Budget 2025: Finance Minister Nirmala Sitharaman made important adjustments to income tax bands in Budget 2025, a significant step to lessen the tax burden. The nil tax slab is now worth ₹12 lakh instead of ₹7 lakh.
The income tax exemption has been extended to taxpayers making up to ₹12 lakh. The taxable income threshold rises to ₹12.75 lakh for salaried individuals with a standard deduction of ₹75,000. This allows more taxpayers to keep their entire income, which significantly differs from the previous ₹7 lakh cap.
With the current inflation, zero tax up to ₹12 lakh is expected to be transformative and provide some relief to the middle class,” stated Kumarmanglam Vijay, Partner, JSA Advocates & Solicitors concerning Income Tax. If adequately managed, leaving more money in the middle class should encourage personal investments and bode well for the economy.
Senior citizens will receive additional tax benefits in addition to the modifications to the income tax slab. The interest income deduction cap was raised from ₹50,000 to ₹1 lakh. The government anticipates that the new structure will significantly lower middle-class taxes, giving them more money to invest, save, and spend in their homes.
Also Read:
Crafting Bespoke Living Experience In Exquisite Locations With Glover Investments: Steven Glover
Fostering Business Growth And Helping Break Market Stagnation With AXIOM EXPERTS: Georges Nasr
