Finance Minister Nirmala Sitharaman recently addressed the financial challenges faced by middle-class taxpayers, highlighting the government’s commitment to providing relief through revised tax structures and targeted reforms. In an interview with Times Now, Sitharaman acknowledged the pressures on salaried individuals and explained the steps taken in the previous budget to reduce their tax burden.
“I respect the issue of giving relief to the middle class. I wish to do more, but there are limitations in taxation. To make a difference for salaried people, the standard deduction has been increased from ₹50,000 to ₹75,000,” Sitharaman stated. This increase, combined with adjustments in tax rates, is designed to provide incremental relief to a broad spectrum of taxpayers, including both middle and higher-income groups.
The government is reportedly considering further income tax reductions for individuals earning up to ₹15 lakh annually. This move, which could affect millions of urban taxpayers grappling with high living costs, is part of a broader strategy to boost consumption and support economic growth amid a slowdown.
Currently, under the 2020 tax regime, incomes between ₹3 lakh and ₹15 lakh are taxed at rates ranging from 5% to 20%, while those exceeding ₹15 lakh are taxed at 30%. If implemented, the proposed reforms would particularly benefit taxpayers who choose the exemption-free tax system.
Beyond tax reforms, Sitharaman also outlined other measures designed to alleviate financial pressure on families. These include subsidized interest rates for student loans up to ₹10 lakh and incentives for affordable housing. “These measures demonstrate our commitment to supporting the middle class and fostering holistic financial relief,” she emphasized.
India’s economic growth has slowed to its lowest rate in seven quarters, largely due to high food inflation and reduced consumer demand. The rising number of taxpayers earning between ₹50 lakh and ₹1 crore, which has surged by 440% over the last decade, further highlights the growing financial strain on both middle- and high-income groups.
Sitharaman’s statements come as the government prepares for the upcoming budget, which will focus on addressing the country’s economic challenges while providing targeted relief to taxpayers.
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