01 February,2025 10:16 PM IST | Mumbai | mid-day online correspondent
Nirmala Sitharaman. Pic/PTI
The Modi 3.0 government's first full Budget 2025 was on Saturday presented by Finance Minister Nirmala Sitharaman who announced relief in taxes for middle class.
Sitharaman announced significant income tax cuts for the middle class.
She announced that individuals earning up to Rs 12 lakh in a year will not have to pay any taxes after she raised the exemption threshold from Rs 7 lakh. An additional Rs 75,000 standard deduction is available for the salaried class.
Sitharaman on February 1, presented her eighth budget.
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She also altered tax slabs for people earning above this threshold to help save up to Rs 1.1 lakh in taxes for those with income up to Rs 25 lakh in a year.
The raising of the rebate leads to 1 crore people not having to pay any tax, she said.
The overall tax slab regig is now likely to benefit 6.3 crore people, or more than 80 per cent of taxpayers.
Following her announcement, different industry experts welcomed the government's decision for the income tax payers.
JSW Group Chairman and Managing Director Sajjan Jindal said this Budget provides more money in the hands of the middle class that will help boost consumption.
"A change in tax slabs is a welcome step. The government has maintained its thrust on capex though the spend of Rs 11.2 lakh crore is lower than a spending of around Rs 13 lakh crore that I was hoping for, based on the past trend. But still, capex spend is at a robust level and will give a boost to the core sectors," he said, according to the PTI.
Wipro Ltd CFO Aparna Iyer said the budget prioritises economic progress by placing a strong emphasis on tax reforms, fostering innovation, and skills development, without losing sight of the fiscal deficit target.
Leading airconditioner and appliances maker and Tata group firm Voltas said Budget 2025-26 will provide an impetus for growth across sectors. Moreover, "the proposed taxation reforms will strengthen the purchasing power of the middle class, enhancing financial flexibility and driving consumer demand," said Voltas MD & CEO Pradeep Bakshi, as per the PTI.
BSH Home Appliances India MD and CEO Saif Khan said the proposed tax relief for the middle class will boost disposable income, driving consumer demand across various sectors, including home appliances.
"This optimism will not only enhance consumer aspirations but also propel growth in the premium product market," he said, reported the PTI.
Water purifier maker Kent RO said, "The revised income tax slab, with zero income tax liability for those with annual income up to Rs 12 lakh, will increase disposable income and drive consumption. He also welcomed the government's initiatives to boost exports, manufacturing, and MSME growth."
Meanwhile, the Government employees' unions also welcomed the Centre's proposal to exempt Rs 12 lakh annual income from income tax ambit in the Union Budget for 2025-26 and hoped that the "big" reform will yield positive results.
"We whole-heartedly welcome the proposal to exempt Rs 12 lakh income from tax net. It is really a big reform and a majority of government employees will benefit from it," said Ashutosh Misra, general secretary of the Central Secretariat Service (CSS) Forum, as per the PTI.
The Forum represents officers of the central secretariat service, who form the backbone of the central secretariat working.
It also hoped that the unprecedented reforms would be reflected in the recommendation of the 8th Pay Commission announced by the government recently.
(with PTI inputs)
