Union Budget 2025 'No Income Tax' Not Applicable If You Earn More Than 12 Lakhs

It is known to our readers that Finance Minister Nirmala Sitharaman announced there will be no Income Tax for those earning up to 12 Lakh Rupees.

There is a confusion about the applicability of this.

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To make it clear, those earning up to 12 Lakh Rupees do not pay anything in Income Tax. For the salaried, it becomes 12.75 Lakhs including the Standard Deduction.

But if you earn anything above 12 Lakh Rupees, this no tax up to 12 Lakh Rupees is not applicable.

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The Basic Exemption limit is Four Lakh Rupees for such persons and the rest of the income above Four Lakh Rupees is Taxable.

The Basic Exemption Limit is only 3.5 Lakh Rupees only and it is now increased to Four Lakhs.

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And then, smaller slabs are increased.

Earlier, income above 15 Lakh Rupees attracts 30% Tax but in this new Tax Slabs, 30% Tax is applicable only if your income is above 24 Lakhs.

Here is an illustration of the Tax Saving under the new slabs right from the Budget Document. Check it out to understand more.