Big change in middle class tax slab and ₹12.2 lakh crore infra booster:

News India Live, Digital Desk: Finance Minister Nirmala Sitharaman created history by presenting the Union Budget for the financial year 2026-27 in Parliament today. In this important budget of Modi Government 3.0, a new tax slab has been announced, giving big relief to the middle class. To give impetus to the resolve of ‘Developed India’, the government has placed maximum bets on infrastructure and employment generation.

Announcement of new tax slab: Now no tax up to ₹ 4 lakh

The biggest good news has come in this budget for taxpayers. The Finance Minister has increased the exemption limit under the ‘New Tax Regime’. Now no tax will have to be paid on annual income up to ₹ 4 lakh.

New tax slab at a glance:

0 to ₹4 lakh: No Tax (Nil)

₹4 lakh to ₹8 lakh: 5%

₹8 lakh to ₹12 lakh: 10%

₹12 lakh to ₹16 lakh: 15%

₹16 Lakh to ₹20 Lakh: 20%

₹20 lakh to ₹24 lakh: 25%

Above ₹24 lakh: 30%

Record investment on infrastructure: ‘Capex’ of ₹12.2 lakh crore

To boost the country’s economy, the government has increased the capital expenditure (Capex) to ₹12.2 lakh crore. This is about 9% more than last year. A large part of this huge investment will be spent on new roads, bridges and railway projects.

Big focus on high-speed rail and semiconductors

For railways, the government has announced 7 new high-speed corridors, which will connect major economic cities. Moreover, to make India a global hub of chip manufacturing ‘India Semiconductor Mission (ISM) 2.0’ Has been launched, for which ₹40,000 crore has been allocated.

Gift of jobs for MSME and youth

‘SME Growth Fund’ of ₹10,000 crore has been created to strengthen small industries (MSME). Also, it is proposed to constitute a ‘High-Powered Education to Employment’ Committee to promote employment. Gig workers (like delivery boys and freelancers) will also now get the benefits of social security and identity card.

Other important announcements of the budget:

ITR Filing: The deadline for filing revised Income Tax Return (ITR) has been extended to 4 years.

Education and Health: TCS rate on remittances for medical and education abroad reduced from 5% to 2%.

Mineral Corridors: ‘Rare Earth Corridors’ will be built in states like Odisha, Kerala and Tamil Nadu.

Urban Development: ₹1 lakh crore ‘Urban Challenge Fund’ for next generation cities.