Budget 2025: Key Highlights and Implications No Tax for ₹12 LPA – Is It Really Tax-Free? As per Finance Minister Nirmala Sitharaman’s speech, individuals earning up to ₹12 lakh per annum (LPA) are said to be exempt from income tax. However, let’s break it down: ₹0 – ₹4 LPA → No tax ₹4 – ₹8 LPA → 5% of ₹4 LPA = ₹20,000 ₹8 – ₹12 LPA → 10% of ₹4 LPA = ₹40,000 Total Tax Payable → ₹60,000 If you are employed, this amount will be deducted as TDS (Tax Deducted at Source) from your salary. While you will get a refund when filing your income tax return, the 4% CESS on ₹60,000 (i.e., ₹2,400) is non-refundable. Thus, while the government promotes it as a "tax-free budget," you still bear the burden of the 4% CESS. How Will This Budget Boost the Economy? With increased disposable income, the middle class and young professionals will likely spend more on consumer-driven sectors such as clothing, household essentials, and food. For example, individuals from Tier-2 and Tier-3 citie...