Indian Income Tax New Regime for FY 2025-26 | Union Budget 2025 | FM Sitharaman Budget

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, introduced significant reforms to India's income tax structure, particularly within the New Tax Regime. These changes aim to enhance the spending power of the middle class, simplify tax compliance, and stimulate economic growth.

These reforms reflect the government's commitment to creating a more taxpayer-friendly environment and fostering inclusive economic development. Taxpayers are encouraged to familiarize themselves with the new provisions to fully benefit from the changes introduced in the Union Budget 2025-26.

Here’s a point-wise summary of the Union Budget 2025-26 Income Tax Reforms:

1. Effective - New Financial Year starting from 1st April, 2025.
2. No Income Tax Up to ₹12 Lakh - Individuals earning up to ₹12 lakh annually are now exempt from paying income tax under the new tax regime.
3. Standard Deduction - For salaried individuals, who are eligible for a standard deduction of ₹ 75,000, the effective rebate limit now stands at Rs 12.75 lakhs.
4. New Tax Calculator  - This is the new tax calculated for the salaried tax payers