Tue Jan 28 15:59:10 UTC 2025: ## Finance Minister to Present Budget 2025-26; Tax Relief Expected for Middle Class

**New Delhi, [Date]** – Finance Minister Nirmala Sitharaman will present the Union Budget 2025-26 on February 1, 2025. Tax experts and taxpayers anticipate significant tax cuts to alleviate the burden of inflation, particularly for lower and middle-income groups.

The previous budget (2024-25) introduced several benefits under the new tax regime, featuring a higher tax-free income limit, reduced deductions, and a simplified filing process. Data suggests that around 72% of the 9 crore income tax returns filed for assessment year 2024-25 used the new regime, with over 70% reporting taxable income of ₹5 lakh or less. This indicates that a large majority of taxpayers (9 out of 10) are in the no-tax or low-tax brackets.

Speculation is rife that the government might increase the tax exemption limit under the new tax regime to ₹10 lakh. Experts believe this would provide financial relief to the middle class, boost demand and consumption, and ultimately stimulate economic growth. While this remains unconfirmed, the government aims to increase the adoption of the new tax regime.

Further proposals include introducing a 25% additional tax slab for incomes between ₹15 lakh and ₹20 lakh. This, according to Vimal Nadar, Research Director at Colliers India, would increase disposable income and boost consumption due to increased liquidity in the hands of individuals.

Separately, Gujjar leader Vijay Bansala in Rajasthan has accused the BJP government of inadequate representation for the Gujjar community, citing concerns over reservation quotas and pending cases related to past agitations.

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