Sat Feb 01 07:56:36 UTC 2025: ## Union Budget 2025: India Unveils Sweeping Income Tax Reforms

**New Delhi** – Finance Minister Nirmala Sitharaman today announced a major overhaul of India’s income tax system in the Union Budget 2025. The new tax regime offers significant tax relief for a large segment of the population, particularly the middle class.

A key feature is the elimination of income tax for individuals earning up to ₹12 lakh annually. Salaried individuals benefit further, with no tax payable on income up to ₹12.75 lakh due to a standard deduction of ₹75,000.

The new tax slabs are as follows:

* **₹0-₹4 lakh:** 0%
* **₹4-₹8 lakh:** 5%
* **₹8-₹12 lakh:** 10%
* **₹12-₹16 lakh:** 15%
* **₹16-₹20 lakh:** 20%
* **₹20-₹24 lakh:** 25%
* **Above ₹24 lakh:** 30%

The government cited examples to illustrate the tax benefits: An individual earning ₹12 lakh will receive a full tax rebate (₹80,000), while those earning ₹18 lakh and ₹25 lakh will see reductions of ₹70,000 (30% of payable tax) and ₹110,000 (25% of payable tax) respectively.

Minister Sitharaman emphasized the government’s commitment to supporting the middle class, stating that the tax reforms reflect its recognition of the middle class’s vital role in nation-building. The changes are intended to boost economic growth and further India’s progress towards becoming a “Viksit Bharat” (developed India).

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