New Delhi: In a major relief for taxpayers, Finance Minister Nirmala Sitharaman announced that 1 crore more people will now be exempt from paying income tax following the increase in the rebate threshold to ₹12 lakh in the Union Budget 2025-26. Addressing a post-budget press conference on Saturday, she stated that the move would “put more money in the hands of people.”
Tax Rebate Increased from ₹7 Lakh to ₹12 Lakh
The Union Budget 2025-26 has significantly raised the tax rebate limit under the new tax regime, ensuring that individuals with a net taxable income of up to ₹12 lakh will now pay zero income tax. This marks a notable increase from the previous threshold of ₹7 lakh, providing much-needed relief to the middle class and salaried taxpayers.
New Income Tax Bill to be Presented in Parliament
FM Sitharaman also confirmed that the new Income Tax Bill will be presented in Parliament next week and will be referred to a Standing Committee for further review and recommendations.
No Reduction in Capital Expenditure, Fiscal Prudence Maintained
Clarifying concerns about public spending, Sitharaman assured that there is no reduction in capital expenditure in the Union Budget 2025-26. She highlighted that the government continues to focus on the multiplier effect of capital investment to drive economic growth while maintaining fiscal prudence.
Focus on ‘Viksit Bharat’, Education, and Healthcare
The Finance Minister emphasized that the Budget 2025-26 is aligned with the vision of ‘Viksit Bharat’, addressing both rural prosperity and urban development. She noted that the Budget continues to focus on structural reforms while prioritizing education and healthcare. As part of this commitment, more medical college seats will be made available across the country to strengthen the healthcare sector.
Amendments to Atomic Energy and Nuclear Liability Laws
Sitharaman also announced that two key amendments would be made to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These changes aim to enhance India’s energy security, supporting the country’s nuclear energy expansion as part of a sustainable and self-reliant energy strategy.
The Union Budget 2025-26 underscores the government’s commitment to taxpayer relief, economic development, and long-term energy security, setting the stage for a more prosperous and resilient India.
