New Delhi, Feb 1: As many as 1 crore more people will pay no income tax after the increase in rebate to Rs 12 lakh announced in the Budget for 2025-26, Finance Minister Nirmala Sitharaman said on Saturday. Addressing a post-budget press conference, she said that the move would “put more money in the hands of people”.
In a huge relief for taxpayers, the Finance Minister announced a hike in the tax rebate in the Union Budget. According to the revised structure, individuals with a net taxable income of up to Rs 12 lakh will now pay zero income tax. This is a significant notable increase from the previous threshold of Rs 7 lakh.
Finance Minister Sitharaman also said that the new Income Tax Bill will be presented in Parliament next week and will be referred to a Standing Committee. She also said that “there is no reduction in the public spending on capital expenditure in the Union Budget for 2025-26. We continue to place emphasis on the multiplier effect that capital expenditure done by the government has shown has sustained us. We continue on that, and with all this, our fiscal prudence has been maintained”.
The Finance Minister said that the Union Budget presented earlier in the day says several things about ‘Viksit Bharat’ as it focuses both on rural prosperity and urban development. The Budget also continues to focus on reforms, she added.
She also stated that two amendments would be made to the Atomic Energy Act and to the Civil Liability for Nuclear Damage Act aimed at achieving energy security for the nation. She said pointed out that the Budget had prioritised education and healthcare with more seats being made available in medical colleges across the country.
IANS