ECONOMY TO GET FILLIP WITH TAX CUT

FOR a middle-class that is struggling with tight cash flows and higher taxes, the finance minister has come with a bunch of measures that put more money into their pockets.

- Radhika Gunta

The introduction of enhanced slabs, lower tax rates, higher threshold for TDS (tax deduction at source) and TCS (tax collected at source) transaction and measures to cut complexity around KYC compliance are set to bring considerable cheer to a large section of the salaried and even retired population.

Higher surplus for the salaried

In the new tax regime, the big takeaway is a major reworking of the tax slabs, with focus on the middleincome group from FY26. A salaried person will have to pay taxes only if she earns over 12.75 lakh, a steep rise from ₹7.75 lakh levels currently. This is a rebate increase and not the starting slab. For incomes over ₹12.75 lakh, your taxes will start from 4 lakh onwards.