Sat Feb 01 13:09:46 IST 2025: **India Unveils Sweeping Tax Cuts in Union Budget 2025**
NEW DELHI – Finance Minister Nirmala Sitharaman today announced a significantly revamped tax structure in the Union Budget 2025, offering substantial tax relief to a large segment of the Indian population. The new tax regime eliminates income tax for individuals earning up to ₹12 lakh annually, and up to ₹12.75 lakh for salaried individuals due to a ₹75,000 standard deduction.
The revised tax slabs are as follows: 0% tax on income up to ₹4 lakh; 5% between ₹4-8 lakh; 10% between ₹8-12 lakh; 15% between ₹12-16 lakh; 20% between ₹16-20 lakh; 25% between ₹20-24 lakh; and 30% on income above ₹24 lakh.
The government highlighted the substantial tax benefits this will bring. An individual earning ₹12 lakh will see a 100% reduction in their tax liability (a savings of ₹80,000), while those earning ₹18 lakh will save ₹70,000 (30% of their previous tax burden), and those earning ₹25 lakh will save ₹1,10,000 (25% reduction).
Minister Sitharaman emphasized the government’s commitment to supporting the middle class, citing it as a crucial pillar in India’s growth trajectory towards becoming a “Viksit Bharat” (developed India). The tax cuts, she stated, are a recognition of the middle class’s vital contribution to nation-building.
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