Budget to Bring Major Relief for Salaried Individuals; Income Up to ₹10 Lakh Likely to Be Tax-Free

Salaried individuals in India are expected to receive significant relief in the upcoming Union Budget 2025-26. Reports suggest that the government is considering raising the income tax exemption limit to ₹10 lakh. This announcement is anticipated to be made by Finance Minister Nirmala Sitharaman when she presents the Budget on February 1.

Currently, individuals with an annual income of up to ₹7.75 lakh benefit from a tax exemption due to the standard deduction of ₹75,000. However, sources indicate that the government plans to increase this threshold to ₹10 lakh, offering more relief to middle-class taxpayers.

Additionally, revisions to income tax slabs are reportedly being considered. Presently, income between ₹15 lakh and ₹20 lakh is taxed at 30%. It is speculated that this rate may be reduced to 25%, providing relief to those earning over ₹15 lakh annually.

Experts believe this move will not only ease the tax burden on individuals but also boost consumer spending. Increased disposable income is expected to encourage higher expenditure, ultimately benefiting the economy and government revenues in the long run.