When Finance Minister Nirmala Sitharaman rose to present Budget 2025, few anticipated the bold move that would dominate conversations across the country. In a landmark announcement, she revealed that individuals earning up to ₹12 lakh annually under the new tax regime will now pay zero income tax.

For millions of middle-class taxpayers, this isn’t just a policy shift — it’s a financial lifeline. The middle class, often seen as the silent engine driving India’s economic growth, is finally at the center of fiscal relief. This budget doesn’t just nod to their contributions; it delivers a tangible, transformative impact on their take-home income.

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Recognizing the pivotal role of the middle class in India’s economic framework, Finance Minister Nirmala Sitharaman stated, “The middle class provide strengths to the economy. In recognition of their contribution, we have periodically reduced the tax burdens.” Budget 2025 amplifies this commitment, offering sweeping tax reliefs tailored for salaried individuals and small business owners alike.

At the heart of this reform is the complete waiver of income tax for those earning up to ₹12 lakh annually under the new regime. This isn’t limited to special categories; it applies broadly to normal income, excluding special rate incomes like capital gains. A taxpayer in this bracket stands to gain a substantial benefit of ₹80,000 in tax savings — essentially eliminating their entire tax liability as per the existing rates.

This adjustment means that even those slightly above the ₹12 lakh mark can breathe easier, thanks to the standard deduction buffer.

The relief doesn’t stop there. Individuals with an income of up to ₹18 lakh will enjoy a tax benefit of ₹70,000, which translates to 30% of the tax they would have otherwise paid. For higher earners, the gains continue — someone earning ₹25 lakh annually will save ₹1,10,000, equating to 25% of their current tax liability.

Budget 2025 signals more than just fiscal adjustments; it reflects a strategic shift in how the government acknowledges and supports the economic backbone of the country. For the middle class, it’s not just a budget — it’s a breakthrough.