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Budget 2025: Salaried people’s income up to ₹12.75 lakh to be tax free, government will waive tax on all lower slabs

Finance Minister Sitharaman presented the first full budget of the third term of the Modi government. The total budget is ₹50.65 lakh crore. By making income up to ₹12.75 lakh tax free for salaried people, the government has managed to woo the middle class and also Delhi, where voting is after 4 days.

In the budget, the FM opened the way for electric cars, mobiles and LEDs to become cheaper. The prices of cancer and some essential medicines will also come down.

Through this, the government has also tried to woo Bihar, where elections are to be held at the end of the year. Wearing a Madhubani saree, Sitharaman mentioned Bihar in the 9th minute of her speech and announced the formation of a Makhana Board.

Income up to ₹12.75 lakh tax free for salaried people

If salaried people choose the new tax regime, they will not have to pay any tax on income up to ₹12.75 lakh annually. This benefit will be available like this…

₹0 to ₹4 lakh – zero

₹4 to ₹8 lakh – 5%

₹8 to ₹12 lakh – 10%

The government will waive the tax of the second and third slabs under 87A. Apart from this, a standard deduction of ₹75 thousand will also be available. In this way, the total income of ₹12.75 lakh of employed people will become tax free.

Keep in mind that this relief is only for employed people. If there is income from any other source, the limit of tax exemption will be only ₹12 lakh. Also, now all taxpayers will be able to file IT returns of the last 4 years together. Earlier this limit was 2 years. At the same time, the limit of TDS for senior citizens has been increased from ₹50 thousand to ₹1 lakh.

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