by: NavJeevan

Budget bonanza for middle-class: No income tax till Rs 12 lakh under New Tax Regime, says FM

NE BUSINESS BUREAU
NEW DELHI, FEB 1

In a major boost for the middle-class, Finance Minister Nirmala Sitharaman announced a massive taxation reform in Union Budget FY26 today. In the Part B announcements, Sitharaman said that there will be no income tax up to Rs 12 lakh per annum under New Tax Regime.

This rebate applies to resident Indian taxpayers, ensuring that salaried individuals earning up to Rs 12.75 lakh will now be exempt from paying income tax. Additionally, the minister announced a revision of tax slabs under the new regime, offering a significant savings boost to the middle class.

  • The Union Minister also announces changes in the tax slabs
  • TDS threshold from Rs 50,000 to Rs 1 lakh for senior citizens, says Sitharaman

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.

The tax slabs and rates are as follows:

  • 0-4 lakh rupees: Nil
  • 4-8 lakh rupees: 5%
  • 8-12 lakh rupees: 10%
  • 12-16 lakh rupees: 15%
  • 16-20 lakh rupees: 20%
  • 20-24 lakh rupees: 25%
  • Above 24 lakh rupees: 30%