Sat Feb 01 06:59:00 UTC 2025: ## Government Announces Sweeping Tax Cuts for Middle Class
**New Delhi** – In a move hailed as a significant boost to the middle class, the government today announced major revisions to the income tax structure under the new tax regime. The changes dramatically reduce the tax burden for a large segment of the population.
The revised tax slabs are as follows:
* **Up to Rs 4 Lakh:** Nil
* **Rs 4-8 Lakh:** 5%
* **Rs 8-12 Lakh:** 10%
* **Rs 12-16 Lakh:** 15%
* **Rs 16-20 Lakh:** 20%
Crucially, individuals earning up to Rs 12 lakh annually will now pay zero income tax under the new regime. Factoring in the standard deduction of Rs 75,000, this effectively raises the tax-free threshold to Rs 12.75 lakh.
The government stated that this restructuring will significantly lower taxes for the middle class, leaving more disposable income for consumption, savings, and investments. This is expected to provide a substantial boost to the national economy.
First Piper 