Income Tax Slabs LIVE: Middle Class Awaits Tax Relief, Affordable Housing Ahead of Budget 2025

Income Tax Slabs LIVE: The middle class was hoping for a favorable change in the income tax slabs ahead of the Union Budget 2025-26, and they were not disappointed.

The government has established new tax slabs to significantly lower middle-class taxes and give them more money, increasing household consumption, savings, and investment. The new structure will increase disposable incomes, boosting household consumption, savings, and investment, Finance Minister Nirmala Sitharaman said in her annual budget speech.

Presenting her eighth consecutive budget in the Lok Sabha, Sitharaman outlined a forward-looking plan that includes raising the foreign direct investment (FDI) limit in the insurance sector, simplifying tax laws, and reducing duties on intermediaries. At the same time, she also increased fiscal support for welfare programs.

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Sitharaman maintained the government’s commitment to fiscal consolidation, with projections showing the fiscal deficit narrowing to 4.4% of GDP by the 2025-26 financial year. For the current fiscal year, the deficit is expected to reach 4.8% of GDP. To close the gap in the fiscal deficit, the government plans to raise Rs 11.54 lakh crore in net market resources for the upcoming fiscal year.

On February 1, Finance Minister Nirmala Sitharaman’s Union Budget 2025 introduced a series of thoughtful tax relief measures aimed at easing the financial burden on senior citizens.

The Union Budget 2025-26 revealed an extension of the time limit for filing updated returns (ITR-U) from the current 24 months to 48 months.

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The Finance Minister said that “nearly 90 lakh taxpayers voluntarily updated their incomes by paying additional tax” and, building on this trust, the Centre proposed extending the deadline for filing updated returns for any assessment year.

In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—

Upto Rs. 3,00,000 - Nil

From Rs. 3,00,001 to Rs.5,00,000 - 5%

From Rs. 5,00,001 to Rs.10,00,000 - 20%

Above Rs. 10,00,000 - 30%

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