Sun Feb 02 08:26:46 UTC 2025: ## India’s 2025 Budget Offers Significant Income Tax Relief

**New Delhi** – Finance Minister Nirmala Sitharaman announced sweeping changes to India’s income tax system in the 2025 budget, significantly lowering tax burdens for a large segment of the population. The most dramatic change is the increase of the income tax rebate limit from ₹7 lakh to ₹12 lakh. This means individuals earning up to ₹12 lakh will pay zero income tax.

However, the zero-tax benefit is only applicable up to the ₹12 lakh threshold. Those earning above this amount will be taxed according to the new tax regime’s slab rates. For example, an individual earning ₹12.1 lakh will pay ₹61,500 in taxes, while someone earning ₹15 lakh will pay ₹105,000.

The budget also offers substantial tax relief for higher earners. The tax rate for income between ₹15 lakh and ₹24 lakh has been significantly reduced. Previously taxed at 30%, this income bracket will now face rates of 15% (₹12-16 lakh), 20% (₹16-20 lakh), and 25% (₹20-24 lakh). Only income above ₹24 lakh will be taxed at the 30% rate. The government estimates that those earning over ₹24 lakh could save up to ₹1.1 lakh under the revised system.

The budget, the second presented by the BJP government, also addresses key areas like healthcare, infrastructure, agriculture, digitalization, and privatization. While the government hailed the changes as positive, critics have questioned the timing of these measures.

Read More