New Delhi, Feb. 1 -- Finance minister Nirmala Sitharaman, in Union Budget 2025-26, gave a big relief to taxpayers by making income up to Rs.12 lakh tax-free from Rs.7 lakh earlier.

Factoring in the standard deduction of Rs.75,000 for the salaried class, an income up to Rs.12.75 lakh will be tax-free. This income, however, excludes capital gains, which are taxed at separate short-term and long-term tax rates.

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," Sitharaman in her Budget speech.

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"To tax payers upto Rs.12 lakh of normal income (other than special rate income such as ...