Union Finance Minister Nirmala Sitharaman is anticipated to unveil significant revisions to the income tax slabs for the new tax regime in the 2025-26 Union Budget, which will be presented on February 1. These revisions aim to benefit salaried individuals earning up to Rs 20 lakh annually.
Two major options are reportedly under consideration by the government. One proposal is to make annual income up to Rs 10 lakh entirely tax-free, offering considerable relief to lower and middle-income earners. Another option being explored is the introduction of a new 25% income tax slab for individuals earning between Rs 15 lakh and Rs 20 lakh annually. Under the current tax regime, income exceeding Rs 15 lakh is subject to the highest tax rate of 30%.
This move is expected to ease the tax burden for many salaried taxpayers, aligning with the government’s aim to provide a more progressive and equitable tax structure.
