Healing wounds from previous governments: PM Modi on tax relief in Union Budget

FM Sitharaman (Left), PM Modi (Right)

Prime Minister Narendra Modi on February 4 spoke about the recent changes to the new tax regime as announced in Budget 2025. During his reply to the Motion of Thanks on the President's Address in Lok Sabha, the Prime Minister said that his government since 2014 has been healing the wounds from the previous governments.

Finance Minister Nirmala Sitharaman on February 1 presented the Union Budget 2025-2026. She proposed to make annual income of up to Rs 12 lakh tax free under the new tax regime, in a move to provide relief to the salaried taxpayers. Further with a standard deduction of Rs 75,000 in place, the tax-free income limit extends to Rs 12.75 lakh.

"In the last 10 years, we have increased the savings of the middle class by reducing income tax. Before 2014, the lives of our countrymen were trembled by the kind of bombs and bullets (of taxes) that were fired at the taxpayers. We slowly continued to heal those wounds," the Prime Minister said.

"In 2013-2014, only income of up to Rs 2 lakh per annum had no tax liability. Today, income up to Rs 12 lakh is completely free of income tax. In the middle years as well, in 2014, 2017 and 2019, we continued to do the same. The wounds continued to heal. Only the bandage was left. Now, we have done that do," he added.

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PM Narendra Modi further said that his government however is 40 to 50 years late in doing what should have been done decades ago by the previous governments. “Since 2014, when the people gave us the opportunity to serve, we have focused on youth aspirations, creating more opportunities and opening multiple sectors. As a result, India's youth are now showcasing their potential on a global stage, he added.