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
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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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