New Delhi [India], February 1 (ANI): One crore middle-income Indian taxpayers will be out of tax net according to announcements in the Union Budget 2025 presented by Finance Minister Nirmala Sitharaman on Saturday.
“One crore people will pay no tax,” the Finance Minister told reporters at a post-Budget press conference. She was answering a query about the number of people who will be out of the tax net with the new proposals.
“It’s a very responsive government. And as a result, the income tax simplification, which I announced in July, is already completed in its works, and we shall bring the bill next week. So the income tax simplification, about which in July budget I have gone in detail and the work is completed in six months, Within six months, we have brought the bill. It will be coming in the Parliament next week,” she said.
Sitharaman, during her Union Budget 2025 speech, announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class. Earlier, this limit was Rs 7 lakh.
This limit will be Rs 12.75 lakh rupees for salaried taxpayers counting Rs 75,000 of standard deduction. She also stated that the new income tax regime will be simpler, with a special focus on benefiting the middle class.
In 2014, the limit was Rs 2.2 lakh, in 2014 it became Rs 2.5 lakh, in 2019 it became Rs 5 lakh, and later Rs 7 lakh.
“Now it being raised to Rs 12 lakh,” said Finance Secretary Tuhin Kanta Pandey during the presser, reaffirming that middle-income taxpayers would benefit from it.
As a result of these tax relief proposals, the government will forego revenue of about Rs 1 lakh crore in direct taxes and Rs 2600 crore in indirect taxes.
The government expects that taxpayers saving money through lesser income tax will plough it back in the economy in form of either consumption, savings or investments.
In July 2024 Budget, the government had proposed a comprehensive review of the Income-tax Act, 1961. The purpose was to make the Act concise and lucid and reduce disputes and litigation. (ANI)
