BENGALURU, 1 FEB

In a welcome relief for the middle class, Finance Minister Nirmala Sitharaman revealed in the Union Budget 2025-26 that individuals earning up to Rs 12 lakh annually will now be exempt from income tax under the new tax regime. This increase from the previous threshold of Rs 7 lakh aims to enhance disposable income amidst concerns over declining consumption and slowing GDP growth.  

The announcement has received a warm response from young professionals. Shilpa Sharma, a 25-year-old marketing executive in Bengaluru, remarked, "This is a great step for youngsters like me who have just started their careers. I can save more at an early stage."  

In addition, the budget raised the standard deduction for salaried individuals from Rs 50,000 to Rs 75,000, further alleviating taxable earnings. Experts believe these measures could stimulate private investments, bolster consumption, and create new jobs.  

While many celebrated this "big relief" on social media, some argued for further reforms. Vishnu Sharma, a private sector employee, expressed, "For the first time, the middle class gets some respite, but there’s still a gap between taxes paid and the facilities we receive."  

As the government aims for economic growth, questions linger over whether this tax relief will effectively revive demand and address middle-class expectations.