In Budget 2025, Finance Minister Nirmala Sitharaman unveiled significant income tax savings, giving taxpayers more funds and introducing modifications to the way they compute their obligations. A noteworthy point is that individuals with earnings up to Rs 12 lakh are exempt from paying income tax in the updated taxation system. During her speech, the Finance Minister announced that individuals earning up to Rs 12 lakh will be exempt from paying taxes. Taking into account the standard deduction of Rs 75,000, the effective tax-free threshold is raised to Rs 12.75 lakh. How much tax do I have to pay? Calculate now According to the Finance Bill, 2025, on the Central Board of Direct Taxes (CBDT) website, income taxed at special rates is not considered in the rebate calculation.