Budget 2025: Middle-Class Taxpayers Rejoice as New Regime Offers Major Relief with ₹12.75 Lakh Exemption

In a landmark move, the Indian government has revamped the tax regime in the Budget 2025-26, significantly benefiting the middle class. The new structure exempts individuals earning up to ₹12 lakh from income tax, a substantial increase from the previous threshold of ₹7 lakh. Additionally, the basic exemption limit has been raised to ₹4 lakh, with new tax slabs introduced to ease the financial burden on taxpayers. These changes are expected to enhance disposable income and stimulate economic growth by boosting household consumption. 

 

Source: Upstox, Times of India, Al Jazeera.