Budget 2025: No Income Tax Up to ₹12 Lakh, Big Relief for Middle Class!

New Delhi (Uttam Hindu News): Finance Minister Nirmala Sitharaman made a big announcement in the 2025 budget, saying that now there will be no tax on income up to Rs 12 lakh annually. This change has been made under the new tax system, before which tax exemption was being given on income of Rs 7 lakh.

Sitharaman said that now 30 percent tax will be levied on income of Rs 24 lakh, while 20 percent tax will be levied on income of Rs 15-20 lakh and 10 percent tax will be levied on income of Rs 8-12 lakh. At the same time, the standard deduction has been retained at Rs 75,000.

This announcement has proved to be a big relief for the middle class, because now if a person's annual income is up to Rs 12 lakh, he will not have to pay any tax. However, if the income is even one rupee more than Rs 12 lakh, then tax will be applicable on it.