New Delhi ,December 27, 2024: In a move aimed at easing the financial burden on the middle class, the Indian government is considering a reduction in income tax rates for individuals earning up to ₹15 lakh annually in the upcoming Union Budget 2025-26. This proposal is expected to stimulate consumption and provide much-needed relief amidst ongoing economic challenges.
Currently, individuals with an annual income between ₹3 lakh and ₹15 lakh are taxed at rates ranging from 5% to 20%, while those earning above ₹15 lakh are taxed at a higher rate of 30%. The proposed changes would likely involve lowering these tax brackets, thus increasing disposable income for taxpayers.
If approved, this initiative is set to benefit millions of people, particularly urban residents who are grappling with high living costs. By reducing the tax burden, the government hopes to encourage more spending, which could give a boost to economic growth.
The final decision on these tax changes will be unveiled during the Union Budget presentation on February 1, 2025. However, the details of the proposed tax adjustments are still under discussion.
