Nirmala Sitharaman
Union Budget: Nirmala Sitharaman shares reason behind increasing tax exemption to Rs. 12 lakh
Union Finance Minister Nirmala Sitharaman has explained the reason behind increasing tax exemption to Rs. 12 lakh and said her government wanted to recognise the honest taxpayer and extend support to the middle class.
"Our focus is to increase consumption. The government always recognised honest taxpayers. Our aim was to provide support to the middle class. Those earning Rs 1 lakh need tax relief," Sitharanman told NDTV.
Also Read: Budget 2025: Tax exemption raised to Rs 12 lakh, check what it means for you
Giving relief to Indian taxpayers and providing a boost to consumption, Union Finance Minister Nirmala Sitharaman on Saturday announced in her budget speech that people with salaries up to 12 lakhs will not be required to pay tax in the new tax regime.
Changes in the tax slabs were also announced.
"New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment," Nirmala Sitharaman announced in her budget speech.
As per the official announcement, people, under the new tax regime, will not need to pay tax up to Rs. 12 lakh (Rs.12.75 lakh for salaried taxpayers with standard deduction of Rs. 75,000).
This was the first full budget since PM Narendra Modi-led government returned to power for the third term but with a diminished majority.
The new tax slab is given below:
0-4 lakh rupees: Nil
4-8 lakh rupees: 5%
8-12 lakh rupees: 10%
12-16 lakh rupees: 15%
16-20 lakh rupees: 20%
20-24 lakh rupees: 25%
Above 24 lakh rupees: 30%
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