Big Tax Relief: No Income Tax on Earnings Up to ₹12 Lakh, Announces FM Sitharaman

In a major relief for taxpayers, Union Finance Minister Nirmala Sitharaman announced that individuals earning up to ₹12 lakh annually will not have to pay income tax under the new tax regime. Including standard deductions, this exemption effectively extends to ₹12.75 lakh, marking a significant step towards reducing the tax burden on the middle class. The announcement, made during the presentation of the Union Budget 2025, was met with loud cheers and desk-thumping by BJP MPs, with Prime Minister Narendra Modi leading the celebration in Parliament.

Additionally, Sitharaman introduced revisions to the tax slabs, further sweetening the deal for taxpayers under the new regime. This move is expected to boost disposable incomes, encourage spending, and stimulate economic growth. Experts believe the bold tax cut will provide much-needed relief to salaried individuals and self-employed professionals, making the new tax regime more attractive. The announcement has already sparked widespread discussions, with many hailing it as a pro-middle-class measure ahead of the upcoming general elections.