As the Union Budget 2025-26 draws near, excitement is building over the possibility of significant income tax reductions. The government is reportedly considering tax cuts for individuals earning up to ₹15 lakh annually, with final announcements set for February 1. These measures aim to provide relief to the middle class and spur economic growth.
A recent survey by Grant Thornton Bharat revealed that 57% of taxpayers are calling for lower income tax rates, while 25% are advocating for higher exemption limits. Notably, 53% of respondents support the inclusion of house property loss set-offs under the new tax regime.
Experts believe these tax cuts could boost disposable incomes and drive consumer spending, especially for individuals earning between ₹10 lakh to ₹20 lakh. Sectors such as consumer staples and automotive industries are expected to benefit from increased discretionary demand.
While economists agree that reduced tax rates could stimulate economic activity, they caution against overstepping fiscal limits, emphasizing the need for a balanced approach to maintain long-term stability.
With the budget announcement just days away, taxpayers and industry leaders alike are eager to see what reforms lie ahead for personal finances and the broader economy.
