In the Union Budget presented on 1 February 2025, what was the new income threshold up to which individuals are exempted from paying income tax under the new regime?​

Correct option is D

The correct answer is: (D) ₹12 lakh

Explanation:

• In the Union Budget 2025‑26 (presented on 1 February 2025), the government raised the tax-exemption threshold under the new tax regime to ₹12 lakh—meaning individuals earning up to this amount would pay zero income tax .

Information Booster:

• For salaried taxpayers, an additional standard deduction of ₹75,000 effectively makes the zero-tax limit ₹12.75 lakh .

• The new regime’s basic exemption slab has been simplified to support middle-income earners, now starting at ₹4 lakh, with 0% tax up to ₹12 lakh .

• Budget projections indicate approximately 10 million more taxpayers will benefit from this change .

• This move aims to boost consumption and savings among the middle class .

• It also aligns the rebate limit under Section 87A with the new threshold to ensure seamless tax refunds.