Quick Summary
The Central Board of Direct Taxes (CBDT) has highlighted key progress made in delivering income-tax relief to the middle class under the new tax regime , as part of the Union Budget promises for FY 2025-26. As per the official announcement, no income tax is payable on income up to Rs 12 lakh under the new tax regime, excluding special rate incomes such as capital gains. For salaried taxpayers, theeffective tax-free income limit increases to Rs 12.75 lakh , after factoring in the standard deduc
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FAQ :
Under the new tax regime, no income tax is payable on income up to Rs 12 lakh, excluding special rate incomes. For salaried taxpayers, the effective tax-free income limit increases to Rs 12.75 lakh after factoring in the standard deduction.
The revised slabs are: Nil for income up to Rs 4 lakh; 5% for Rs 4-8 lakh; 10% for Rs 8-12 lakh; 15% for Rs 12-16 lakh; 20% for Rs 16-20 lakh; 25% for Rs 20-24 lakh; and 30% for income above Rs 24 lakh.
Yes, marginal relief has been provided to taxpayers whose income slightly exceeds the Rs 12 lakh threshold, ensuring a small income increase doesn't result in a disproportionately higher tax burden.
The changes aim to simplify the tax structure, improve compliance, and provide tangible relief to the middle class.
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