Synopsis
Union Finance Minister Nirmala Sitharaman announced significant tax slab revisions in the Union Budget 2025-26, benefiting one crore taxpayers by increasing the exemption limit from Rs 7 lakh to Rs 12 lakh, resulting in no income tax liability for many.Key Takeaways
- One crore taxpayers to benefit from tax slab revisions.
- Tax exemption limit raised from Rs 7 lakh to Rs 12 lakh.
- No income tax for individuals earning up to Rs 12 lakh.
- Comparison with UPA era highlights significant changes.
- Government emphasizes commitment to public spending on infrastructure.
New Delhi, Feb 1 (NationPress) The Union Finance Minister Nirmala Sitharaman stated at her initial press briefing after the Budget announcement that the updates in the tax slabs outlined in the Union Budget 2025-26 will ensure that there is sufficient money left in taxpayers' hands. She highlighted that approximately one crore taxpayers will gain directly from the broadened rebates and exemptions under the New Tax regime.
During the media interaction, FM Sitharaman mentioned: "One crore additional individuals will benefit thanks to the elevated tax exemption limit from Rs 7 lakh to Rs 12 lakh. They will not be required to pay any income tax."
The newly proposed slabs in the Budget 2025-26 indicate that individuals earning up to Rs 12 lakh will not incur any income tax, representing a significant shift in the tax framework.
She reaffirmed the commitment of the Prime Minister Narendra Modi-led government towards the Viksit Bharat initiative, detailing the measures and efforts being made to advance the nation in that direction.
Comparing the current Budget with that of the UPA era in 2014, she asserted that the modifications in the tax slab rates have invalidated the argument of needing 'more money in people's pockets.'
By sharing insights on the tax slabs and benefits from the UPA period and the present day, she stated: "For someone earning around Rs 8 lakh in 2014, there is nearly Rs 1 lakh more in their pockets today because of these changes. The Rs 1 lakh income tax in 2014 has been eliminated in 2025. For those making Rs 12 lakh, Rs 2 lakh more will now be available to taxpayers."
Furthermore, she informed the press: "Everyone is gaining because the income tax rates have been lowered. In 2014, a taxpayer earning Rs 24 lakh/year paid approximately Rs 5.6 lakh in income tax, which is now reduced to only Rs 3 lakh, putting Rs 2.6 lakh more in their hands."
She drew a comparison between the existing tax rates and the suggested new ones for FY25-26, stating that individuals with an income of Rs 8 lakh will find Rs 30,000 more in their pockets due to their tax liability being reduced to zero.
Additionally, the Finance Minister addressed concerns regarding decreased capital expenditure investments.
She made it clear that there has been no cutback in public spending on capital infrastructure, and the government is fully committed to enhancing these investments.
