Modi Hints at Tax Relief Will Budget 2025 Favor the Middle Class?

Delhi - As India's economy slows, all eyes are on the upcoming Union Budget 2025. With GDP growth dipping to a two-year low, middle-class taxpayers are hoping for much-needed relief. Prime Minister Narendra Modi recently invoked the blessings of Goddess Lakshmi for the poor and middle class, sparking speculation that tax benefits could be on the way.  

The government is reportedly considering revisions to income tax slabs and an increase in the standard deduction. This move could put more money in the hands of middle-income earners, helping to boost spending and revive economic growth. Under the current new tax regime, individuals earning up to ₹7 lakh annually receive a full tax rebate. Many expect this threshold to rise to ₹10 lakh, easing the financial strain on millions of taxpayers.  

There is also growing demand for restructuring tax slabs. One proposal suggests that the highest 30 percent tax rate should apply only to those earning above ₹20 lakh per year, which would provide significant relief to a large section of salaried professionals.  

With Budget 2025 set to be announced soon, expectations are high. The middle class, often considered the backbone of the economy, is looking for direct benefits that will improve their financial stability. If income tax rates are reduced or deductions increased, it could lead to higher disposable income and stronger consumer spending. All eyes are now on the Finance Minister to see if these hopes turn into reality.