The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has introduced major changes to India’s income tax structure. These revisions aim to reduce the tax burden on individuals, stimulate spending, and support economic growth. In this blog, we’ll break down the key tax announcements and what they mean for you.
Income Tax Slabs Revised – More Savings for the Middle Class
One of the biggest highlights is the increase in the basic exemption limit. The government has raised the non-taxable income threshold from ₹7 lakh to ₹12.8 lakh under the new tax regime, allowing taxpayers to save more money. This move is expected to boost consumer spending and provide financial relief to the middle class.
Updated Income Tax Slabs – What’s New?
To make tax filing easier and more beneficial, the government has restructured the tax slabs under the new regime. While specific details are still being released, the changes are aimed at ensuring lower tax outgo for salaried individuals and professionals.
Higher Standard Deduction – More Savings for Salaried Individuals
Good news for employees! The standard deduction has been increased from ₹50,000 to ₹75,000. This means more take-home salary for millions of taxpayers across India.
Capital Gains Tax Rate Increased – What It Means for Investors
The long-term capital gains (LTCG) tax rate has been revised from 10% to 12.5%. This will impact individuals investing in stocks and mutual funds, making tax-efficient investment planning more crucial than ever. Investors are advised to reassess their portfolios to minimize tax liabilities.
How These Tax Changes Benefit You
For Salaried Employees: More tax exemptions and higher standard deductions mean higher take-home pay.
For Investors: A slight increase in capital gains tax calls for smart investment planning.
For Business Owners: More money in consumers’ hands could lead to higher demand and sales.
For the Middle Class: The revised slabs and deductions reduce the overall tax burden, offering greater financial flexibility.
Final Thoughts – A Budget for Growth and Relief
The Union Budget 2025-26 introduces taxpayer-friendly reforms, particularly for the middle class and salaried individuals. By increasing the tax exemption limit and standard deduction, the government ensures that people have more money to spend and invest. While investors need to adjust to the LTCG tax increase, the overall impact is expected to be positive.
For further details, you can check out the official sources:
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