One crore taxpayers to benefit from updated tax slabs, says FM Sitharaman
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Synopsis
In her first post-Budget press conference, FM Nirmala Sitharaman announced that approximately one crore taxpayers would benefit from the revised tax slabs in the Union Budget 2025-26, which effectively raise the tax exemption limit from Rs 7 lakh to Rs 12 lakh, ensuring no income tax for this group.
Key Takeaways
- About 1 crore taxpayers will benefit.
- Tax exemption limit raised to Rs 12 lakh.
- No tax for those earning up to Rs 12 lakh.
- Comparative analysis with UPA era budgets.
- Government committed to enhancing capital infrastructure.
New Delhi, Feb 1 (NationPress) Union Finance Minister Nirmala Sitharaman, during her first press conference after the Budget announcement, stated that the changes in tax slabs mentioned in the Union Budget 2025-26 will ensure more disposable income for taxpayers. She noted that approximately 1 crore taxpayers will gain directly from the newly introduced rebates and exemptions under the New Tax regime.
FM Sitharaman explained to reporters, "One crore additional individuals will benefit from the raised tax exemption limit from Rs 7 lakh to Rs 12 lakh. They will incur no income tax obligations."
According to the newly proposed slabs in Budget 2025-26, individuals earning up to Rs 12 lakh will have no income tax liabilities, representing a significant shift in the tax framework.
She also reaffirmed the government, led by Prime Minister Narendra Modi, is devoted to the Viksit Bharat vision and elaborated on the initiatives being launched to advance the nation towards this objective.
Furthermore, she compared the current Budget to the UPA era in 2014, asserting that the modifications in the tax slab rates have dismantled the argument regarding the need for increased disposable income among citizens.
While discussing the tax slabs and resulting benefits from both the UPA era and the present, she stated, "For individuals earning nearly Rs 8 lakh in 2014, they will now see nearly Rs 1 lakh more in their pockets due to these revisions. The Rs 1 lakh income tax from 2014 has been reduced to zero in 2025. For those earning Rs 12 lakh, taxpayers will have an additional Rs 2 lakh in their hands."
She further informed the media that, "Universally, everyone is reaping benefits as the income tax rates have been lowered. In 2014, individuals with an annual income of Rs 24 lakh faced an income tax of about Rs 5.6 lakh, which has now decreased to only Rs 3 lakh, resulting in Rs 2.6 lakh more available to taxpayers."
By comparing the existing tax rates with the proposed new rates for FY25-26, she indicated that those earning Rs 8 lakh will see Rs 30,000 more in their hands, thanks to the elimination of their tax liabilities.
She also aimed to counter any concerns regarding diminished capital expenditure investments.
The Finance Minister firmly stated that there has been no decline in public spending on capital infrastructure and assured that the government is fully committed to enhancing this area.
