5 Income Income Tax Relief Measures Announced in Budget 2025 by Nirmala Sitharaman

In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced several income tax relief measures to benefit taxpayers. These changes aim to reduce the tax burden, simplify filing procedures and encourage savings. The government has raised tax slabs, increased the exemption limit and introduced benefits for small businesses. These steps are expected to boost disposable income and improve economic growth across different income groups.

5 Income Tax Relief Measures Announced in Budget 2025

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on February 1, 2025, in Parliament. This budget introduced several income tax benefits that will help salaried individuals pensioners, and small taxpayers. Below are the key income tax reliefs announced in the Budget 2025.

No Income Tax for Income up to Rs12 lakh

The biggest relief for taxpayers is that individuals earning up to Rs12 lakh per year will not have to pay any income tax. This will help middle-class and lower-income groups save more money.

New Tax Slabs Announced

The government has introduced new income tax slabs in the Budget 2025. The revised tax structure is:

₹0 – ₹4 Lakh: No tax
₹4 Lakh – ₹8 Lakh: 5% tax
₹8 Lakh – ₹12 Lakh: 10% tax
₹12 Lakh – ₹16 Lakh: 15% tax
₹16 Lakh – ₹20 Lakh: 20% tax
₹20 Lakh – ₹24 Lakh: 25% tax
Above ₹24 Lakh: 30% tax

This new structure makes tax calculation easier and provides relief to many taxpayers.

Tax Benefits for Different Income Groups

With the new tax system, different income groups will get the following benefits:

A taxpayer earning ₹12 lakh will save ₹80,000 in tax.
A taxpayer earning ₹18 lakh will save₹70,000 in tax.
A taxpayer earning ₹25 lakh will save ₹1.10 lakh in tax.

Higher Standard Deduction for Salaried and Pensioners

The government has increased the standard deduction under the new tax regime to ₹75,000. This means that salaried individuals and pensioners can deduct ₹75,000 from their taxable income.

This increases the tax-free income limit to ₹12.75 lakh for salaried individuals.

For those choosing the old tax regime, the standard deduction remains ₹50,000, but they can still claim other deductions like:

Section 80C (₹1.5 lakh deduction)
Section 80D (health insurance deduction)
HRA (House Rent Allowance) benefits

Higher TDS Limit on Rent Payments

The government has raised the TDS (Tax Deducted at Source) limit on rent from ₹2.4 lakh to ₹6 lakh per year.

This means that if a tenant is paying rent below ₹6 lakh per year, they do not need to deduct TDS before paying the landlord. This will reduce the burden on small landlords and tenants.

Akansha Arora

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