Union Finance Minister Nirmala Sitharaman presented the budget for the financial year 2025-26 on Saturday. This is the eighth time Nirmala Sitharaman presented the budget in Parliament. Big announcements were made in the budget for all sectors. Looking at the budget, it seemed that it has been specially made for the middle class.
In fact, the government has tried to give a boost to the economy by giving income tax exemption to the middle class, which is the savior of the country’s economy. According to the new announcement, in the coming financial year 2025-26, salaried people will not have to pay any tax on income up to Rs 12.75 lakh annually.
There is no tax on income up to Rs 12 lakh
Other people will not be taxed on annual income up to Rs 12 lakh. This facility has been provided under the new system of income tax. Under the new system, the tax slabs have also been changed, due to which those earning up to Rs 24.75 lakh annually will be able to save Rs 1.10 lakh as compared to the present.
Regarding the changes in the tax slabs, Central Board of Direct Taxes Chairman Ravi Agarwal has said that the announcement of no tax on annual income up to Rs 12 lakh and changes in all tax slabs in the Union Budget may motivate more than 90 percent of taxpayers to adopt the new tax system. Till now this figure is about 75 percent.
8 crore people filed ITR
According to the Finance Ministry, by increasing the tax exemption limit from seven lakhs to 12 lakhs, one crore tax payers will become tax-free. In the current financial year, till December, more than eight crore people had filed Income Tax Returns (ITR), but out of these, 4.9 crore people had shown their income as zero tax.
Tax payers should know these thingsThere is a wave of happiness among the middle class people after the budget presented on Saturday. Meanwhile, every taxpayer must know about these ten things after the budget.
- Slab rates have been simplified under the new tax regime, which continues to be the default regime.
- Tax exemption for those availing new tax regime increased from ₹25,000 to ₹60,000 (not applicable for NRIs)
- Taxpayers can now claim the annual value of two self-occupied properties as “nil” without any conditions.
- The limit for tax collection at source (TCS) on foreign remittances has been increased from ₹7 lakh to ₹10 lakh.
- TCS will not be applicable on remittances made for educational expenses. (Earlier 0.5% was applicable on remittances above 7 lakhs)
- The time limit for filing updated returns has been extended from the existing 24 months to 48 months, but this includes 16 additional months and 70% interest on the aggregate.
- The tax deduction for self-contribution to the National Pension System (under the old tax regime) of Rs 50,000 has also been extended to contributions made in the name of minors under the NPS Vatsalya Scheme.
- The limit of tax deduction (TDS) on interest income for senior citizens has been increased to Rs 1 lakh from the present Rs 50,000.
- Rent paid by non-individuals is liable for TDS. The limit for such TDS has been raised from Rs 2.4 lakh per annum to Rs 50,000 per month or part of a month.
- The limit of TDS on dividend income and income from mutual fund units has been increased from the existing Rs 5,000 to Rs 10,000.
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