Budget 2025: Income up to Rs 12 lakh tax-free under new tax regime

New Delhi: Finance Minister Nirmala Sitharaman has announced that annual income up to Rs 12 lakh will be completely tax-free under the new tax regime, providing significant relief to the middle class.

With the inclusion of a Rs 75,000 standard deduction, individuals earning up to Rs 12.75 lakh annually will not have to pay any income tax.

Sitharaman said that the tax exemption would boost disposable income, leading to increased consumption, investment, and savings.

Under this revised framework, individuals earning Rs 12 lakh annually will save Rs 80,000, while those with an annual income of Rs 18 lakh will save Rs 70,000.