New Income Tax Slabs & Rates 2025: Major Tax Cuts & Benefits for Middle Class

**Revised Income Tax Slabs and Rates to Benefit All Taxpayers**  

The income tax brackets and rates have been revised universally to advantage all taxpayers. The updated framework will significantly lower the tax burden on the middle class, allowing them to retain more disposable income, thereby enhancing household spending, savings, and investments.  

For individuals earning up to ₹12 lakh in regular income (excluding special category income like capital gains), a tax rebate is being granted in addition to the relief from reduced slab rates, ensuring that they owe no taxes. The combined impact of slab rate adjustments and rebates at different income brackets can be demonstrated through examples.  

Under the new tax regime:  
- A taxpayer earning ₹12 lakh will receive tax relief of ₹80,000 (100% of the tax payable under previous rates).  
- An individual with an income of ₹18 lakh will benefit from a ₹70,000 reduction in tax (equivalent to 30% of their tax liability under the old structure).  
- Someone earning ₹25 lakh will see a tax savings of ₹1,10,000 (25% of their prior tax obligation).  

Finance Minister Nirmala Sitharaman emphasized the government's commitment to staying attuned to public concerns and responding effectively while maintaining a balance between economic growth and national development. The measures outlined below illustrate how, under the leadership of PM Modi, the government has proactively addressed the aspirations and feedback of its citizens. My tax proposals are driven by this very principle.  

Objectives of the Proposed Tax Reforms:
1. Overhauling personal income tax, with a special emphasis on the middle class.  
2. Streamlining TDS/TCS regulations to alleviate complexities.  
3. Promoting voluntary tax compliance.  
4. Minimizing regulatory burdens.  
5. Enhancing the ease of doing business.  
6. Encouraging employment and investment.