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India Budget 2025: Annual income up to Rs 10 lakh will be tax-free, 25% new tax slab will be announced

The government is going to announce tax relief for the middle class in the Union Budget. Experts say that the government’s announcement will be for the new regime of income tax. In the new regime, income up to Rs 10 lakh per annum will be tax-free.

India Budget 2025: The government is going to make big announcements in the Union Budget 2025. Finance Minister Nirmala Sitharaman will announce income tax relief on February 1. Experts say that taxpayers of the new tax regime can get more relief. The government will make income up to Rs 10 lakh per annum tax-free. A new slab of 25 percent tax will be introduced for people with an annual income of Rs 15 lakh to Rs 20 lakh. Business Standard has given this news quoting government sources.

Income up to Rs 10 lakh tax-free

The government had increased the standard deduction to Rs 75,000 in the new tax regime in the Union Budget last year. Due to this, salaried taxpayers with an annual income of up to Rs 7.75 lakh are no longer required to pay tax. But, salaried taxpayers with an annual income of more than Rs 15 lakh have to pay 30 percent tax. “We are looking at both options. If the budget allows, we may implement both measures,” a government source told Business Standard.

Annual loss of 50000 to one lakh crore to the government

He said, “Income tax up to Rs 10 lakh can be made tax-free. Also, a new slab of 25 percent tax can be started for income up to Rs 15-20 lakh.” He said that due to this, the government may lose Rs 50,000 to Rs 1,00,000 in annual revenue, for which the government is ready. Moneycontrol has not been able to independently verify this information.

Advice to reduce tax on middle class

Economists have advised the government to give tax relief to the middle class to increase consumption. Due to reduction in tax burden, people will have more money in their hands, due to which they will be able to spend more. Inflation, especially the inflation of food items, has increased the difficulties of the people. Due to this, people are spending less. This is affecting economic activities. In the second quarter of this financial year, GDP growth has come down to 5.4 percent. Experts say that if the government does not take immediate measures, the economy may go into a slowdown.

Consumption can increase by reducing taxes

Consumption has to be increased to prevent the economy from going into a slowdown. Tax experts say that if the government reduces the tax burden on the middle class, then consumption can increase. Currently, in the old regime of income tax, 30 percent tax is levied on income above Rs 10 lakh per annum. In the new regime of income tax, 30 percent tax is levied on income above Rs 15 lakh per annum.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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