Budget 2025-26: 13 key announcements that will provide relief to Middle Class in India

Finance Minister Nirmala Sitharaman on Saturday announced Union Budget 2025-26 in the Lok Sabha. While FM Sitharaman made a plethora of announcements in multiple sectors like healthcare, education, agriculture, etc, it was income tax relief that grabbed everyone's attention. FM Sitharaman announced that there will be no income tax for income up to Rs 12 lakh. This announcement helped the Modi Government to endorse the Budget 2025 as middle-class-friendly. However, there are other key announcements as well that will impact or let's say will provide relief to the Middle Class section. Below is everything you need to know- 

Budget 2025-25: Key Announcements for Middle-Class

• Now there is no tax on income of 12 lakhs. The tax limit for employed people is 12.75 lakhs with 75 thousand standard diction.
• Tax exemption for senior citizens has been doubled.
• TDS limit has been made 10 lakh rupees.
• Updated ITR (Income Tax Return) can be filed for 4 years.
• TDS exemption on rental income has been made 6 lakh rupees.
• Mobile phones and e-cars will be cheaper.
• Lithium-ion batteries for EVs and mobile will be cheaper.
• LED-LCD TVs will be cheaper. Custom duty has been reduced to 2.5%.
• A new income tax bill will be introduced in the country next week
• An urban challenge fund of 1 lakh crore rupees will be created.
• A plan will be introduced to increase the income of the poor in urban areas.
• One lakh incomplete houses will be completed, and 40 thousand new houses will be handed over in 2025.
• The Jal Jeevan Mission program to provide tap water to every house will continue till 2028.

New Tax Slabs Explained in a Nutshell

Income tax payers have got a big relief in Nirmala Sitharaman's budget. Now salaried people choosing the new tax regime will not have to pay any tax on income up to ₹ 12.75 lakh annually.

₹ 0 to ₹ 4 lakh - zero
₹ 4 to ₹ 8 lakh - 5%
₹ 8 to ₹ 12 lakh - 10%

The government will waive the tax of the second and third slabs under 87A. Apart from this, a standard deduction of ₹ 75 thousand will also be available. In this way, the total income of ₹ 12.75 lakh of salaried people will become tax-free.

Keep in mind that this relief is only for salaried people. If there is income from any other source, the tax exemption limit will be only ₹ 12 lakh. Also, now all taxpayers will be able to file IT returns for the last 4 years together. Earlier this limit was 2 years. Whereas for senior citizens, the TDS limit has been increased from ₹ 50 thousand to ₹ 1 lakh.