New Delhi: Managing the finances of a resource-hungry nation, Finance Minister Nirmala Sitharaman often finds it challenging to meet middle-class expectations for income tax relief in every budget. However, analysts suggest that taxpayers may receive some relief in Budget 2025, which she is set to present in just a few hours. The Narendra Modi government is expected to focus on boosting consumption to revive a slowing economy.
“I pray to Goddess Lakshmi that the poor and middle-class sections of the country are blessed by her,” Prime Minister Narendra Modi said cryptically just a day before the budget announcement. Deloitte India economist Rumki Majumdar commented: “Most likely, they will look at the Rs 7-10 lakh income slab, where they could introduce more exemptions. That is a possibility.” She further explained, “It’s the middle class, which is kind of getting impacted, and a large proportion actually falls, within (Rs) 7-10 (lakh bracket). So, it probably makes sense to have some exemptions here and give them some relief. That will definitely boost consumption.”
Some Income Tax Relief Possible
Barnik Chitran Maitra, managing partner of Chrysalis Capital, also believes some tax relief is likely, given the push for growth through higher consumption. “People are making two types of demands. One is to increase the slab rate for zero taxes – to move it to Rs 7.5 lakh. Two, increase the exemptions so that people who are earning less than Rs 10 lakh a year get some tax relief,” he said. “I think there may be some kind of tax relief but not as high as people expect. Some temporary measures may be considered and put in place.”
Himadri Mukhopadhyay, secretary of the Income Tax Bar Association, Calcutta, echoed similar sentiments, suggesting that tax relief might be on the cards this year due to macroeconomic conditions. “But whatever relief might come the way of the common people, I think, would be effective only in the new tax regime, which the government wants more and more people to adopt. Already more than 72 per cent of the taxpayers have switched to this mode,” he noted.
Current Income Tax Slabs and Rates (New Regime)
| Total Income (Rs) | Income Tax Rate (%) |
Up To Rs 3,00,000 | NIL |
Rs 3,00,001 – 7,00,000 | 5% |
Rs 7,00,001 – 10,00,000 | 10% |
Rs 10,00,001 -12,00,000 | 15% |
Rs 12,00,001 – 15,00,000 | 20% |
Above Rs 15,00,000 | 30% |
Overall, while significant tax relief may not be on the horizon, some adjustments—particularly for middle-class taxpayers—seem likely as the government seeks to boost consumption and economic growth. The final measures will become clear when Finance Minister Nirmala Sitharaman presents Budget 2025 in just a few hours.
With Budget 2025 just hours away, will the Modi government announce income tax relief for the middle class? Experts analyse possible slab changes and exemptions. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
