Budget 2025: No Income Tax on Rs 12 Lakh - A Revolutionary Step for India's Economy

CS Rakesh Chandak | Last updated: 26 February 2025

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India's Union Budget 2025 introduces a significant change, removing income tax for individuals earning up to Rs 12 lakh annually. This move aims to provide relief to the middle class while strategically encouraging digital transactions and boosting Goods and Services Tax (GST) collections. By shifting the tax burden away from direct income tax, the government anticipates a rise in consumer spending and a more formalised economy, aligning with the vision of a $5 trillion economy.

The Union Budget 2025 has brought a significant reform-exempting individuals earning up to Rs 12 lakh per annum from paying income tax. This announcement by the Finance Minister is a major relief for the middle class and a strategic economic move to curb the parallel cash economy, boost GST collecti

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About the Author

CS Rakesh Chandak

Fellow Company Secretary

CS Rakesh Chandak is a Qualified Company Secretary with ranks in foundation executive programmes of company secretary-ship examinations. He is working in a chartered accountants firm in Kolkata.

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