Union Finance Minister Nirmala Sitharaman is likely to announce significant changes to income tax slabs under the new tax regime in the 2025-2026 Union Budget on February 1. These could offer substantial relief to salaried taxpayers earning up to Rs 20 lakh annually.
The government is said to be weighing two options: Making annual income up to Rs 10 lakh entirely tax-free or introducing a new 25 per cent tax slab for income between Rs 15 lakh and Rs 20 lakh.
If our Budget allows, we may implement both measures — making income up to Rs 10 lakh tax-free and introducing a 25 per cent slab for income between Rs 15 lakh and Rs 20 lakh.’
