Budget 2025: Salaried Individuals to get Income of Up to ₹12.75 Lakh Completely Tax-Free

Budget 2025 has a massive announcement from the government on taxes for salaried people- it is boosting tax rebates under Section 87A significantly. In other words, all salaried individuals will have no tax liabilities on an income of up to ₹12.75 lakh every year, at least when paying taxes in the new regime.

Key Features of the New Tax Rebate:

1. Increased Rebate Limit: Section 87A rebate has been significantly increased to ensure that income up to ₹12.75 lakh is free from tax.
2. **Promotion of New Tax Regime :
   This step is one of the continuous steps by the government to make the new tax regime more appealing and to ease the slabs by offering more incentives.
3. **Increase in Disposable Income: **
   The revised rebate is likely to touch the lives of crores of salaried tax filers and have an impact on their disposable incomes and increase spending activity in the economy.

Example of Tax Savings

With the previous regime, taxpayers earning ₹12.75 lakh had to shell out a sizeable amount towards tax. However, with this revised relief, salaried taxpayers under the new regime would save a sizeable portion of their earnings.

Government’s Plan

The enhanced rebate reflects the government’s commitment to supporting the middle class and simplifying the tax system. By providing relief to salaried individuals, the budget aims to spur economic growth through increased consumption.

This development has been widely welcomed, as it offers much-needed relief to the salaried class while ensuring alignment with the government’s broader economic reforms.

Stay tuned for more on Budget 2025 and its implications for us!