Finance Minister Nirmala Sitharaman spoke about helping middle-class taxpayers. She knows they face challenges and wants to give them more money without hurting the government’s budget.
In an interview, she said, “I want to help the middle class more, but there are limits.” She mentioned that the standard deduction for salaried people has increased from ₹50,000 to ₹75,000. This change, along with new tax rates, is meant to help both middle- and higher-income earners by giving them some tax relief.
The government is also thinking about reducing taxes for people earning up to ₹15 lakh a year. This could help many urban taxpayers who deal with high living costs. The idea is to encourage spending during tough economic times.
Currently, under the 2020 tax system, incomes between ₹3 lakh and ₹15 lakh are taxed at rates from 5% to 20%, while higher incomes are taxed at 30%. The proposed changes would offer relief to those using this system, which doesn’t include exemptions like housing rent.
Besides tax changes, Sitharaman talked about plans for education and affordable housing. She mentioned subsidized interest on student loans up to ₹10 lakh and benefits for affordable housing as ways to support families.
These measures come at a time when India’s economic growth has slowed down, partly due to high food prices affecting demand for goods and vehicles. The number of taxpayers earning between ₹50 lakh and ₹1 crore has grown significantly over the past decade, showing the financial strain on middle- and high-income groups.
With the upcoming budget, the government aims to address taxpayer concerns, boost spending, and tackle economic challenges with specific actions.
