Budget 2025: In a major move benefiting the middle class, the Narendra Modi government has announced a significant reduction in income tax rates. This long-awaited relief was revealed by Finance Minister Nirmala Sitharaman, who confirmed that individuals earning up to ₹12 lakh will now be exempt from income tax.
Key Highlights of the Tax Relief
- No Income Tax for Earnings Up to ₹12 Lakh: The new tax exemption applies to individuals with normal income, excluding special categories like capital gains.
- Higher Exemption for Salaried Class: With the ₹75,000 standard deduction, salaried employees earning up to ₹12.75 lakh will also enjoy complete tax exemption.
- Boost to Middle-Class Spending: This tax relief is expected to leave more money in the hands of taxpayers, increasing consumption and driving economic growth.
- Revenue Impact: The government estimates a revenue loss of ₹1 lakh crore in direct taxation and an additional ₹2,600 crore in indirect taxation due to this reform.
The announcement has been met with widespread appreciation, especially from the middle-class and salaried individuals, who have long been waiting for tax relief. The move is expected to stimulate spending, improve savings, and boost overall economic activity. Stay tuned for more updates on Budget 2025 and its impact on taxpayers!
