A tax regime for India’s needy ‘middle class’
Who needs a break from taxes in India? According to the Union Finance Minister, it is those Indians with annual incomes of many lakhs and or even crores. As per the new tax regime introduced in the recent budget, to be implemented for the fiscal year 2025-26, Indians earning salaries of up to 12.75 lakhs a year (almost doubled from Rs 7 lakh previously) no longer have to pay income tax on their income. And the highest tax slab is 30% for an income of over Rs 24 lakhs a year; it is 30% currently too, but on incomes above Rs 10 lakhs. It is noteworthy that, as a result of these proposals, the government will forego revenue of about Rs 1 trillion in direct taxes, and Rs 2600 crore in indirect taxes, according to the minister herself. (more…)