PM Modi highlights how Budget 2025 eliminates tax for incomes up to ₹12 lakh, contrasting it with high taxation under previous Congress governments.
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PM Modi Lauds Budget 2025 for Tax Reforms
Prime Minister Narendra Modi, while addressing a rally at RK Puram in Delhi, praised the Union Budget 2025 for its tax relief measures. He contrasted the current tax regime with historical taxation policies under Congress-led governments, emphasizing how the new budget benefits the middle class.
Heavy Tax Burden in Nehru and Indira Gandhi’s Era
PM Modi illustrated how taxation was significantly higher in the past.
- During Jawaharlal Nehru’s tenure, individuals earning ₹12 lakh annually had to pay nearly one-fourth of their income in taxes.
- Under Indira Gandhi’s government, the tax burden was even higher, with almost ₹10 lakh of ₹12 lakh being taxed.
“This was the scenario back then, which is why I am explaining this today,” PM Modi stated, highlighting the relief offered by the latest budget.
Taxation Under Congress vs. BJP Governments
Even a decade ago, under Congress rule, an individual earning ₹12 lakh had to pay approximately ₹2.6 lakh in taxes. However, Modi emphasized that under the new budget introduced by Finance Minister Nirmala Sitharaman, there will be zero tax on the same earnings.
Key Highlights of Union Budget 2025
1. No Income Tax for Earnings Up to ₹12 Lakh
In a major relief for taxpayers, the 2025 budget ensures that individuals earning up to ₹12 lakh annually will not be required to pay income tax. This move is aimed at strengthening the financial well-being of the middle class.
2. Increased Standard Deduction
- The standard deduction has been increased to ₹75,000.
- Effectively, the tax-free income limit is now ₹12.75 lakh.
3. Encouraging Growth and Investments
By reducing the tax burden, the government aims to boost savings, consumption, and overall economic growth. The policy is expected to empower middle-class households and improve their financial security.
PM Modi’s Vision for a Stronger Middle Class
During his speech, PM Modi reaffirmed his commitment to making India a more prosperous nation by reducing unnecessary financial burdens on its citizens. He expressed confidence that these reforms will provide greater financial flexibility and contribute to the country’s economic development.
Conclusion
The 2025 Union Budget marks a significant shift in India’s taxation policies. With income up to ₹12 lakh being completely tax-free, the government has taken a decisive step to support middle-class families. As the nation moves towards a more robust economic structure, these measures are expected to drive growth and financial stability.
