Game-Changing Relief: Modi Govt Offers Zero Tax on Income Up to Rs 12 Lakh, Empowering Middle Class Before Delhi Elections

In a strategic move aimed at providing relief to the middle class and garnering voter support ahead of the pivotal Delhi elections, the government unveiled significant changes in the Income Tax structure as part of the 2025-26 Union Budget. Finance Minister Nirmala Sitharaman announced an increase in the threshold for tax-free income, raising it from Rs 7 lakh to Rs 12 lakh annually. For salaried taxpayers, this limit has been further extended to Rs 12.75 lakh, accounting for the standard deduction of Rs 75,000.

The revised tax slabs now specify that no tax is payable on income up to Rs 4 lakh, while a 5% tax rate applies to income between Rs 4,00,001 and Rs 8,00,000. Income from Rs 8,00,001 to Rs 12,00,000 will attract a 10% rate. Higher income levels will see incremental tax rates, with 15% for earnings from Rs 12,00,001 to Rs 16,00,000, 20% for Rs 16,00,001 to Rs 20,00,000, 25% for Rs 20,00,001 to Rs 24,00,000, and 30% for income exceeding Rs 24,00,000.

Additionally, to better accommodate senior citizens, the tax deduction limit has been doubled from Rs 50,000 to Rs 1 lakh. The annual limit for TDS on rent payments has also increased from Rs 2.40 lakh to Rs 6 lakh.

These adjustments are anticipated to enhance financial security for taxpayers, stimulate consumer spending, and bolster economic growth. According to Minister Sitharaman, the new income tax regime will provide financial benefits ranging from at least Rs 30,000 to up to Rs 1,10,000. By altering the tax structure, the government aims to boost the middle class’s spending power, which is expected to contribute positively to national economic development.

Original Source: https://tripurachronicle.in/national-news/zero-tax-on-income-up-to-rs-12-lakh-modi-govt-woos-middle-class-ahead-of-delhi-election/
Category : National News
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Publish Date: 2025-02-01 15:32:00