Ahead of the Parliament’s Budget session, Prime Minister Narendra Modi invoked goddess Lakshmi during his customary address with a specific mention of the middle class and poor.
Addressing the media outside Parliament, Prime Minister Modi said, “I pray to Goddess Lakshmi to shower the poor, middle class with blessings. It is a matter of great pride that India completed 75 years as a democratic nation.”
He added that "innovation, inclusion and investment will be the basis of India's roadmap for economic activities".
The message, with particular references to middle class and poor, has fuelled expectations that the government may introduce measures with a focus on economic relief, tax benefits and women-centric schemes.
Finance Minister Nirmala Sitharaman, who tabled the Economic Survey 2024-25 today, will present her eighth consecutive Budget in the Parliament on February 1.
The Union Budget is expected to address the challenges of slowing economic growth and provide relief to the middle class burdened by rising prices and stagnant wages.
In the run up to the Budget, anticipation has been building among salaried taxpayers who are hoping for tax relief through reduced rates and higher deductions.
Changes to income tax slabs and rates, if they occur, are expected to be part of the new tax regime, given the government's push for its widespread adoption. Data from the government reveals that 72 per cent of taxpayers have already transitioned to this regime.
According to several reports, major changes to the new tax regime could be in the works, with plans to make income up to Rs 10 lakh tax-exempt and to introduce a new 25 per cent tax slab for earnings ranging from Rs 15 lakh to Rs 20 lakh.
Income tax slabs under new tax regime:
| Income Tax Slabs | Tax Rate |
| 0-Rs 3 lakh | Nil |
| Rs 3 lakh - Rs 7 lakh | 5% |
| Rs 7 lakh - Rs 10 lakh | 10% |
| Rs 10 lakh - Rs 12 lakh | 15% |
| Rs 12 lakh - Rs 15 lakh | 20% |
| Above Rs 15 lakh | 30% |
The focus is now on FM Nirmala Sitharaman’s Budget 2025, with everyone eager to know whether FY 2025-26 will bring a reduction in the income tax burden.
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