Income Tax 6 September 2026
India’s Direct Tax Buoyancy Hits Over 1% for Third Year
The Union budget for fiscal year 2025‑26 lifts the income‑tax exemption ceiling to ₹12.75 lakh, extending relief for middle‑income earners. This change pushes India's direct tax buoyancy above the 1% mark for the third straight financial year, reflecting a steady rise in tax revenue under the revamped tax regime.
The latest budget for FY 2025‑26 raises the income‑tax exemption limit to ₹12.75 lakh, continuing the trend of higher tax buoyancy. Direct tax buoyancy has climbed above 1% for the third consecutive financial year, signaling stronger revenue collection.
- Exemption ceiling increased from ₹12 lakh to ₹12.75 lakh
- Buoyancy >1% for three years in a row
- Indicates robust fiscal health under the new tax regime
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