might bring some relief to middle-class taxpayers...!! Your POV Guys...?

The Union Budget 2025-26 might bring significant relief to middle-class taxpayers, as the government is reportedly considering income tax cuts for individuals earning up to ₹15 lakh annually. According to a Reuters report citing sources, the decision on the extent of these tax cuts will be finalized closer to the budget announcement by Finance Minister Nirmala Sitharaman on February 1.

If implemented, the cuts are expected to benefit millions of taxpayers, particularly urban residents burdened by rising living costs. However, the tax relief will reportedly apply to those choosing the new tax regime introduced in 2020, which offers lower tax rates but eliminates popular exemptions like provident fund contributions, home loans, rental deductions, and insurance premiums.

Currently, taxpayers can choose between the older regime with exemptions and deductions or the newer structure with reduced rates but fewer benefits. The government appears eager to encourage more taxpayers to transition to the newer system.

The potential tax cuts arrive at a time of slowing GDP growth, which fell to a seven-quarter low in the July-September period, raising concerns about economic momentum. High food inflation has further strained household budgets, reducing demand for essential goods and discretionary items in urban areas.

By increasing disposable income through tax cuts, the government aims to spur consumption and provide a much-needed boost to India's economy, the fifth largest in the world. The move could address both economic concerns and the financial strain faced by middle-class families...!!