- Union Budget 2025: Tax Relief for Middle Class and Simplified Regime Announced by FM Nirmala Sitharaman
- Income Tax Exemption Up to Rs 12 Lakh: Key Highlights from Union Budget 2025
- FM Nirmala Sitharaman Unveils Tax Relief for Salaried Individuals and Duty Exemption on Medicines in Budget 2025
On February 1, Union Finance Minister Nirmala Sitharaman unveiled the Union Budget for 2025, bringing in notable tax relief, particularly for the middle class. A key highlight of the budget was the announcement that individuals earning up to Rs 12 lakh annually will be exempt from income tax, providing significant financial relief. For salaried individuals, the tax-free limit is raised to Rs 12.75 lakh, taking into account the standard deduction of Rs 75,000.
Sitharaman emphasized that the new tax regime will be streamlined, with a special focus on benefiting the middle class. However, the exemptions are subject to specific conditions: taxpayers must avail themselves of various deductions under the Income Tax Act, such as the Rs 1.5 lakh exemption under section 80CCC and an additional Rs 1.5 lakh deduction for home loan interest payments.
This initiative is expected to ease the financial burden on middle-income groups, making the tax system more transparent and easier to navigate.