The government of India may reduce income tax for people earning up to ₹15 lakh per year in the 2025 Union Budget. Reports and rumors are floating on Social Media.
If implemented, it will give a big relief to the middle class, or many taxpayers in the country. This step will also increase the consumption and purchasing power of common citizens.
Currently, if you are earning ₹3 lakh to ₹15 lakh, then the income tax is between 5% to 20%. India is the 5th largest economy in the world, but the growth is now declining. This big tax cut will increase consumption and boost Indian economy.
The main beneficiaries will be the salaried class of citizens, and it will help them to manage their expenses. The tax cuts could be implemented in the 2025-26 Union Budget on 1 February 2025, Reuters, citing two government sources.
There are two tax regimes in India: the old tax regime, which allows deductions and exemptions, and the New Tax Regime, which provides lower tax rates but no deductions.
New Tax Regime
- 0-3 L – 0%
- 3-7 L – 5%
- 7-10 L – 10 %
- 10-12 L – 15 %
- 12-15 L – 20%
- Above 15 L – 30%
The middle class and all taxpayers have been waiting for this decision for so long, and it may be possible in the Upcoming Budget.
Also Read – 8 Main Points Of Budget 2024 – New Tax Regime, LTCG, STCG
Overall, Nothing is confirmed; it may be different; these are just media reports and speculations.
