Income Tax Slabs | Budget 2025: PM Modi says tax rebate will provide big benefit to middle class

Income Tax Slabs | Budget 2025 LIVE: “There is an interesting change to the income tax law with respect to foreign companies branch taxation (typically to cover entities from Taiwan/ US). If any such company is helping Indian companies to set up or operating electronics manufacturing facilities by provision of specialised services and technology, then they would be subjected to a presumptive tax on a deemed profit of 25% on all receipts/ payments to such entity (as a foreign branch – so the effective tax would be 40% of 25% = ~ 10%),” Sridhar R, Partner, Grant Thornton Bharat says.

“The understanding is that electronic manufacturing facilities such as fabrication facilities / chipset/ foundry etc. that need specialised services and technology can be notified by MEiTY to get covered under this clause. This gives the foreign entity the flexibility to operate as a branch without the need to set up an Indian company to provide such services. Also, above does away with an arbitrary controversy under TP and Domestic Income Tax law for such companies.”

Income Tax Slabs | Budget 2025 LIVE: Union finance minister Nirmala Sitharaman in her Budget 2025 speech on Saturday proposed to rationalise tax deduction at source (TDS) by reducing the number of rates and thresholds above which TDS is deducted. In her 8th consecutive budget speech, Nirmala Sitharaman said that the threshold amounts for tax deduction will be increased for better clarity and uniformity. Check TDS threshold limits here.

Income Tax Slabs | Budget 2025 LIVE: On the new income tax slabs, Prime Minister Narendra Modi says: "In this budget, income up to ₹12 lakh per annum has been made tax-free. For all income groups, taxes have been reduced. It will hugely benefit our middle class. It will be an opportunity for the people who have recently joined the workforce..."

Income Tax Slabs | Budget 2025 LIVE: On Union Budget 2025, Prime Minister Narendra Modi says: “Usually the focus of the budget is on how the government treasury will be filled, but this budget is exactly the opposite of that. How will this budget fill the pockets of the citizens of the country, how will the savings of the citizens of the country increase and how will the citizens of the country become partners in development…this budget lays a very strong foundation for this.”

Income tax new slabs LIVE: "This budget is a force multiplier. This budget will increase savings, investment, consumption and growth rapidly. I congratulate finance minister Nirmala Sitharaman and her entire team for this Janta Janardan's, People's budget," Prime Minister Narendra Modi says.

Income tax new slabs LIVE: "Today is an important milestone in India's development journey. This is the budget of aspirations of 140 crore Indians. This is a budget that fulfils the dreams of every Indian. We have opened many sectors for the youth. The common citizen is going to drive the mission of Viksit Bharat," Prime Minister Narendra Modi says.

Income tax new slabs LIVE: For every rupee in the government coffer, the biggest pie of 66 paise will come from direct and indirect taxes, according to the Union Budget 2025-26 documents.

Around 24 paise will come from borrowings and other liabilities, 9 paise from non-tax revenue like disinvestment, and 1 paise from non-debt capital receipts, the Budget documents said.

Income tax new slabs LIVE: Union minister Hardeep Puri on new tax slabs: “...It was an excellent budget... The middle class has been exempted from the income tax on income of up to ₹12 lakhs and many such provisions are there…”

Income tax new slabs LIVE: On Union Budget 2025, Union Minister Piyush Goyal says: "She (Nirmala Sitharaman) has given a much-needed big relief to the middle class. Everybody whose income is up to ₹12 lakhs or whose salary earner is up to ₹12 lakhs 75 thousand is now exempt from all taxes. Up to 25 lakhs, there is a continuous reduction in income tax and then beyond that also everybody saves a lakh of rupees.

He adds: “In a way, the Finance Minister has met the demand of a large section of the middle class, particularly as more and more poor are coming into the middle class with rising incomes.”

Income tax new slabs LIVE: "The Union Budget 2025 reflects a strong commitment to strengthening India's agricultural ecosystem, with a clear focus on enhancing productivity, promoting crop diversification, and improving post-harvest infrastructure," says Angshu Mallick, MD & CEO of Adani Wilmar.

"The focus on tax reliefs and measures aimed at increasing disposable incomes, especially for the middle class, is a positive move that will strengthen purchasing power and drive demand for quality food products," he adds.

Income tax new slabs LIVE: Maharashtra chief minister Devendra Fadnavis says that the Union Budget 2025 is "dream budget" particularly for the middle class.

" Income Tax exemption slab has been modified and income tax exemption has been raised up to ₹12 Lakhs. This announcement will prove to be a milestone in India's economy... This will result in disposable income in the hands of a large section of people, there will be purchase, demand will increase, and MSME will benefit, employment will be generated. So, we will see a vast impact on the economy," Fadnavis says.

Income tax new slabs LIVE:As per the budget document, those with annual salaries of ₹8 lakh, ₹9 lakh, ₹10 lakh, ₹11 lakh, and ₹12 lakh will not pay any taxes. Those with salaries of ₹16 lakh, ₹20 lakh, ₹24 lakh, and ₹50 lakh will pay decreased amounts.

Income tax new slabs LIVE: “I think frankly the applause you heard from the benches was for the middle-class tax cut. We'll look at the details and that may be a good thing. So if you have a salary you may be paying less tax. But the important question is what happens if we don't have a salary?” the Congress MP says on new income tax slabs announced in the budget. “Where is the income going to come from? For you to benefit from income tax relief, you actually need jobs,” he tells ANI.

Income tax new slabs LIVE: NSE MD Ashish Kumar Chauhan on new income tax slabs says: "Those with income up to ₹12 Lakhs have been exempted from paying tax. This is good. A little portion of the money would go towards consumption and the profitability of companies would also increase...The money that is saved can also enter the stock market through investment. So, this should be called a good Budget for the stock market."

Income tax new slabs LIVE: Union minister Nitin Gadkari says that reforms in income tax slabs will be a massive benefit to the people of the middle class.

“Finance Minister Nirmala Sitharaman has presented a historic budget of the country. This budget has a speciality to accelerate our budget. Just like always, this time also, she has given the infrastructure sector priority - the budget for the sector has increased and it will help infra and roads,” Gadkari says. "The agriculture sector has also been given the priority. Income tax reform will be a massive benefit to the people of the middle class... This budget has encouraged the public-private partnership..."

Income tax new slabs LIVE: The government estimates that collections from income tax will rise 14.4% to ₹14.38 lakh cr in FY26. Corporate tax to increase 10.4% to ₹10.82 lakh crore, according to Budget documents.

Income tax new slabs LIVE: Gross tax revenue expected to rise to ₹42.70 lakh for FY26, up by 11% from the revised estimate of FY25, according to Budget documents.

Income tax new slabs LIVE: Income tax budget announcement: On budget announcements, Shiv Sena (UBT) MP Priyanka Chaturvedi tells ANI: "It's a victory of the middle class; mainly because of them (BJP in Lok Sabha elections) being limited to 240 seats. In the last 10 years, the middle class had this demand - today they have been heard and hence I welcome that (no income tax on income of up to ₹12 lakhs). Second thing, Bihar must be thinking if it can have an election every year..."

Income tax budget announcement: Union home minister Amit Shah says that middle class is always in PM Modi’s heart.

“Zero Income Tax till ₹12 Lakh Income. The proposed tax exemption will go a long way in enhancing the financial well-being of the middle class. Congratulations to all the beneficiaries on this occasion,” the home minister writes on X.

In a major announcement, Union finance minister Nirmala Sitharaman said that there will be no income tax payable for those with an income up to ₹12 lakh.

Under the new tax regime, the finance minister proposed a revised tax structure:

₹0 to ₹4 lakh: Nil

₹4 to ₹8 lakh: 5%

₹8 to ₹12 lakh: 10%

₹12 to ₹16 lakh: 15%

₹16 to ₹20 lakh: 20%

₹20 to ₹24 lakh: 25%

Above 24 lakh: 30%

Income tax budget announcement: Union minister Jyotiraditya Scindia tells ANI: “This budget is for Viksit Bharat and the PM's resolve to fulfil the dream of a new and energetic India... A new map has been drawn after having a proper study of every sector... It's a composite budget that will take India forward and not only make India self-reliant but establish it as the Vishwaguru”

Income tax budget announcement: "A big gift for the middle class. Under the visionary and strong leadership of respected Prime Minister Narendra Modi ji, an important decision has been taken to make the income of ₹12 lakh tax-free under the Union Budget 2025-26, giving a big relief to the middle class," Uttarakhand CM Pushkar Singh Dhami write on X.

Income Tax Budget Announcement: In a major announcement, FM Nirmala Sitharaman said that under the new tax regime, there will be zero income tax up to an annual income of ₹12 Lakh.

“No Income Tax payable up to an income of ₹12 Lakh. Slabs and rates being changed across the board to benefit all tax-payers,” the FM told the Parliament.

She further added: "...I propose to revise tax rate structures as follows: 0 to ₹4 Lakhs - nil, ₹4 Lakhs to ₹8 Lakhs - 5%, ₹8 Lakhs to ₹12 Lakhs - 10%, ₹12 Lakhs to ₹16 Lakhs - 15%, ₹16 Lakhs to ₹20 Lakhs - 20%, ₹20 Lakhs to ₹24 Lakhs - 25% and above ₹24 Lakhs - 30%. To taxpayers up to ₹12 Lakhs of normal income other than special rate income such as capital gains, tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them..."

Income Tax Slab 25-26 LIVE: The annual limit for Tax Deducted at Source (TDS) on rent will be increased from ₹2.40 lakh to ₹6 lakh, finance minister Nirmala Sitharaman announced in her budget speech.

Income Tax Slab 25-26 LIVE: “New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment,” the finance minister announced.