In a significant move to ease the tax burden and boost economic growth, Finance Minister Nirmala Sitharaman unveiled a revamped income tax structure in the Union Budget 2025-26. The revised tax slabs offer substantial relief, with income up to ₹4 lakh remaining tax-free, while slabs ranging from 5% to 30% apply progressively for higher incomes. Notably, taxpayers earning ₹12 lakh annually will now fall under the 10% bracket, securing a direct tax saving of ₹80,000 compared to previous rates. The government aims to enhance disposable income, stimulate consumer spending, and encourage investments, strengthening India’s economic momentum. These reforms mark a pivotal shift in India’s tax policy, offering relief to millions while fostering growth.
