Dainik Nation News Portal
DAINIK NATION BUREAU/DEHRADUN
Union Finance Minister Nirmala Sitharaman, in her budget speech on Saturday, announced a significant overhaul of income tax slabs, raising the nil tax slab to ₹12 lakh. This move aims to ease the financial burden on the middle class. Under the revised structure, individuals earning up to ₹12 lakh annually will be fully exempt from paying income tax, except for income derived from capital gains. Furthermore, salaried individuals can avail an extended exemption of up to ₹12.75 lakh, factoring in the standard deduction.
The restructuring of tax slabs marks a historic shift in the government’s commitment to empowering the middle class. Over the years, the threshold for tax-free income has witnessed a steady rise. In 2005, the limit was ₹1 lakh, which doubled to ₹2 lakh by 2012. In 2014, it increased to ₹2.5 lakh, further jumping to ₹5 lakh in 2019, and ₹7 lakh in 2023. Now, with the exemption raised to ₹12 lakh in 2025, taxpayers across the country are expected to save significantly, bolstering disposable income and encouraging consumption.
This tax reform is part of the government’s broader agenda to promote economic growth by enhancing the purchasing power of the middle class while simplifying the taxation system. Experts believe this move will directly benefit millions of households, reducing financial stress and increasing savings.
Speaking about the reforms, officials emphasized the government’s dedication to making taxation more equitable and ensuring that economic progress directly impacts the common citizen. These changes are expected to stimulate growth by leaving more money in the hands of consumers, which in turn could boost demand across key sectors.
The restructuring of tax slabs is being widely celebrated as a progressive step towards making India’s taxation system more inclusive and supportive of its middle-class citizens.
