Budget proposal of zero tax up to Rs 12 lakh annual income visionary step: Odisha CM

Bhubaneswar: Odisha Chief Minister Mohan Charan Majhi on Saturday said the "zero income tax" up to Rs 12 lakh per annum, as proposed in the Union Budget 2025-26, is a visionary step and will empower citizens and strengthen the economy.

The Budget gave a relief to the middle class with regard to tax incidence and rejigged slabs.

Taking to X, Majhi said, “A heartfelt thank you to Hon'ble PM Shri @narendramodi Ji and Hon'ble Finance Minister @nsitharaman ji for this transformative initiative of Zero Income Tax till Rs 12 Lakh under the New Tax Regime. This visionary step empowers citizens, strengthens the economy, and paves the way for brighter financial opportunities for all.”

Union Finance Minister Nirmala Sitharaman announced that annual income of up to Rs 12 lakh will be exempt from I-T under the new income tax regime.

For salaried taxpayers, this income threshold will be Rs 12.75 lakh after taking into account standard deduction.

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," Sitharaman said in her Budget speech.