Prime Minister Narendra Modi, at the start of Parliament’s Budget session today, hinted at potential income tax relief for the middle class in Budget 2025. He said, “I pray that Goddess Lakshmi showers blessings on the poor and middle class.” This statement has sparked speculation that Finance Minister Nirmala Sitharaman’s Budget speech on February 1, 2025, may include measures to ease the tax burden on the middle class.
PM Modi also emphasized that the upcoming Budget would provide new energy and confidence towards making India a “Viksit Bharat” (Developed India). His mention of the middle class has led many to believe that the government could announce changes to income tax slabs and increase the standard deduction, which would provide more disposable income for salaried taxpayers.
Economic experts have long been calling for rationalization of the income tax system and a revision of tax slabs to support the middle class. The final details will be revealed when Finance Minister Nirmala Sitharaman presents the Budget tomorrow.
