In a landmark announcement during the Union Budget 2025, Finance Minister Nirmala Sitharaman declared that no income tax will be payable on annual incomes up to Rs 12 lakh.
This move, hailed as a significant relief for the middle class grappling with rising inflation, fulfils a long-standing demand of the category.
Will ease financial burden on middle class
“This decision aims to ease the financial burden on the middle-income group and stimulate economic growth,” Sitharaman said during her budget speech. The new tax slab is expected to boost disposable incomes, increase consumer spending, and provide much-needed respite amid escalating living costs.
Political analysts view this announcement as a strategic move by the BJP, aiming to consolidate its voter base ahead of the Delhi Assembly elections scheduled for February 5.
With the BJP eyeing to dethrone the Aam Aadmi Party (AAP), the tax relief is seen as an attempt to sway the middle-class electorate, a key demographic in Delhi.
Rival political parties criticise govt for timing of announcement
The opposition, however, has criticised the timing of the announcement. Some leaders termed it an “election gimmick”, questioning why such relief wasn’t introduced earlier. A few others expressed skepticism, suggesting that the government was leveraging fiscal policies for electoral gains.
Despite the political debates, the middle class has largely welcomed the move. Anuj Thakur, a Delhi-based school teacher, said, “This is a huge relief. It will allow us to save more and invest in our future.”
