• Source:JND
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Union Budget 2025: Finance Minister Nirmala Sitharaman loosened the purse strings on Saturday, February 1, as she announced major tax relief for the citizens in Budget 2025-2026. A wave of joy swept over the Indian middle class as the finance minister announced an income tax rebate up to Rs 12 lakh per annum. The Budget 2025, which rejigged tax slabs and raised exemption limit, came as major relief to the salaried class. "I am now happy to announce that there will be no income tax payable up to income of Rs 12 lakh under the new regime," the finance minister said. After the standard deduction of Rs 75,000, this nil tax limit will be Rs 12.75 lakh per annum for the salaried class.

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," said Sitharaman.

However, the excitement was accompanied by confusion as the new tax slabs announced by Sitharaman left the netizens perplexed. Under the new tax slabs, for those earning up to Rs 12 lakh, no tax will be charged on income up to Rs 4 lakh, 5 per cent on income between Rs 4 and 8 lakh, 10 per cent on Rs 8-12 lakh.

A 15 per cent income tax will be levied on income between Rs 12-16 lakh, 20 per cent tax will be applicable on individual income between Rs 16 lakh and 20 lakh, 25 per cent on Rs 20-24 lakh and 30 per cent on salaries above Rs 24 lakh per annum.

The tax slabs left the netizens scratching their heads as they questioned how will the rebate work. An X user, Vibhu Gupta (@vibhugupta), responded to the Finance Ministry's X post, saying, "No tax till 12 lakh, then why is there a slab from 4-8 and 8-12??? What’s simple about this new regime?"

The tax slabs left the netizens scratching their heads as they questioned how will the rebate work. An X user, Vibhu Gupta (@vibhugupta), responded to the Finance Ministry's X post, saying, "No tax till 12 lakh, then why is there a slab from 4-8 and 8-12??? What’s simple about this new regime?"

Another user ameet (@ar_ameet) wrote, "Very confusing, especially the chart given. Why can’t we get clear communication from the ministry? The headline of no tax till 12 lakhs is different from no tax till 4 lakhs."

A X user, Nagarjuna Reddy (@TNagarjunaReddy), said,
"Salary is 1275000/- No tax
Salary is 1300000/- 75K tax
Seriously 🤦‍♂️🤦‍♂️"

Responding to the confused netizens, an X user rose to occasion to explain how income tax is calculated. Abhinit (@KushwahaAbhinit) shared a video where the tax slabs were explained.

Netizens weren't entirely unimpressed by the Modi 3.0 budget and several expressed happiness over the announcements made by Sitharaman. Hailing the "economic boost", one of the users, Navani (@drnavani,) said, "Fun fact: India now has better tax rates than all the countries in Europe including the leading economy in Europe, Germany. As per latest FY 2025, Germany exempts income up to €12,348 (~₹11Lakhs), while Modi govt’s new rules raise India’s limit to ₹12.75L, surpassing Europe’s top economy.More spending, more growth #EconomicBoost"