Finance Minister Nirmala Sitharaman has provided significant relief to income tax payers.
While presenting the budget, she announced that individuals earning up to Rs 1 lakh per month will not have to pay any tax.
Under the new tax slab, income up to Rs 12.75 lakh will be tax-free. Additionally, major announcements have been made regarding senior citizens and IT returns.
New Income Tax Slab Structure: Budget 2025
- Up to ₹4 lakh – No tax (0%)
- ₹4 lakh to ₹8 lakh – 5% tax
- ₹8 lakh to ₹12 lakh – 10% tax
- ₹12 lakh to ₹16 lakh – 15% tax
- ₹16 lakh to ₹20 lakh – 20% tax
- ₹20 lakh to ₹24 lakh – 25% tax
- Above ₹24 lakh – 30% tax
New Income Tax Bill to Be Introduced
The government plans to introduce a new income tax bill next week to simplify and make the tax system more transparent.
Additionally, while presenting the budget, the Finance Minister announced an increase in the FDI limit for the insurance sector.
The government has also decided to eliminate 7 tariff rates, leaving only 8 in place. A proposal has been made to remove the social welfare surcharge as well.
Big Announcement for Cancer Patients
Nirmala Sitharaman made a major announcement for cancer patients in the budget.
She revealed that the duty tax on 36 life-saving medicines will be completely removed. Additionally, cancer daycare centers will be set up in all government hospitals.
The cost of cancer treatment medicines will be reduced, and the custom duty on 6 life-saving medicines will be lowered to 5%.
Relief for the Middle Class
The primary goal of this new structure is to offer relief to the middle class. In recent years, there were no major changes to the income tax slabs, which left taxpayers disappointed.
However, the government has addressed this issue, providing greater financial freedom for salaried and middle-income groups.
