Tax-free income limit in India is Rs 12 lakh

Last Updated on February 2, 2025 6:23 am

This time India has announced a major income tax cut. The budget was presented for the eighth time in the country on Saturday. According to the new tax structure, the tax-free income limit has been increased to Rs 12 lakh. NDTV.

Indian Finance Minister Nirmala Sitharaman has said that no income tax will be paid on income up to Rs 12 lakh. She said that the income tax reform has been made keeping in mind the middle class. Sitharaman also said that emphasis has been placed on simplifying TCS and TDS. The government is counting on the middle class. That is why this decision has been taken.

The budget document says that in the new tax system, income up to Rs 7 lakh was not taxed earlier. Now it has been proposed to increase it to Rs 12 lakh. That is, if the total income is up to Rs 12 lakh, no tax will be paid. And for salaried people, this limit has been set at Rs 12 lakh 75 thousand with an additional deduction of Rs 60 thousand.

The Indian government has introduced a new tax structure to reduce the tax burden on the middle class. This will give them more money in their hands. Which will help increase household spending, savings and investment. Many had high expectations about income tax in this year’s budget. Fulfilling those expectations, Finance Minister Nirmala Sitharaman made a big announcement.

In this regard, she said that the new income tax structure announced has reduced the tax burden on the middle class a lot. They will have more money in their hands. And as a result, domestic spending, savings and investment will increase.