From income tax rate cuts to new tax slabs, Budget 2025 fulfilled many demands of the middle class. Income Tax rate cut In a surprise announcement, Sitharaman exempted income up to ₹12 lakh from tax, a booster for the middle class. ₹0 – ₹4 lakh: No Tax₹4 lakh – ₹8 lakh: 5%₹8 lakh – ₹12 lakh: 10%₹12 lakh – ₹16 lakh: 15%₹16 lakh – ₹20 lakh: 20%₹20 lakh – ₹24 lakh" 25%₹24 lakh and above: 30%3. Also Read | Income tax rules due soon, FY27 Budget to see minimal tax law changesBudget 2026: Can we expect more income tax rate cuts? After Budget 2025, taxpayers are now looking to Budget 2026 for more relief on the income tax rules.

Source: Mint January 16, 2026 13:12 UTC