PM Modi signalled that there can be a big relief in income tax, which will benefit the middle class
PM Modi signalled: Prime Minister Narendra Modi addressed the media at the start of the budget session. In this, he indicated that the middle class could get a big relief in the budget to be presented on Feb 1. PM Modi also invoked Lakshmi, the goddess of wealth and prosperity, for this.
Will there be relief in income tax?
Finance Minister Nirmala Sitharaman will present the Union Budget on Feb 1, 2024. Just a day before his budget speech, PM Modi has heated up the speculation market by specifically mentioning the middle class. This raises the question of whether Budget 2025 will provide income tax relief to the common man, the need for which has long been felt.
Salaried taxpayers hope that the budget can get relief such as cut in income tax, rate change and reduction in tax burden. Tax experts and economists are also advocating for an increase in standard deductions to rationalise income tax slabs under the new income tax regime and to put more disposable income in the pocket of the middle class.
In which tax system can you get exemption?
The govt. of India is now focussed on the new tax regime. So if there is any relief, it will be found in the new tax system. At the same time, the government may also consider abolishing the old tax regime. According to government data, 72 per cent of taxpayers have adopted the new income tax regime.
Why can you get tax relief?
The Union Budget 2025 comes at a time when GDP growth has come down to a two-year low of 5.4 per cent. This is why the government may cut the income tax rate to boost consumption in the economy. This will save more money in the hands of people, the expenditure of which will boost consumption. Economic experts are also telling the government the same way.
