Synopsis
Finance Minister Nirmala Sitharaman announced in New Delhi that Budget 2025-26 will allow an additional 1 crore individuals to be exempt from income tax due to an increased rebate limit of Rs 12 lakh. This significant measure aims to enhance disposable income for citizens.Key Takeaways
- 1 crore more people exempt from income tax.
- Rebate raised to Rs 12 lakh.
- No public spending cuts on capital expenditure.
- Focus on rural and urban development.
- Prioritization of education and healthcare.
New Delhi, Feb 1 (NationPress) An additional 1 crore individuals will no longer be subject to income tax following the increase in the rebate to Rs 12 lakh as revealed in the Budget for 2025-26, declared Finance Minister Nirmala Sitharaman on Saturday.
During a press conference post-budget, she emphasized that this initiative would "put more money in the hands of people".
In a significant relief for taxpayers, the Finance Minister unveiled a rise in the tax rebate within the Union Budget. Under the new framework, individuals with a net taxable income of up to Rs 12 lakh will now be exempt from income tax, a major increase from the earlier limit of Rs 7 lakh.
Moreover, Finance Minister Sitharaman announced that the new Income Tax Bill would be presented in Parliament next week and would be forwarded to a Standing Committee for review.
She also reiterated that "there is no cut in public spending on capital expenditure in the Union Budget for 2025-26. We maintain our focus on the multiplier effect that government capital expenditure has demonstrated in sustaining us. We will continue this approach, ensuring our fiscal prudence remains intact".
The Finance Minister highlighted that the Union Budget outlined objectives for ‘Viksit Bharat’, emphasizing both rural prosperity and urban development. She added that the Budget remains committed to reforms.
Furthermore, she indicated that two amendments will be introduced to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, aimed at bolstering the nation’s energy security.
She noted that the Budget has prioritized education and healthcare, with an increase in the number of available seats in medical colleges across the country.
