In a landmark announcement during the Union Budget 2025, Finance Minister Nirmala Sitharaman revealed that individuals with an annual income of up to 12.75 lakh rupees will now be exempt from paying income tax. This significant change aims to provide substantial relief to the middle class and boost disposable income, thereby stimulating consumption and economic growth.
The new tax exemption limit is part of a broader strategy to simplify the tax regime and make it more taxpayer-friendly. By raising the exemption threshold, the government seeks to reduce the tax burden on individuals and encourage savings and investments. This move is expected to benefit millions of taxpayers across the country, providing them with greater financial flexibility.
Additionally, the budget includes other reforms aimed at enhancing the overall tax structure. These measures are designed to promote transparency, reduce litigation, and ensure that the tax system aligns with the current economic scenario. The government's commitment to creating a more inclusive and efficient tax framework is evident in these progressive changes, which are set to have a positive impact on the economy.