No Income Tax On Income Up To Rs 12 Lakh: Finance Minister Sitharaman's Announcement For Middle Class

This is Sitharaman's eighth consecutive Budget speech.

This is Sitharaman's eighth consecutive Budget speech.

Source : PTI

Union Budget 2025: Finance Minister Nirmala Sitharaman announced there will be no tax on income up to Rs 12 lakh under the new tax regime. "Slabs and rates being changed across the board to benefit all tax-payers," the Finance Minister said.

"To taxpayers up to Rs 12 Lakhs of normal income other than special rate income such as capital gains, tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them," Sitharaman announced.

#WATCH | "No Income Tax payable up to an income of Rs 12 Lakh. Slabs and rates being changed across the board to benefit all tax-payers," announces FM Nirmala Sitharaman.

She further says, "...I propose to revise tax rate structures as follows: 0 to Rs 4 Lakhs - nil, Rs 4 Lakhs… pic.twitter.com/fs29THlzxO

— ANI (@ANI) February 1, 2025

The tax brackets under the new regime will look like this:

Rs 0-4 lakh -- Nil
Rs 4-8 lakh -- 5%
Rs 8-12 lakh -- 10%
12-16 lakh - 15%
Rs 16-20 lakh -- 20%
Rs 20-24 lakh -- 25%
Above Rs 24 lakh -- 30%

The government has also extended the time limit for filing updated returns for any assessment year from the current limit of 2 years to 4 years.