On February 1, Home Minister Amit Shah praised Finance Minister Nirmala Sitharaman’s recent announcement. This followed her declaration about the removal of income tax for income up to ₹12 lakh under the new tax framework. In a post on X, the home minister noted that Prime Minister Narendra Modi has consistently placed the middle class at the forefront of his priorities.
Shah described the announcement as the foundational plan for the Modi government’s aspirations to create a prosperous and exemplary India across various domains.
While addressing his followers on X, Amit Shah remarked, “The middle class always occupies a special place in PM Modi’s heart. Zero Income Tax on incomes up to ₹12 Lakh. This proposed tax exemption will significantly contribute to improving the financial status of the middle class. Congratulations to all beneficiaries on this noteworthy occasion.”
During her Union Budget 2025 speech, FM Sitharaman declared that there would be no income tax owed on earnings below ₹12 lakh, offering considerable relief to taxpayers, particularly the middle class. Notably, this threshold will be ₹12.75 lakh for salaried individuals, factoring in ₹75,000 for standard deduction. She also indicated that the new income tax structure will be more straightforward, with a particular emphasis on supporting the middle class.
However, there is a stipulation: this relief can be accessed only if a taxpayer utilizes exemptions available under various sections of the Income Tax Act, such as the ₹1.5 lakh exemption under section 80CCC and the ₹1.5 lakh exemption for home loan interest payments.
According to the finance minister, “For taxpayers, a tax rebate is being introduced for up to ₹12 lakh of regular income (excluding special rate income like capital gains), in addition to the benefits due to reduced slab rates, ensuring that they will not owe any taxes.”
The announcement of this significant relief for the middle class from the finance minister was met with enthusiastic applause from the treasury benches, led by PM Narendra Modi.
In the meantime, the Lok Sabha was adjourned on Saturday after the Union Budget was presented by Finance Minister Nirmala Sitharaman. The House is set to reconvene on February 3 at 11 a.m.
(With contributions from various agencies)
