Tax Relief for the Middle Class: A Key Move by Modi Government

Prime Minister Narendra Modi highlighted the income tax relief announced for the middle class under the Union Budget 2025. Under the new tax regime, eligible taxpayers with an annual income of up to ₹12 lakh can pay no income tax, subject to applicable conditions and rebate provisions. The announcement was aimed at reducing the tax burden on individuals and increasing their disposable income, giving taxpayers greater financial flexibility.

Salaried employees can benefit from an additional standard deduction, taking the effective no-tax income threshold to ₹12.75 lakh under the new tax regime, subject to the applicable rules. The measure is expected to provide financial relief to middle-class households and leave more money available for savings, household spending and other financial priorities. The actual tax liability and eligibility for the benefit depend on the applicable tax provisions and the nature of the taxpayer’s income.