In the Union Budget 2025 presented on February 1, Finance Minister Nirmala Sitharaman announced significant changes to the income tax structure aimed at increasing disposable income and stimulating economic growth. The key highlights of the new tax regime are:
New tax regime:
up to Rs 4 lakh is 0%
Rs 4-8 lakh – 5%
Rs 8-12 lakh – 10%
Rs 12-16 lakh – 15%
Rs 16-20 lakh – 20%
Rs 20-25 lakh – 25%
Above Rs 25 lakh – 30%
These reforms are part of the government’s broader strategy to boost middle-class spending and support inclusive development. By increasing the basic exemption limit and adjusting tax slabs, the government aims to enhance disposable income, thereby stimulating consumption and economic growth.
Additionally, the government has proposed the introduction of a new Income Tax Bill in the coming week, signaling a move towards further simplification and modernization of the tax system.
These measures reflect the government’s commitment to transformative reforms in taxation, aiming to create a more taxpayer-friendly environment and drive the nation’s economic progress.
