New Delhi [India], January 28 : In the run-up to the Budget for 2025-26, former BJP MP and financial market observer Jayant Sinha, suggested that individuals earning up to Rs 10 lakh per annum should enjoy the benefits of tax exemption.
"Tax benefits should be extended to those with an annual income of up to Rs 10 lakh. My suggestion is to raise the tax exemption limit to Rs 10 lakh, as per our definition of the middle class, which earns up to Rs 10 lakh per annum," Sinha said, at a pre-budget show titled 'Jayant Sinha ki Class', on TV channel Aaj Tak.
He categorically suggested that the "middle class" be exempted from paying taxes.
His AajTak pre-Budget series, running for four days through Wednesday, offers further valuable insights in the lead-up to the Union Budget.
The budget session of parliament will begin on January 31 and, according to schedule, will end on April 4. The budget will be presented on February 1.
According to sources, the government is considering hiking income tax slabs and enhancing the standard deduction to address the concerns of middle-class taxpayers amid rising inflation.
The current tax structure, with a basic exemption limit of Rs 3,00,000 under the new tax regime, has drawn criticism for being outdated in the face of escalating living costs. Experts anticipate an increase in this threshold to provide much-needed relief to small taxpayers, reducing their compliance burden and lowering mandatory tax filing obligations.
Experts also suggest that additional deductions for essential expenses like health insurance, life insurance premiums, and home loan interest payments could also be incorporated to make the new tax regime more attractive.
All eyes will be on the key announcements and the government's forward-looking economic guidance for the remainder of the Modi 3.0 tenure. This upcoming budget comes in the backdrop of weak GDP numbers and weak consumption in the economy.