February 1, Saturday, 2025: Union Finance Minister Sitharaman presented the Union Budget 2025-26 today morning. In a move to give relief to taxpayers, Union Finance Minister Nirmala Sitharaman announced that those with annual income up to Rs 12 lakh will not have to pay tax.
In the new income tax regime, No income tax will be payable for annual income up to ₹12 lakh in the new tax regime. For salaried taxpayers, this limit is ₹12.75 lakh, including standard deduction. The revised tax structure is as follows:
- ₹0-4 lakh: 0%
- ₹4-8 lakh: 5%
- ₹8-12 lakh: 10%
- ₹12-16 lakh: 15%
- ₹16-20 lakh: 20%
- ₹20-24 lakh: 25%
- Above ₹24 lakh: 30%
Sitharaman began her Budget speech in the Parliamentary Budget SPeech at the Lok Sabha by underlining that it will be a testament to the middle class of the country. She said, “This budget continues efforts to accelerate growth and provide inclusive development”
The annual limit for TDS on rent. has been raised from Rs.2.40 lakh to Rs.6 lakh benefitting small taxpayers receiving smaller payments.
The fiscal deficit target for the financial year 2025-26 is pegged at 4.4 %.
In major reform, FM Sitharaman announced an increase in the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%
The government will provide identity cards and registration for gig workers, enhancing social security and streamlining benefits for the freelance and contractual workforce.
While delivering the budget speech, the Finance Minister urged Income Tax department officials to “trust first, scrutinise later” She mentioned that the government plans to introduce a new Income Tax bill in Parliament on Monday, next week.
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