Big Relief for Middle Class: ₹12 Lakh Income Now Tax-Free from April 1

Starting today, April 1, 2025, millions of middle-class taxpayers can breathe a sigh of relief as the government rolls out a game-changing update to the income tax slabs. With no tax levied on incomes up to ₹12 lakh, this bold move promises to put more money back into the pockets of hardworking Indians, marking a significant shift in financial planning for the year ahead.

Edited By: Madhulika Rai

Last Updated : 01 April 2025, 09:55 AM IST

New Income Tax Bill Ready (X/@JournoPranay)

The wait is over—effective April 1, 2025, the middle class gets a much-needed break as incomes up to ₹12 lakh are now completely tax-free. This landmark change in the 2025 tax regime is set to ease the burden on salaried individuals and small earners, offering a fresh start to the financial year with bigger savings and brighter prospects

New Income Tax Slab 2025
0.4 Lakh NIL

4-8 lakhs 5%
8-12 lakhs 10%

12-16 lakhs 15%
16-20 lakhs 20%
20-24 lakhs 25%
Above Rs 24 Lakh 30%
People with high income will also get benefit
This revision will impact not just middle-income earners but also those with higher incomes. For instance, a rebate of ₹90,000 will apply to incomes up to ₹20 lakh, while a rebate of ₹1,10,000 will be offered for incomes ranging from ₹25 lakh to ₹50 lakh.

Effect of tax slab on salary
With the introduction of the revised tax structure, workers whose yearly earnings fall between ₹7 lakh and ₹12 lakh might enjoy a salary boost of up to ₹6,600. On top of that, individuals filing taxes can claim a standard deduction of ₹75,000, raising the overall tax-free threshold to roughly ₹12.75 lakh.

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