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Finance Minister Nirmala Sitharaman has announced a significant change in the income tax system. Under the new income tax regime, individuals earning up to 12 lakh per year will not have to pay any income tax. This is a major relief for middle-class taxpayers in India.
- No Tax for Earnings Up to 12 Lakh: People earning up to 12 lakh annually will be exempt from paying income tax under the new system.
- Simplified Tax System: The new income tax regime aims to make the tax process simpler and more transparent, with fewer exemptions and deductions.
- Tax Relief for Middle-Class: This change will benefit a large section of the population, especially middle-class families who have a combined household income close to this threshold.
- Encouraging Economic Growth: The government hopes this move will increase disposable income for individuals, helping them spend more and contributing to overall economic growth.
This reform is part of the government’s efforts to improve the tax system and provide relief to taxpayers. It also aims to boost economic activity by increasing the spending power of citizens.
Also Read: Key Takeaways from Union Budget 2025
