Tax Relief for Middle Class Decoding PM Modi’s Pre-Budget Message

New Delhi, January 31, 2025 – As the nation gears up for the presentation of the Union Budget on February 1, 2025, all eyes are on whether Finance Minister Nirmala Sitharaman’s Budget will offer relief to the middle class amid the ongoing economic challenges. Ahead of the session, Prime Minister Narendra Modi’s remarks invoking Goddess Lakshmi and specifically mentioning the middle class and the poor have stirred expectations of tax relief and women-centric welfare measures.

PM Modi’s Address Sets the Tone for Budget Expectations

In his customary pre-Budget address, Prime Minister Modi expressed hope for blessings for the middle class and poor from Goddess Lakshmi. He emphasized, “It is a matter of great pride that India completed 75 years as a democratic nation,” while reiterating the importance of innovation, inclusion, and investment in shaping India’s economic roadmap. This speech has sparked discussions about potential economic relief measures for the masses, particularly the middle class, which has been grappling with rising prices and stagnant wages.

Union Budget 2025: A Focus on Relief Amidst Economic Challenges

With the Union Budget 2025 set to be presented tomorrow, anticipation is high regarding measures to tackle slowing economic growth and provide fiscal relief to the middle class. Amid growing concerns over economic uncertainty, salaried taxpayers are hoping for tax breaks, such as reduced income tax rates and higher deductions, to alleviate the financial strain caused by inflation and wage stagnation.

Tax Relief on the Horizon? Changes to Income Tax Slabs Expected

According to government data, 72% of taxpayers have already transitioned to the new tax regime, which eliminates exemptions and deductions while offering lower tax rates. There is growing speculation that major changes to the new tax regime may be announced, which could include making income up to Rs 10 lakh tax-exempt and introducing a new 25% tax slab for earnings ranging between Rs 15 lakh and Rs 20 lakh.

Expected Income Tax Slabs under the New Tax Regime

Income Tax Slabs	Tax Rate
Rs 0 – Rs 3 lakh	Nil
Rs 3 lakh – Rs 7 lakh	5%
Rs 7 lakh – Rs 10 lakh	10%
Rs 10 lakh – Rs 12 lakh	15%
Rs 12 lakh – Rs 15 lakh	20%
Above Rs 15 lakh	30%

What’s Next? FM Sitharaman’s Budget Presentation

As Finance Minister Nirmala Sitharaman prepares for her eighth consecutive Budget presentation, industry experts, taxpayers, and businesses alike are eagerly awaiting whether FY 2025-26 will witness a reduction in the income tax burden. The government’s push for the adoption of the new tax regime has heightened hopes for tax reforms that could provide relief to the middle class and help boost overall consumer demand.

Highlight’s:

• PM Modi’s Pre-Budget Address has triggered expectations of measures targeting the middle class and women-centric schemes.
• Income Tax Relief is a key area of anticipation, with potential changes in income tax slabs and tax exemptions on the cards.
• Economic Growth Concerns: The Union Budget 2025 will need to balance tax relief with measures to stimulate growth and address the economic slowdown.

With February 1 fast approaching, the nation awaits the details of the Budget, hoping for measures that will address the pressing issues facing the middle class and stimulate the economy toward sustained growth.