-By ArdorComm News Network
February 3, 2025
In a landmark announcement, Finance Minister Nirmala Sitharaman declared in her Budget 2025 speech that individuals earning up to ₹12 lakh annually will pay no income tax under the new tax regime. The move has been welcomed as a major relief for India’s middle class.
The Budget also introduced key financial reforms, including raising the Foreign Direct Investment (FDI) limit in the insurance sector and modifying cess and surcharge structures. Additionally, the government plans to simplify the Tax Deduction at Source (TDS) regime to ease compliance burdens.
Sitharaman announced that a new, streamlined Income Tax Bill will be introduced next week, designed to be more concise and user-friendly. Other tax reforms include raising the Tax Collected at Source (TCS) limit on remittances under the RBI’s Liberalised Remittance Scheme from ₹7 lakh to ₹10 lakh.
Further, in a push towards domestic manufacturing, the Budget provides tax exemptions on 35 goods used in EV battery production and 28 goods for mobile phone battery manufacturing.
New Income Tax Slabs (New Regime)
- ₹4 – 8 lakh: 5%
- ₹8 – 12 lakh: 10%
- ₹12 – 16 lakh: 15%
- ₹16 – 20 lakh: 20%
- ₹20 – 24 lakh: 25%
- Above ₹24 lakh: 30%
The Budget 2025-26 focuses on tax reforms, investment liberalization, and industry-friendly policies, signaling the government’s intent to support economic growth and ease financial burdens on taxpayers.
Source: Financial Express