Middle Class Celebrates as Union Budget Exempts Income Tax for Earnings Up to ₹12 Lakh
In a historic move, Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget on Saturday, focusing on growth through four key sectors: agriculture, MSMEs, investment, and exports. In a major relief for taxpayers, she announced that individuals earning up to ₹12 lakh annually will no longer have to pay income tax under the new regime. The middle class has widely welcomed this decision as a significant step toward financial relief and economic growth.
Manjusha Shrivastava, a fashion designer, expressed optimism, highlighting the benefits for the handicraft sector and its potential to create employment. She noted that while the Budget contained limited women-specific announcements, its overall growth-oriented approach would benefit all, including women entrepreneurs.
Subramanyam Harda, President of the Bangalore Hotel Association, emphasized that the reduced tax burden would greatly benefit middle-class earners, particularly salaried individuals. While inflation remains a concern, he believes the tax relief will ease financial pressure on working families.
Businesswoman Vartika Shukla praised the ₹12 lakh tax exemption as the best part of the Budget, along with the reduced taxes on life-saving medicines for critical illnesses. However, she expressed disappointment over the lack of substantial focus on women’s welfare, despite high expectations.
Vikas Kumar, a middle-class citizen, described the ₹12 lakh exemption as a “bumper deal”, calling it long-awaited relief. While cautious about inflation, he was optimistic that the extra savings would provide a much-needed financial boost for families.
Overall, the Budget has sparked hope and enthusiasm among middle-class taxpayers, with many viewing it as a positive step toward financial freedom and economic growth.
New Tax Regime Structure
Finance Minister Nirmala Sitharaman confirmed that there will be no income tax on earnings up to ₹12 lakh annually and ₹12.75 lakh for salaried taxpayers, considering the standard deduction.
The revised income tax slabs under the new regime are as follows:
- ₹0 – ₹4 lakh – No tax
- ₹4 – ₹8 lakh – 5%
- ₹8 – ₹12 lakh – 10%
- ₹12 – ₹16 lakh – 15%
- ₹16 – ₹20 lakh – 20%
- ₹20 – ₹24 lakh – 25%
- Above ₹24 lakh – 30%
The Budget announcement has provided substantial relief to millions of taxpayers, reinforcing the government’s commitment to economic growth and financial stability.
