PM Modi Announces Tax-Free Income Limit Raised, Making Life Easier for Taxpayers!
Tax reforms raised the income tax exemption limit to Rs 12 lakh, simplifying tax processes for Indian citizens.
Prime Minister Narendra Modi on Friday highlighted significant tax reforms aimed at easing the financial burden on Indian citizens. Speaking during the 79th Independence Day address, Modi announced that the government has raised the tax-free income limit to Rs 12 lakh per annum, a move made possible by improved administrative capabilities.
“The government has undertaken reforms to make life easier for citizens. Income tax refund processing, faceless assessments, and raising the tax-free income limit to Rs 12 lakh per annum are all outcomes of these reforms,” Modi said. “No one ever imagined that tax relief on income up to Rs 12 lakh was possible. When a nation's capability increases, its citizens benefit.”
In the 2025-26 Union Budget, the income tax rebate threshold was increased from Rs 7 lakh to Rs 12 lakh. Including the standard deduction, this means that salaried individuals earning up to Rs 12.75 lakh annually will no longer be liable to pay income tax.
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Modi also noted the government’s success in streamlining income tax refunds. The average time to process refunds has dropped drastically from 93 days in 2013 to just 17 days in 2024. The total value of refunds issued has soared 474 percent in the last 11 years, reaching Rs 4.77 lakh crore in 2024-25.
Further, Modi praised the implementation of the faceless assessment system, launched in phases since October 2019, which eliminates the need for taxpayers to visit tax offices. Returns are now selected and scrutinized electronically, reducing human intervention and improving efficiency.
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