The Indian government has made a major announcement in the Union Budget 2025, providing significant relief to the middle class by declaring that no income tax will be payable on earnings up to ₹12 lakh per annum. This change is part of a broader effort to reduce the tax burden on individuals and stimulate growth in key sectors such as MSMEs, start-ups, and agriculture.

No Tax on Income Up to ₹12 Lakh
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025, revealed that the new tax regime will be a game-changer for the middle class. Under the updated provisions, individuals with an income of up to ₹12 lakh per year will be exempt from paying income tax. This is expected to put more money in the hands of taxpayers, enabling them to invest and spend, further boosting the Indian economy.

The announcement has been welcomed by various sections of the society, particularly the middle-income group, as it will ease their financial burdens. The new tax regime reflects the government’s focus on increasing disposable income for the masses, thus fostering a better standard of living for millions of taxpayers.

Introduction of a New Income Tax Bill
Along with the announcement of the tax relief, Nirmala Sitharaman also stated that a new Income Tax Bill will be introduced in Parliament next week. This bill is expected to bring more reforms to the taxation system and streamline processes for taxpayers. The Income Tax Bill 2025 will focus on simplifying the tax structure and eliminating ambiguities that have often led to confusion and inconvenience for both individuals and businesses.

The new Income Tax Bill will not only propose changes to income tax slabs but will also focus on enhancing ease of doing business and making the system more transparent. Additionally, the government has promised to introduce measures that will benefit Micro, Small, and Medium Enterprises (MSMEs) and start-ups. These businesses play a crucial role in India’s economy, and the new bill is expected to provide the much-needed support for their growth and sustainability.

Relief for the Middle Class
For the middle class in India, the announcement of no income tax on earnings up to ₹12 lakh comes as a welcome respite. This move is expected to benefit a large segment of the population and improve their financial well-being. By lifting the tax burden from individuals in the middle-income bracket, the government is encouraging increased savings and investment in the economy.

In addition to the income tax relief, the Union Budget has also proposed several initiatives for the agriculture sector. The government has pledged to enhance support for farmers, with a focus on technology adoption, sustainable practices, and improving agricultural infrastructure across the country.

Government’s Focus on MSMEs and Start-ups
The government’s initiatives for MSMEs and start-ups have also been a significant part of the Union Budget 2025. The proposed measures are aimed at reducing compliance burdens and encouraging innovation in small businesses. Furthermore, start-ups will benefit from enhanced access to funding and support from government-backed schemes designed to help these enterprises thrive.

The announcement of no income tax on earnings up to ₹12 lakh alongside new income tax reforms reflects the government’s commitment to creating a more favorable business environment while also prioritizing individual welfare. The changes are expected to have a positive impact on the overall economy and contribute to the country’s growth in the years ahead.

The Upcoming IPOs in this week and coming weeks are Chamunda Electricals, Ken Enterprises, Amwill Healthcare, Readymix Construction, Eleganz Interiors.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.