Union Budget 2025 Government Announced a big tax rebate under the new tax regime

Budget 2025: Finance Minister Nirmala Sitharaman has taken special care of taxpayers in the general budget of 2025-26. The government has changed the tax slab under the New Tax Regime, which will benefit more than 85 % income tax payers. Taking care of most of the taxpayers of the country, people have been relieved of tax burden annually up to Rs 12.75 lakh. That is, they will not have to pay a single penny tax.

Government will get strong losses due to new announcement

Understand this as an example- according to data from 2021-22, 6.33 crore taxpayers in India paid individual income tax. Out of these, 5.51 crore taxpayers (about 87 percent) annual income was less than Rs 10 lakh. Whereas under the new tax system, now they do not have to pay any tax. Speaking to CNN-NEWS18, a senior government official said, “The measure of exemption on tax is very high under this new step.” This will benefit the middle class paying the most tax in the country. However, this will cause a loss of 1 lakh crores in the revenue received by the government.

Number of people choosing new tax regime may increase

In the past years, the number of people adopting New Tax Reseam has increased in the same way. Now after this announcement of the government, their number will increase even more. A total of 7.28 crore people filed income tax returns (ITR) for the year 2024-25. Of these, 5.27 crore (72 percent) selected New Tax Resetam, while 2.01 crore ITRs entered under the old tax system.

Speaking on the income tax exemption in the budget, Prime Minister Narendra Modi said, “This budget will fill the pockets of the people, not the treasury of the states.”

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Income Tax Slabs: Big announcement made on income tax slab, no tax up to 12 lakhs