Income Tax Changes in Budget 2025: The Finance Minister has reduced tax rates and increased the scope of exemptions, giving a big relief to the mid-class and employed class. Now the common man will have more money left and the country’s economy will also benefit from it.
Even before presenting the Budget 2025, Finance Minister Nirmala Sitharaman had indicated that this budget will be dedicated to the common man and the middle class. She made these indications come true through her announcements and provided relief to the working class and the middle class by giving a big exemption in income tax. TDS and TCS will be reduced, due to which they will have more money in their hands. TDS deducted on salary will be reduced.
Under this, now FD deduction of Rs 1 lakh has been made. The amount to be sent abroad has also been increased to Rs 10 lakh. TCS will now be charged only from those who do not have PAN. The facility of updating the return has also been provided, which will benefit 90 lakh taxpayers. The return can be re-filed i.e. updated return in the assessment year up to 4 years. Now, if the taxpayers have 2 properties then no tax will be levied on them. Till now it was limited to only one property. For senior citizens, the deduction on FD has been increased from Rs 50,000 to Rs 1 lakh, while the exemption for filing ITR has been increased from Rs 5 lakh to Rs 10 lakh.
Gift to the middle class
The middle class will not have to pay any tax up to Rs 12 lakh. Till now it was only Rs 7 lakh. This has been increased by Rs 5 lakh at a time and no tax will be taken from those earning up to Rs 1 lakh every month. A tax deduction of Rs 75 thousand will also be given in this. No tax will be levied on income up to Rs 12 lakh 75 thousand.
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