Income Tax Slabs 2025 Live: No Income Tax Till ₹12 Lakh Under New Tax Regime, Announces Sitharaman
New Delhi- Income Tax Slabs for AY 2025-26: TDS threshold for senior citizens increased from ₹50,000 to ₹1 lakh, says Finance Minister Nirmala Sitharaman.
Big Relief for the Middle Class in Budget 2025-26
Finance Minister Nirmala Sitharaman has announced a significant tax reform in the Union Budget 2025-26, providing major relief to the middle class. In her Part B announcements, she declared that under the New Tax Regime, there will be no income tax on earnings up to ₹12 lakh per annum.
Income Tax Rebate Increased – A Big Boost for Salaried Individuals
To further benefit taxpayers, the income tax rebate limit has been raised from ₹7 lakh to ₹12 lakh. This relief applies to resident Indian taxpayers, ensuring that individuals earning up to ₹12.75 lakh will not have to pay any income tax. Additionally, tax slabs under the New Tax Regime have been revised, allowing significant savings for the middle class.
Historical Changes in Income Tax Exemption Limits
- 2005: ₹1 lakh
- 2012: ₹2 lakh
- 2014: ₹2.5 lakh
- 2019: ₹5 lakh
- 2023: ₹7 lakh
- 2025: ₹12 lakh
TDS Threshold Increased for Senior Citizens
The Finance Minister also announced an increase in the TDS (Tax Deducted at Source) threshold for senior citizens, raising it from ₹50,000 to ₹1 lakh, providing them with greater financial ease.
The Budget 2025-26 has brought substantial tax relief for the middle class, ensuring higher savings and financial stability for millions of Indian taxpayers.
