Mon Feb 03 05:40:00 UTC 2025: **Income Tax Relief Announced by Indian Finance Minister**
NEW DELHI – Finance Minister Nirmala Sitharaman announced significant income tax relief measures, raising the tax exemption limit to ₹12 lakh and lowering tax slab rates. The changes aim to reduce the tax burden on individuals earning ₹1 lakh per month or more, injecting more money into the economy.
Sitharaman explained that the government’s objective is to ensure individuals earning ₹1 lakh monthly don’t pay income tax. This is being achieved through a two-pronged approach: reducing tax slab rates for a more progressive structure and expanding tax brackets to provide relief across all income levels. An additional rebate was also introduced to provide further benefits to certain taxpayers.
The minister highlighted the contrast with the previous tax system in 2014, emphasizing that the current reforms put significantly more money back into the hands of taxpayers. She cited examples showing that individuals earning ₹8 lakh now pay zero tax (compared to ₹1 lakh in 2014) and those earning ₹12 lakh also pay no tax (down from ₹2 lakh in 2014). Even higher earners, such as those making ₹24 lakh annually, see substantial tax reductions, with their tax burden falling from ₹5.6 lakh to ₹3 lakh.
The government expects this increased disposable income will stimulate the economy through increased consumption, savings, and investment.
First Piper 