Union Budget 2025 Takeaway: Modi govt to forgo Rs 1 lakh cr on direct taxes, Rs 2,600 cr indirect taxes

This is because of the changes in the tax rates, FM Sitharaman announced.

Finance Minister Nirmala Sitharaman on Saturday announced that the Narendra Modi government would forgo Rs 1 lakh cr on direct taxes and Rs 2,600 cr indirect taxes, on account of the change in tax rates.

This came when she was presenting her historic eighth Budget.

Sitharaman, in a relief to the middle class, announced income tax payers with annual income of Rs 12 lakh will get the benefit of Rs 80,000.

Track reactions to Budget here

A person with an annual income of Rs 18 lakh will get the benefit of Rs 70,000 in tax and persons with an annual income of Rs 25 lakh will get the benefit of Rs 1,10,000 in tax.

She also rejigged tax slabs - Nil for income up to Rs 4 lakh, 5 per cent for Rs 4-8 lakh, 10 per cent Rs 8-12 lakh, and 15 per cent for Rs 12-16 lakh.

A 20 per cent income tax will be levied on income between Rs 16-20 lakh, 25 per cent on Rs 20-24 lakh and 30 per cent above Rs 24 lakh, she said.

The Union Budget 2025 is the second Budget presented under the Modi 3.0 government, the first having come after the Lok Sabha elections. Like the previous Budgets, this has kept in mind the government's goal of Viksit Bharat by 2047.Yesterday, FM Sitharaman tabled the Economic Survey, which projects India's GDP to grow in the range of 6.3-6.8 per cent.In the last Budget, presented in June after NDA won the Lok Sabha polls, FM proposed new income tax slabs -- up to Rs 3 lakh nil, Rs 3-7L 5%, Rs 7-10L 10%, Rs 10-12L 15%, Rs 12-15L 20%, above Rs 15L 30%. Fiscal deficit was estimated at 4.9 per cent of GDP and Sitharaman had stated the government aimed to reach 4.5 per cent fiscal deficit in 2025-26.

Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.