Finance Minister Nirmala Sitharaman announced no income tax for those earning upto ₹12 lakh in Union Budget 2025-26. In 2005, the tax exemption limit stood at ₹1 lakh and in 2012 it was raised to ₹2 lakh. It was raised to ₹2.5 lakh in 2015 and it stood at ₹5 lakh in 2019 before increasing to ₹7 lakh in 2023.