New Delhi, Feb 1 (IANS): Union Finance Minister Nirmala Sitharaman, in her first post-Budget press conference, said that the revision in tax slabs as announced in the Union Budget 2025-26 will leave 'enough money in the hands' of taxpayers, adding that about 1 crore taxpayers will be directly benefitted from the extended rebates and exemptions, under the New Tax regime.
Speaking to the media, FM Sitharaman said: "One crore more people will benefit due to the increased tax exemption limit from Rs 7 lakh to Rs 12 lakh. They will have to pay no income tax."
As per the new slabs, proposed in Budget 2025-26, those with an income of up to Rs 12 lakh will have to pay no income tax, marking a decisive change in the tax structure.
She also reiterated Prime Minister Narendra Modi-led government's commitment to the Viksit Bharat goal and outlined the initiatives and steps being undertaken to propel the nation on that path.
Further, drawing a comparison between the Budget of the UPA era in 2014 and this year’s Budget, she said that the amendments in tax slab rates have busted the narrative of ‘need for more money in people’s pockets’.
Sharing details of the tax slabs and benefits during the UPA era and today, she said: "For somebody earning nearly Rs 8 lakh in 2014, nearly 1 lakh more money will be in their pockets now because of the changes. Rs 1 lakh income tax in 2014 has become zero tax in 2025. For those earning Rs 12 lakh, Rs 2 more money would be into the pockets of taxpayers."
She further told mediapersons: "Across the board, everybody is benefiting because the income tax rates have been brought down. In 2014, the income tax rate for those earning Rs 24 lakh/year, the income tax was about 5.6 lakh, now it is only 3 lakh which in turn means that Rs 2.6 lakh more money into their hands."
Drawing a comparison between the prevailing tax rates and the proposed new ones in FY25-26, she said that those who are earning Rs 8 lakh will have Rs 30,000 more money into their pockets because their tax liability has been brought to zero.
She also sought to dismiss apprehensions about reduced capex investments.
The Finance Minister stated unequivocally that there has been no reduction in public spending on the capital infrastructure and the resolve to enhance it has the full backing of the government.