Sun Feb 02 11:20:00 UTC 2025: ## Modi Highlights Tax Reliefs in Contrast to Nehru and Indira Gandhi’s Era

**New Delhi** – Prime Minister Narendra Modi lauded the Union Budget 2025, highlighting the elimination of income tax for individuals earning up to ₹12 lakh annually. Addressing a rally in Delhi on Sunday, Modi contrasted this with the tax policies of previous Congress governments, claiming significantly higher tax burdens under Jawaharlal Nehru and Indira Gandhi’s leadership.

Modi asserted that a ₹12 lakh annual income would have resulted in a tax payment of approximately ₹2.6 lakh under previous Congress administrations. He painted a stark picture, suggesting that under Nehru’s rule, a quarter of a ₹12 lakh salary would be taken as tax, and that under Indira Gandhi, nearly the entire amount could have been claimed by the government.

Finance Minister Nirmala Sitharaman, who presented the budget on Saturday, announced the ₹12 lakh tax-free income threshold as a significant benefit for the middle class. This is further enhanced by a ₹75,000 standard deduction, effectively raising the tax-free limit to ₹12.75 lakh. Sitharaman emphasized that this exemption applies under the new tax regime, excluding specific income types such as capital gains.

Modi’s remarks have sparked debate, with the BJP celebrating the move as a major achievement for the middle class, while the opposition is likely to scrutinize the claims made about previous tax regimes.

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