00:00Finance Minister Nirmala Sitharaman has presented her 8th budget in the parliament today.
00:07And Finance Minister Nirmala Sitharaman has announced a big relief in income tax.
00:11Presenting the annual budget of 2025-26, the Finance Minister has also announced a new tax slab.
00:18According to this announcement, no income tax will have to be paid on an annual income of up to 12 lakhs in the new tax regime.
00:24And according to the information, the middle class is going to benefit the most from this new tax.
00:30The standard deduction for the salary class has been kept at Rs. 75,000.
00:34So, if we look at it, the income up to Rs. 12,75,000 of the salary class will be tax-free.
00:41That is, the employee's annual income is Rs. 12,75,000, they will not have to pay any tax.
00:48Now, the first thing to understand in this case is how the tax on you will be applied.
00:54Look, in his 75-minute budget speech, he has announced a new tax rate at the very end.
01:00And with this announcement, the MPs present in the parliament saw a smile on their faces.
01:07And everyone applauded and welcomed this announcement by the Minister.
01:11However, the Finance Minister did not mention any old tax regime in his budget speech.
01:19If a person's annual income is more than Rs. 12 lakhs, then he will have to pay tax according to the income tax slab.
01:26In the state of the salary class, this limit is Rs. 12,75,000.
01:32And as soon as this limit is exceeded, they will come under the tax circle.
01:36They will have to pay income tax according to the slab.
01:39This does not mean that if your income is Rs. 15 lakhs, then the amount left after Rs. 12,75,000, Rs. 2,25,000, you will have to pay tax on it.
01:50No, for this, the tax slabs that have been defined, you will have to pay tax according to them.
01:56For example, if a person's annual income is Rs. 13 lakhs, then because he has exceeded this limit, he will have to pay tax.
02:04Now understand how the tax will be applied on you.
02:07You can see on the screen that if the income is more than Rs. 12 lakhs, then you will have to pay tax at this rate.
02:15This is talking about the new tax regime.
02:18If your income is Rs. 0 to 4 lakhs, then NIL.
02:21If it is Rs. 4 to 8 lakhs, then 5%.
02:23If it is Rs. 8 to 12 lakhs, then 10%.
02:25If it is Rs. 12 to 16 lakhs, then 15%.
02:27If it is Rs. 16 to 20 lakhs, then 20%.
02:29If it is Rs. 20 to 24 lakhs, then 25%.
02:31If it is more than Rs. 24 lakhs, then 30%.
02:33If you come in the range of less than Rs. 12 lakhs or Rs. 12,75,000, then you do not have to pay tax.
02:43But if your income is more than Rs. 12,75,000, then you will have to pay tax according to these slabs.
02:52Let's understand this through an example so that it becomes very easy for you.
02:57Someone's income is Rs. 13 lakhs.
02:59Because there is no tax on Rs. 4 lakhs, you do not have to pay tax on this slab.
03:04In the range of Rs. 4 to 8 lakhs, you have to pay 5% tax.
03:07According to 5%, Rs. 4 lakhs is taxed at Rs. 20,000.
03:11Then the tax rate of Rs. 8 lakhs to Rs. 12 lakhs is 10%.
03:15In this bracket, Rs. 4 lakhs is taxed at Rs. 10% at Rs. 40,000.
03:20Since this person's annual income is Rs. 13 lakhs, the remaining Rs. 1 lakh is taxed at Rs. 15,000 at 15%.
03:29That is, the tax rate of this person is Rs. 20,000 plus Rs. 40,000 plus Rs. 15,000, i.e. Rs. 75,000.
03:36Finance Minister Nirmala Sitharaman said in her budget speech that the Modi government has continuously given relief to people in income tax.
03:44In this regard, changes have also been made in the income tax slab.
03:48If we look at the figures, let's see how the tax rate has decreased.
03:53In 2014, there was no tax on the annual income of Rs. 2.5 lakhs.
03:57In 2019, the annual income of Rs. 5 lakhs was tax-free.
04:01In 2023, the income of Rs. 7 lakhs was tax-free.
04:04And now in 2025, the income of Rs. 12 lakhs has been tax-free.
04:09What was the limit of tax in the past?
04:11According to the budget of 2024, there was no tax on the income of Rs. 3 lakhs in the tax slab.
04:17There was a 5% tax on the annual income of Rs. 3 to 7 lakhs.
04:21At the same time, there was a 10% income tax on the annual income of Rs. 7 to 10 lakhs.
04:26There was a 15% tax on the income of Rs. 10 to 12 lakhs.
04:28And after that, there was a 20% tax on the income of Rs. 12 to 15 lakhs.
04:33And if your income is above Rs. 15 lakhs, then there was a 30% tax on it.
04:37So, a big relief has been given to the middle class.
04:41Because the way our inflation is increasing, which is the current situation of the Indian economy,
04:47there was a need to redefine the middle class.
04:50And today's middle class comes in the income slab of Rs. 12 to 15 lakhs.
04:54So, a big relief is being given in this.
04:57What do you think?
04:58How did you like the step of the Modi government to tax-free the income of Rs. 12 lakhs?
05:03Do tell us by commenting.
05:04And I hope you would have understood in a very easy language how you have to pay taxes.
05:10That's all for this video.
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