The Union Budget 2025 introduces substantial tax relief for the middle class, marking a significant shift in fiscal policy. Under the new tax regime, individuals with an income up to 12 lakhs are exempt from income tax, offering considerable financial relief. Depending on your income bracket, savings could exceed a lakh. Here's a detailed analysis on how much you could save: -General Overview: The budget stipulates zero tax liability for incomes up to 12 lakhs, though this does not mean the income is entirely tax-exempt. If your income is 12 lakhs or less, you are eligible for a full rebate on your tax liability. For incomes over 12 lakhs, taxation begins from the amount above 4 lakhs. -Tax Slab Changes: The tax slabs have been revised in the new regime, with adjustments aimed at benefiting taxpayers. The structure now provides more favorable tax brackets. -Case Study - ₹12.75 Lakhs: For salaried individuals with an annual income of ₹12.75 lakhs, a standard deduction of ₹75,000 applies. Pre-Budget 2025, the tax liability was ₹83,200. Post-Budget, due to the full rebate for incomes up to 12 lakhs, the liability is now nil. -Case Study - ₹18 Lakhs: With an annual salary of ₹18 lakhs, after the standard deduction, the taxable income stands at ₹17.25 lakhs. The tax liability before the 2025 budget was ₹2,15,800, which has now been reduced to ₹1,50,800, providing a tax benefit of ₹65,000. -Case Study - ₹25 Lakhs: For an income of ₹25 lakhs, tax savings could surpass a lakh. Prior to the budget, the tax was ₹4,34,200; it is now ₹3,19,800, leading to a savings of ₹1,14,400. -Important Note: The tax rebate under this regime applies only to income taxed at standard slab rates, excluding capital gains which are taxed at special rates. If you're interested in calculating your potential tax savings for a specific income level, please feel free to ask. #unionbudget2025 #taxrelief #middleclassbenefit