Sat Feb 01 23:32:48 IST 2025: ## Budget 2025: Massive Tax Relief for Middle Class, New Tax Law on the Horizon
**New Delhi** – Finance Minister Nirmala Sitharaman today unveiled India’s Union Budget 2025, delivering significant tax relief to the middle class. The budget, presented as part of the BJP government’s third term, aims to alleviate the burden of high prices and stagnant wages.
A key highlight is the elimination of income tax for individuals earning up to ₹12 lakh annually under the new tax regime. This measure provides savings of up to ₹80,000 per year. Those earning ₹24 lakh or more can expect tax savings of ₹1.10 lakh.
The government will also introduce a new Income Tax bill in Parliament next week, replacing the existing 1961 Act.
The budget allocates a total expenditure of ₹50,65,345 crore for 2025-26, a 7.4% increase over the current fiscal year.
Prime Minister Narendra Modi praised the budget as a “people’s budget,” designed to boost savings and investment, making citizens active participants in national development. He highlighted its potential to inject more money into the hands of the people and stimulate economic growth.
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