All income groups got a little something from the Budget
Subscribe to enjoy similar stories. The Union Budget 2025 aimed to put more money in the hands of every income group—whether salaried professionals, gig workers, rental income earners, or senior citizens—by tweaking tax slabs, deductions, and exemptions. The highlight was that the aspirations and expectations of the middle-class, finally got an earnest ear.
In her Budget speech, Finance Minister Nirmala Sitharaman repeatedly underscored the role of the middle class in nation-building, mentioning the term "middle-class" at least ten times, highlighting their energy and contribution to the economy. The proposed amendments in the Finance Bill 2025, aim at substantially reducing the taxes of the middle class leaving more money in their hands, and boosting household consumption, savings, and investment. The Bill proposes that persons opting for the new personal tax regime in financial year 2025-26, and having income upto ₹12 lakh, will not be required to pay any income tax, after availing the increased rebate amount of upto ₹60000, under section (u/s) 87A of the Income Tax Act.
The new regime has been sweetened by increasing the basic exemption limit from existing 3 lakh to 4 lakh and reducing further, the tax slab rates. This will accelerate the switch to the new regime further, and infact may make the old regime practically redundant. For income levels upto ₹12 lakh, the new regime is a definite choice without any doubt.
Read more on livemint.com
