In her budget speech on Saturday, Nirmala Sitharaman announced that no income tax would be payable up to an income of ₹12 lakh annually under the new regime. Finance minister Nirmala Sitharaman on Sunday said that Prime Minister Narendra Modi was fully behind the idea of cutting taxes, but it took time to convince the bureaucrats.
“…The PM was very clear that he wants to do something. It is for ministry to have had the comfort level and then go with the proposal. So, the more work that was needed, was needed for convincing the board that efficiency in collection and honest taxpayers’ voice… all this was work here in the ministry, not so much for the PM…” Nirmala Sitharaman
She said that, like Prime Minister Narendra Modi, his government has always listened to the voices of people from different sectors.
“…He (PM Modi) meets them, interacts with them, gets their inputs… just as he would also talk with the most deprived sections or let’s say the tribals, particularly the vulnerable tribal groups… just as Rashtrapati ji was very keen on addressing their problems, PM also listens to all sections… So, I am very happy to be part of this government, which literally hears the voice and responds.”
Income tax change in Union Budget 2025
In the Union Budget 2025-26 presented on Saturday, Nirmala Sitharaman announced that no income tax would be payable up to income of ₹12 lakh annually.
“To taxpayers up to ₹12 lakh of normal income (other than special rate income such as capital gains) tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them,” Sitharaman said in the Parliament. Her announcement, a big relief to the middle class, was met by a loud thumping of the desks by the treasury benches led by PM Narendra Modi.
Later on Saturday, Prime Minister Narendra Modi hailed the budget presented by Sitharaman as a “force multiplier.” In a video address, PM Modi said the budget reflects the aspirations of 1.4 billion Indians. “Usually, the focus of the budget is on how the government treasury will be filled. But this budget is exactly the opposite. How will this budget fill the pockets of the citizens, increase their savings and how will they become development partners… this budget lays a very strong foundation for it…” he said.
