Synopsis
The Union Budget 2025 has introduced new tax slabs that provide major relief to the Indian middle class. Business leaders commend the budget as a strategic initiative that supports economic growth and sustains various sectors, including agriculture and small businesses.Key Takeaways
- New tax slabs offer substantial relief to the middle class.
- Individuals earning up to Rs 12 lakh are exempt from income tax.
- Business leaders view the budget as a strategic move for economic growth.
- Enhanced disposable income will boost consumption and industrial production.
- Senior citizens benefit from an increased tax deduction limit.
New Delhi, Feb 1 (NationPress) The recently introduced tax brackets in the Union Budget 2025 have provided substantial relief to the Indian middle class, while the business sector has praised this initiative as a tactical move that will stimulate economic progress.
The updated tax framework, revealed by Finance Minister Nirmala Sitharaman, guarantees that individuals earning up to Rs 12 lakh annually and salaried individuals with earnings up to Rs 12.75 lakh annually (inclusive of standard deduction) will be exempt from income tax.
Manish Singhal, Secretary General of ASSOCHAM, informed IANS that this year's Budget has effectively balanced various critical sectors.
“There are no grievances concerning this Budget. Typically, people find some aspects beneficial while others might disappoint. However, this time, the overall Budget is positively received. Under the Prime Minister's vision for 'Viksit Bharat' by 2047, the Finance Minister has considered sustainability, agriculture, small enterprises, and other essential sectors,” he stated.
He further underscored that the new taxation model will not only aid the middle class but also positively affect various industries.
“When the middle class has increased disposable income, consumption rises, subsequently boosting industrial production. This will lead to greater private sector investment in CAPEX. The Budget initiates a new positive cycle,” he added.
In a conversation with IANS, ASSOCHAM J&K Development Council Chairman Manik Batra shared analogous perspectives, describing the Budget as “well-organized and considerate.”
He emphasized the importance of the tax adjustments, stating, “The Indian economy is predominantly powered by the middle class, and these new tax brackets will offer a significant uplift. With a standard deduction of Rs 75,000 for salaried individuals, those earning up to Rs 12.75 lakh will be exempt from income tax. This will enhance overall market sentiments.”
Batra also highlighted the extensive economic implications of these adjustments. “With enhanced savings, individuals will be motivated to travel more, shop more, and contribute to the growth of sectors such as tourism and retail. We also anticipate robust provisions for the development of Jammu and Kashmir,” he added.
ASSOCHAM J&K Development Council Co-Chairman Bhupesh Gupta commended the tax reforms, remarking that they surpassed expectations.
“We had anticipated an increase in the exemption limit from Rs 7.5 lakh to Rs 10 lakh, but elevating it to Rs 12 lakh is a significant advantage. This is a well-conceived and remarkable Budget that tremendously benefits the middle class,” he told IANS.
In the new tax framework, the adjusted tax rate structure is Rs 0-4 lakh (zero tax), Rs 4-8 lakh (5 percent), Rs 8-12 lakh (10 percent), Rs 12-16 lakh (15 percent), Rs 16-20 lakh (20 percent), Rs 20-24 lakh (25 percent), and above Rs 24 lakh (30 percent).
“The new tax structure would significantly decrease taxes for the middle class,” announced FM Sitharaman.
While presenting the Union Budget 2025-26, FM Sitharaman mentioned that the tax deduction at source (TDS) rates will be streamlined, and the limit for tax deduction for senior citizens will be raised to Rs 1 lakh.
FM Sitharaman also proposed to extend the time frame to file the updated return from two years to four years.
