PIB
PRESS INFORMATION BUREAU
MINISTRY
OF FINANCE
NO
INCOME TAX ON ANNUAL INCOME UPTO Rs. 12 LAKH UNDER NEW TAX REGIME
LIMIT
TO BE Rs. 12.75 LAKH FOR SALARIED TAX PAYERS, WITH STANDARD DEDUCTION OF RS.
75,000
UNION BUDGET 2025-26 BRINGS ACROSS-THE-BOARD CHANGE IN INCOME TAX SLABS AND
RATES TO BENEFIT ALL TAX-PAYERS
TAX SLAB RATE REDUCTION AND REBATES TO RESULT IN SUBSTANTIAL TAX RELIEF TO
MIDDLE CLASS, THEREBY BOOSTING HOUSEHOLD CONSUMPTION EXPENDITURE AND INVESTMENT
Posted On: 01 FEB 2025 1:28PM by
PIB Delhi
Reaffirming Government’s commitment to the philosophy of
“trust first, scrutinize later”, the Union Budget 2025-26 has reposed faith in
the Middle class and continued the trend of giving relief in tax burden to the
common tax–payer. Presenting the Budget in the Parliament today, Union Minister
for Finance and Corporate Affairs, Smt. Nirmala Sitharaman proposed an
across-the-board change in tax slabs and rates to benefit all tax-payers.
Giving the good news to tax payers, the Finance Minister
stated, “There will be no income tax payable upto income of Rs. 12 lakh (i.e.
average income of Rs.1 lakh per month other than special rate income such as
capital gains) under the new regime. This limit will be Rs.12.75 lakh for
salaried tax payers, due to standard deduction of Rs. 75,000.” 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, she added.
Smt. Sitharaman stated, “The new structure will
substantially reduce the taxes of the middle class and leave more money in
their hands, boosting household consumption, savings and investment”. In the
new tax regime, the finance minister proposed to revise tax rate structure as
follows:
|
0-4 lakh rupees |
Nil |
|
4-8 lakh rupees |
5 per cent |
|
8-12 lakh rupees |
10 per cent |
|
12-16 lakh rupees |
15 per cent |
|
16-20 lakh rupees |
20 per cent |
|
20- 24 lakh rupees |
25 per cent |
|
Above 24 lakh rupees |
30 per cent |
The total
tax benefit of slab rate changes and rebate at different income levels can be
illustrated in the table below:
While underlining Taxation Reforms as one of key reforms to
realize the vision of Viksit Bharat, Smt. Sitharaman stated that the new
income-tax bill will carry forward the spirit of ‘Nyaya’. The new regime will
be simple to understand for taxpayers and tax administration, leading to tax
certainty and reduced litigation, she informed.
Quoting Verse 542 from The Thirukkural, the finance
minister stated, “Just as living beings live expecting rains, Citizens live
expecting good governance.” Reforms are a means to achieve good governance for
the people and economy. Providing good governance primarily involves being
responsive. The tax proposals detail just how the Government under the guidance
of Prime Minister Shri Narendra Modi has taken steps to understand and address
the needs voiced by our citizens, Smt. Sitharaman added/NB/VM
(Release ID: 2098406)
No comments:
Post a Comment