Income Tax Budget 2025: Who is likely to benefit most from FM Nirmala Sitharaman's tax slab change?

Union Finance Minister Nirmala Sitharaman announced a host of measures while presenting the Union Budget 2025-26 in the Parliament on February 1. The most important for middle class and salaried taxpayers was the ‘no’ income tax for those earning up to ₹12 lakh (or ₹12.75 lakh for salaried taxpayers with a basic deduction of ₹75,000).

The government has established new tax slabs to significantly lower middle-class taxes and give them more money, increasing household consumption, savings, and investment. Earlier during the Budget speech, Sitharaman said the new tax structure will increase disposable incomes, boost household savings, consumption, and investment.