Union Finance Minister Nirmala Sitharaman has commenced delivering the Union Budget, marking her eighth in a row. A reduction or adjustment in income tax rates/slabs to alleviate the pressure on the middle class is anticipated.
This is the Narendra Modi government’s first complete budget for the third term, introduced amid geopolitical uncertainties and a decline in economic growth to a four-year low.
In a significant relief for the middle class, Nirmala Sitharaman declared that no income tax would be owed on incomes up to Rs 12 lakh.
Here is the updated income tax slab:
Rs 0-4 lakh — Nil
Rs 4-8 lakh — 5%
Rs 8-12 lakh — 10%
Rs 16-20 lakh — 20%
Rs 20-24 lakh — 25%
Above Rs 24 lakh — 30%
What does the economic survey indicate regarding growth?
The Economic Survey 2024-25 estimates India’s GDP growth for FY26 to be between 6.3% and 6.8%, highlighting the importance of domestic growth rather than exports. To attain Viksit Bharat by 2047, an annual growth of 8%, a 35% investment rate, and advancements in manufacturing, AI, robotics, and biotechnology are essential.
