Zero income tax for 1 crore more Indians after Sitharaman's big Budget relief

About 1 crore more Indian in the salaried class stand to benefit after Saturday's Budget where Finance Minister Nirmala Sitharaman announced a rejig in income tax slabs under the new income tax regime.

" 1 crore more people will pay no tax post the Budget announcement," the Financa Minister said in her post-Budget press conference.

In a significant relief for taxpayers, the Finance Minister announced a hike in the tax rebate under Section 87A in the Union Budget 2025. As per the revised structure, resident individuals with a net taxable income of up to Rs 12 lakh will now pay zero income tax. This is a notable increase from the previous threshold of Rs 7 lakh under the new tax regime.


Salaried individuals who avail of the standard deduction benefit of Rs 75,000 will also pay zero tax if their gross taxable income does not exceed Rs 12.75 lakh. However, if the net taxable income exceeds Rs 12 lakh, tax liability will be determined based on the chosen tax regime, either the new or the old.

Speaking during the Budget presentation, the Finance Minister stated, "There will be no income tax payable for incomes up to 12 lakh rupees. This is aimed at providing significant relief to the middle-class taxpayers."

The new income tax slabs announced are

Income tax slabs (In Rs)	Income tax rate (%)
Up to 4,00,000	0
4,00,001-8,00,000	5%
8,00,001-12,00,000	10%
12,00,001-16,00,000	15%
16,00,001-20,00,000	20%
20,00,001-24,00,000	24%
Above 24,00,001	30%