Middle Class to Benefit from Income Tax Cuts in 2025

The Union Budget 2025-26 brings significant income tax relief to the middle class, with individuals earning up to ₹12 lakh annually now exempt from income tax. This measure is projected to benefit over 6.3 crore taxpayers and stimulate economic growth by boosting consumer spending. KV Subramanian of the IMF anticipates that these tax cuts could increase India's GDP growth rate to around 8%. Finance Minister Nirmala Sitharaman has stated that the income tax cut demonstrates the strength of the economy. 

 

Source: The Economic Times, Business Today, India Briefing