Well-thought, beneficial for middle class: Businessmen laud Union Budget

New Delhi: The newly-announced tax slabs in Union Budget 2025 have brought significant relief to the Indian middle class, while the business community has lauded the move as a strategic decision that will fuel economic growth.

The revised tax structure, unveiled by Finance Minister Nirmala Sitharaman, ensures that individuals earning up to Rs 12 lakh a year and salaried taxpayers with earnings up to Rs 12.75 lakh a year (including standard deduction) will not have to pay any income tax.

Manish Singhal, Secretary General of ASSOCHAM, told IANS that this year’s Budget has struck the right balance across key sectors.

“There are no complaints about this Budget. Usually, people find certain aspects favourable, while others may be disappointing. This time, however, the overall Budget is well-received. Under the Prime Minister’s 2047 vision of a ‘Viksit Bharat’, the Finance Minister has taken into account sustainability, agriculture, small businesses, and other critical areas,” he said.

He further emphasised that the new tax regime will not only benefit the middle class but also have a positive impact on industries.

“When the middle class has more disposable income, consumption increases, which in turn boosts industrial production. This will encourage greater private sector investment in CAPEX. The Budget sets in motion a new positive cycle,” he added.

Speaking to IANS, ASSOCHAM J&K Development Council Chairman Manik Batra shared similar views, describing the Budget as “well-planned and thoughtful.”

He highlighted the significance of the tax revisions, stating, “The Indian economy is largely driven by the middle class, and these new tax slabs will provide a major boost. With a standard deduction of Rs 75,000 for salaried employees, those earning up to Rs 12.75 lakh will be exempt from paying income tax. This will uplift overall market sentiment.”

Batra also pointed out the broader economic impact of these changes. “With higher savings, people will be encouraged to travel more, shop more, and contribute to the growth of sectors like tourism and retail. We also hope to see strong provisions for the development of Jammu and Kashmir,” he added.

ASSOCHAM J&K Development Council Co-Chairman Bhupesh Gupta praised the tax reforms, stating that they exceeded expectations.

“We had anticipated an increase in the exemption limit from Rs 7.5 lakh to Rs 10 lakh, but raising it to Rs 12 lakh is a major boost. This is a well-thought out and exceptional Budget that greatly benefits the middle class,” he told IANS.

In the new tax regime, the revised tax rate structure is Rs 0-4 lakh (zero tax), Rs 4-8 lakh (5 per cent), Rs 8-12 lakh (10 per cent), Rs 12-16 lakh (15 per cent), Rs 16-20 lakh (20 per cent), Rs 20-24 lakh (25 per cent), and above Rs 24 lakh (30 per cent).

“The new tax structure would substantially reduce tax for the middle class,” announced FM Sitharaman.

Presenting the Union Budget 2025-26, FM Sitharaman said that the tax deduction at source (TDS) rates will be rationalised, and the limit for tax deduction for senior citizens will be doubled to Rs 1 lakh.

FM Sitharaman also proposed to extend the time limit to file the updated return from two years to four years.

–IANS