All eyes are currently on the Union Budget 2025. People are waiting for what the government decides in this upcoming budget. Especially those who pay taxes to the government. There’s some exciting news about the tax situation! The government is looking into offering income tax relief for the middle class, and we might hear more about it in the upcoming general budget set for February 1. This info comes from the Economic Times, which cited Reuters. It seems the plan is to help those making up to 1.5 million rupees a year.
The government aims to ease the tax burden on the middle class while also trying to stimulate spending during these tough economic times. If they go ahead with this relief, it could really help out millions of taxpayers.
As for how much relief might be on the table, that’s still a mystery. There’s no word yet on the specifics of any deductions for those earning up to 1.5 million rupees. Sources say that no final decision has been made, but we should get clarity in the budget announcement on February 1.
Right now, taxpayers are facing a hefty tax load. There are two income tax systems available: the old one and the new one that started in 2020. The new system doesn’t offer any deductions for things like HRA. Under this system, income between 300,000 and 1.5 million rupees is taxed at rates from 5 to 20 percent, and anything above that is taxed at 30 percent.
