India's Budget 2025-26 Introduces Major Tax Cuts for Middle Class

The Modi government has announced significant income tax relief, raising exemptions to ₹12 lakh, aiming to boost consumption and support economic recovery.

The Union Budget 2025-26 raises the income tax exemption limit from ₹7 lakh to ₹12 lakh, providing relief to middle-class taxpayers and salaried individuals.
The government estimates a revenue loss of ₹1 lakh crore due to the tax cuts, which are expected to boost consumer spending and economic activity.
Critics argue the budget prioritizes short-term tax relief over long-term reforms needed to address structural economic challenges and achieve sustained high growth.
The budget also emphasizes capital expenditure, with ₹11.2 trillion allocated for infrastructure projects, though this is a marginal increase from last year.
Opposition parties and analysts have debated the political motivations of the tax cuts, with some viewing them as a strategy to influence upcoming elections in Delhi and Bihar.