Tax Reforms for the Middle Class: How You Can Save More in 2025
Tax Reforms for the Middle Class: How You Can Save More in 2025 The new tax slabs introduced in the 2025 Union Budget have a significant impact on the middle class , offering them both tax relief and more flexibility . Let's break down how these changes specifically affect the middle-income earners: Key Changes for the Middle Class: 1. Increase in the Tax-Free Income Range : o The old tax slab had ₹3,00,000 as the basic exemption limit, meaning you only paid tax if your income exceeded ₹3,00,000. o The new tax slab starts the tax-free limit at ₹4,00,000 , meaning those with annual incomes of up to ₹4,00,000 will not pay any income tax. o This change gives immediate tax relief to those earning around ₹4,00,000 or below, which is typically a significant portion of the middle class. 2. Progressive Reductions in Tax Rates for Lower Slabs : o The old tax slabs had highe...