Bold Tax Reforms Urged Ahead of India's 2025-26 Budget

Ahead of the 2025-26 Union Budget, former BJP MP Jayant Sinha calls for tax exemptions for incomes up to Rs 10 lakh. As the pre-budget discussion unfolds, changes in tax slabs and deductions are anticipated to alleviate middle-class burdens amid rising inflation.

In anticipation of the Union Budget for 2025-26, former BJP MP and financial expert Jayant Sinha proposed significant tax reforms, particularly for individuals earning up to Rs 10 lakh annually. Sinha advocated raising the tax exemption threshold to Rs 10 lakh to align with the definition of the middle class, arguing this would offer much-needed relief. His remarks were made during the television show 'Jayant Sinha ki Class' aired on Aaj Tak, coinciding with a four-day pre-budget series.

Highlighted in this series are critical insights and discussions aimed at providing guidance before the Union Budget presentation. The budget session of the Indian parliament is set to commence on January 31 and conclude on April 4, with the budget presentation scheduled for February 1. Sources indicate the government may revise income tax slabs and enhance the standard deduction to address growing middle-class concerns amid inflationary pressures.

Current tax structures, perceived as outdated due to a stagnant exemption limit at Rs 3 lakh under the new tax regime, have faced criticism. Financial experts expect adjustments to this limit to deliver relief to small taxpayers, reducing both compliance burdens and tax filing obligations. Furthermore, potential additional deductions for necessary expenses such as health and life insurance premiums and home loan interest payments are suggested to increase the appeal of the new tax regime. The budget unfolds against a backdrop of lackluster GDP growth and weak consumer demand, as the administration gears up to provide strategic economic direction for the remainder of Modi's tenure.

(With inputs from agencies.)