new-tax-regime-to-leave-more-money-in-peoples-hands-says-fm

The Union Budget 2025-26 has brought significant relief to taxpayers, with Finance Minister Nirmala Sitharaman announcing revisions in tax slabs that will benefit around one crore people.

 

She emphasised that the changes will put more money in taxpayers’ hands, strengthening their financial position. The new tax regime now provides complete tax exemption for individuals earning up to ₹12 lakh, a substantial increase from the previous ₹7 lakh limit.

 

Speaking at a post-Budget press conference, Sitharaman highlighted the Modi government’s commitment to economic growth and its vision of a ‘Viksit Bharat’.

 

She pointed out that the revised tax slabs reflect the government’s intention to ease the financial burden on middle-class families while boosting economic activity.

 

The Finance Minister also compared the present tax structure with that of 2014, when the United Progressive Alliance (UPA) was in power.

 

She noted that individuals earning ₹8 lakh annually will now have Rs 1 lakh more in their hands, as their tax liability has been eliminated. Similarly, those with an annual income of ₹12 lakh will save ₹2 lakh in taxes under the new system.

 

Further elaborating on the tax benefits, Sitharaman explained that for individuals earning ₹24 lakh annually, the tax payable in 2014 was ₹5.6 lakh, whereas under the revised structure, it is now ₹3 lakh. This translates to savings of ₹2.6 lakh per year. 

 

Likewise, for those earning ₹8 lakh per year, the updated tax slabs will allow them to save ₹30,000, as their tax liability has been reduced to zero.

 

The government’s focus, she said, remains on ensuring a balanced economic approach where citizens have higher disposable incomes while the economy continues to expand.

 

She also dismissed concerns regarding any reduction in capital expenditure, stating that public spending on infrastructure remains a priority.

 

Sitharaman underlined that the government’s fiscal strategy is designed to support growth while ensuring tax relief for a broader section of the population.

 

The revisions in the tax slabs are seen as a move to strengthen financial stability among taxpayers while encouraging spending and investment in key sectors.

 

The revised income tax structure under the new regime is expected to play a crucial role in shaping the economic trajectory of the country.