Govt to rationalise TDS, No income tax up to Rs12 lakh

Finance Minister Nirmala Sitharaman on Saturday announced rationalisation of TDS (Tax Deduction at Source) regime to ease compliance burden. Presenting the Budget for 2025-26, she said tax proposals are guided by income tax reforms for middle class, TDS rationalisation, and easing compliance burden. Over the past 10 years, government has implemented several reforms for convenience of taxpayers, she said.Zero income tax till Rs 12 lakh under new tax regime. As per proposals-Zero tax liability for individuals with income in the tax bracket of less than 2.5 lakh rupees. New Tax Slabs-
0-4 Lac: Nil
4-8 Lac: 5%
8-12 Lac: 10%
12-16 Lac: 15%
16-20 Lac: 20%
20-24 Lac: 25%
24 Lac onwards: 30%
“I reaffirm the commitment of the tax department to ‘Trust First and Scrutinise Later’. I propose to introduce a new Income Tax Bill next week,” she said. Sitharaman said, new structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment.