News By: Purvi Goyal
Finance Minister Nirmala Sitharaman announced her Union Budget for 2025-26 on (February 1, 2025) slowing economic activity with a significant ₹1 lakh crore tax stimulus for households of the sort the government has generally refrained from — in the hope that India’s weakening domestic demand will rebound and bring the economy back to the fast lane.
Under the new personal income tax regime, where no other exemptions are allowed, one crore taxpayers could have a zero-tax liability, with the exception of incomes from sources like capital gains that are subject to special rates. Under the new regime, no income tax would be due on annual incomes up to ₹12 lakh, up from the current limit of ₹7 lakh.
