TAX AXE BUDGET PRODS PEOPLE TO SPEND MORE

A country is not just its soil, a country is its people-a famous line of Telugu poet and playwright Gurajada Appa Rao quoted by Finance Minister Nirmala Sitharaman in her speechsums up the focus of Budget 2025-26.

- DIPAK MONDAL

The middle class was the central focus of the Budget, which heralded a big income tax cut the demand for which calls came from all corners-salaried people, industrialists, and economists.

All of them were unanimous in their call for a relief to the common man, the absence of which was writ large in all macro and micro indicators.

The FM was cheered by all the members of Parliament when she announced the personal tax proposals, which include a major overhaul in tax slabs and an increase in the threshold up to which no tax is levied on income. The income threshold was increased from ₹7 lakh to 12 lakh, virtually making any income up to ₹12.75 lakh tax free. The new tax slab significantly reduces the tax burden on all with the highest tax rate of 30% applicable on income over 24 lakh from 18 lakh earlier.