Jayant Sinha Advocates Tax Breaks for India's Middle Class

Former BJP MP Jayant Sinha suggests raising the tax exemption limit to Rs 10 lakh for the middle class ahead of the 2025-26 budget. The proposal aims to address rising living costs and provide relief to taxpayers, with potential changes to income tax slabs and standard deductions anticipated.

In anticipation of the 2025-26 Budget, former BJP MP and financial analyst Jayant Sinha has proposed a notable tax policy change. He advocates for those earning up to Rs 10 lakh per annum to receive tax exemptions, aligning with his definition of the middle class. This was discussed during his pre-budget series 'Jayant Sinha ki Class' on Aaj Tak.

Sinha's series, which concludes on Wednesday, offers deep insights ahead of the Union Budget. The parliamentary budget session is set for January 31 to April 4, with the budget presentation on February 1. Government sources indicate possible income tax slab adjustments and enhanced standard deductions to ease the burden on the middle class amid inflation.

The current tax setup, which has a basic exemption limit of Rs 3 lakh, is under scrutiny for being outdated given rising living expenses. Analysts expect this threshold to increase, easing the compliance workload for small taxpayers and potentially including more deductions for essential living costs. These changes are keenly anticipated against a backdrop of weak GDP and economic consumption.

(With inputs from agencies.)