Mon Feb 03 02:22:22 UTC 2025: **India’s Budget 2025 Brings Tax Reliefs for Middle Class**

NEW DELHI – Finance Minister Nirmala Sitharaman presented Budget 2025, offering significant tax benefits for the middle class. The new tax regime increases the rebate limit to ₹12 lakh (₹12.75 lakh for salaried individuals), eliminating income tax for those earning up to ₹1 lakh per month. The basic exemption limit has also been raised from ₹3 lakh to ₹4 lakh, and tax slabs have been widened. The government estimates these measures will result in ₹1 lakh crore in forgone revenue.

Individuals earning ₹12 lakh will save ₹80,000, those earning ₹18 lakh will save ₹70,000, and those earning ₹25 lakh will save ₹1.1 lakh (excluding cess). The government will also introduce a simplified Income Tax bill to reduce disputes.

While mutual fund investors expressed disappointment over the continued withdrawal of indexation benefits for long-term debt investments, the budget did offer TDS relief. The TDS threshold for senior citizens’ fixed deposit interest income is raised from ₹50,000 to ₹1 lakh, and the annual TDS limit on rent increased from ₹2.40 lakh to ₹6 lakh. Withdrawals from old National Savings Scheme accounts will also be exempt.

The TCS threshold for overseas remittances under the LRS scheme is raised from ₹7 lakh to ₹10 lakh, and TCS on remittances for education purposes (via loans from financial institutions) is eliminated.

The increased disposable income is expected to boost savings and investments. The full details of the new tax regime are available on Moneycontrol.com.

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