PrashantNews
Reposing faith on middle class in nation building, the Union Budget 2025-26 proposes new direct tax slabs and rates under the new income tax regime so that no income tax is needed to be paid for total income upto ₹ 12 Lakh per annum, i.e. average income of Rs 1 Lakh per month, other than special rate income such as Capital Gain.
Salaried individuals earning upto ₹ 12.75 Lakh per annum will pay NIL tax, due to standard deduction of ₹ 75,000.
Towards the new tax structure and other direct tax proposals, Government is set to lose revenue of about ₹ 1 lakh crore.
Under the guidance of Prime Minister Narendra Modi, the Government has taken steps to understand the needs voiced by the people. The direct tax proposals include personal income tax reform with special focus on middle class, TDS/TCS rationalization, encouragement to voluntary compliances along with reduction of compliance burden, ease of doing business and incentivizing employment and investment.
The Budget proposes revised tax rate structure under the new tax regime as follows;
Total Income per annum Rate of Tax
₹ 0 – 4 Lakh NIL
₹ 4 – 8 Lakh 5%
₹ 8 – 12 Lakh 10%
₹ 12 – 16 Lakh 15%
₹ 16 – 20 Lakh 20%
₹ 20 – 24 Lakh 25%
Above ₹ 24 Lakh 30%