Finance Minister Nirmala Sitharaman has announced significant tax relief in Budget 2025, raising the nil tax slab from ₹7 lakh to ₹12 lakh under the new tax regime. This move aims to provide major relief to middle class taxpayers by increasing disposable income and encouraging savings.

For salaried employees, this nil tax limit will be Rs 12.75 lakh per annum, after taking into account a standard deduction of Rs 75,000. Higher exemptions and rejigs have been effected under the new income tax regime.