Nirmala Sitharaman announced an increase in income tax rebate from ₹7 lakh to ₹12 lakh, aimed at reducing tax burdens for ₹1 lakh monthly earners.

While presenting the Union Budget in Parliament on Friday, Sitharaman urged Income Tax department officials to "trust first and scrutinise later."

New Income Tax Slabs in Budget 2025: During her presentation of the Union Budget for 2025-26, Finance Minister Nirmala Sitharaman announced the introduction of a new Income Tax Bill, which aims to simplify and clarify the existing tax framework. “New Income Tax bill will be clear and direct”, FM Sitharaman said.