Budget 2025: No income tax payable up to Rs 12 lakh in new regime, details inside

Union Finance Minister Nirmala Sitharaman, during the Budget 2025 session, announced that taxpayers with salaries up to Rs 12 lakh would not be required to pay tax in the new tax regime. 

Announcing changes in the tax slabs, FM Sitharaman stated that the new tax regime offers zero income tax for earnings up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers with standard deduction of Rs 75,000).

The government has introduced new tax slabs that aim to substantially reduce taxes for the middle class and are designed to leave more money in their hands, boosting household consumption, savings, and investment.

In her speech, she said, "...I propose to revise tax rate structures as follows: 0 to Rs 4 Lakhs - nil, Rs 4 Lakhs to Rs 8 Lakhs - 5%, Rs 8 Lakhs to Rs 12 Lakhs - 10%, Rs  12 Lakhs to Rs 16 Lakhs - 15%, Rs 16 Lakhs to Rs 20 Lakhs - 20%, Rs 20 Lakhs to Rs 24 Lakhs - 25% and above Rs 24 Lakhs - 30%. To taxpayers up to Rs 12 Lakhs of normal income other than special rate income  such as capital gains, tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them..."