Union Budget 2025: How much money has FM Nirmala Sitharaman put in your pocket?

NEW DELHI: Finance minister Nirmala Sitharaman on Saturday gave a big bonanza to the salaried people as she announced income tax exemption for individuals earning up to Rs 12 lakh annually.
"I am now happy to announce that there will be no income tax payable up to income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime," the finance minister said.
"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," Sitharaman said in her Budget speech.
Here's how you will save tax:
Source: Ministry of finance
For salaried individuals, the tax-free limit extends to Rs 12.75 lakh annually, considering the standard deduction of Rs 75,000 available to them.
Under the new tax structure, individuals earning Rs 12 lakh annually will receive complete tax exemption, resulting in a Rs 80,000 benefit compared to the existing tax rates.
The tax implications show that those earning Rs 16 lakh will save Rs 50,000, with an effective tax rate of 7.5%.
For earnings of Rs 18 lakh, the benefit amounts to Rs 70,000, with an effective rate of 8.8%.
For annual income of Rs 20 lakh, taxpayers will save Rs 90,000, resulting in an effective rate of 10%. Those earning more than Rs 24 lakh will benefit by Rs 1,10,000, with an effective rate of 13.2%.
Even at Rs 50 lakh income level, individuals will receive a Rs 1,10,000 benefit, with an effective rate of 21.6%.

New I-T bill in Parliament next week
Next week, the government will present a new Income Tax bill, as announced by finance minister Nirmala Sitharaman.
The forthcoming Income Tax bill, scheduled for parliamentary introduction next week, aims to advance the "trust first, scrutinise later" approach.
This legislation intends to streamline the existing Income Tax (I-T) regulations and enhance their accessibility and understanding.
Pursuant to the Budget announcement by Sitharaman for a comprehensive review of the Income-tax Act, 1961, the CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act.