New Delhi: Union Finance Minister Nirmala Sitharaman today presented the Union Budget 2025-26. This is the second Budget by the BJP-led NDA government since it was re-elected last year. Finance Minister Nirmala Sitharaman became the first finance minister in India’s history to deliver eight consecutive budgets. She surpassed the record previously held by Morarji Desai, who presented six consecutive budgets between 1959 and 1963.
According to Article 112 of the Constitution, the government is required to present a statement of estimated income and expenses for each financial year, which runs from April 1 to March 31, to the Parliament.
Finance Minister Nirmala Sitharaman in her Union Budget 2025 speech today announced a new tax slab that has been refreshed across the board. Under the new regime, there is no tax on income up to Rs 12 lakh, and no tax on income up to Rs 12.75 lakh for salaried people, due to the standard deduction of Rs 75,000.
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The new tax regime slab is as follows:
Up to Rs 4 lakh – 0 per cent
Rs 4-8 lakh – 5 per cent
Rs 8 12 lakh – 10 per cent
Rs 12-16 lakh – 15 per cent
Rs 16-20 lakh – 20 per cent
Rs 20-24 lakh – 25 per cent
Above Rs 24 lakh – 30 per cent
The total tax benefit of slab rate changes and rebate at different income levels can be illustrated with these examples:
A taxpayer in the new regime with an income of Rs 12 lakh will get a benefit of Rs 80,000 in tax (which is 100 per cent of tax payable as per existing rates).
A person having income of Rs 18 lakh will get a tax benefit of Rs 70,000 (30 per cent of tax payable as per existing rates).
A person with an income of Rs 25 lakh gets a benefit of Rs 1,10,000 (25 per cent of tax payable as per existing rates).
The new tax regime is the default regime. To avail the benefit of NIL tax liability, taxpayers only need to file their Income Tax Return (ITR)—no additional steps are required.