substantially reduce the tax burden on the middle class".