No Income Tax For Those Earning Up To Rs 12 Lakh: FM Nirmala Sitharaman’s Mega Budget Relief

In a major relief for the middle class, Finance Minister Nirmala Sitharaman announced on Saturday that those earning up to Rs 12 lakh will not have to pay income tax, even as the slabs for and below the income bracket remain.

In her budget speech, Sitharaman said that under the new regime, normal income up to Rs 12 lakh, excluding capital gains income, will be tax-free. This is a significant relaxation in the income tax slab for those earning above this amount.

The Finance Minister also announced changes to the income tax slabs and rates for the financial year 2025-26. Those earning between Rs 2.5 crore to Rs 7 crore will have to pay an income tax rate of up to 20%, while those earning between Rs 8 crore to Rs 10 crore and above will be taxed at a rate of up to 30%.

The budget also proposes a standard deduction of up to Rs 100,000 for salaried employees, which is expected to boost take-home pay.

India's Neighbourhood First Policy: A Sign Of Stronger Relations With Maldives

In a move aimed at strengthening ties with its neighboring countries, India has increased its budgetary allocation for the Maldives, scaled up the budget by nearly Rs 130 crore, to Rs 600 crore from the previous year. This is a significant increase in support, which is seen as an expression of good intent and willingness to work closely with the island nation.

The decision comes after the Mohamed Muizzu-led government made efforts to correct misunderstandings and restore trust between India and the Maldives following tensions sparked by a dispute last October.