In a significant move to provide relief to the middle class, Finance Minister Nirmala Sitharaman announced during the Union Budget 2025 that individuals with an annual income of up to ₹12 lakh will be exempt from paying income tax.

This decision aims to boost consumption and demand, offering substantial financial relief to a large segment of the population.

A primary request from taxpayers is the simplification of the direct tax system. The government is anticipated to introduce the Direct Tax Code 2025, which aims to eliminate outdated provisions, streamline tax rates, and modify TDS regulations to facilitate easier compliance. 

Furthermore, taxpayers are hopeful for an increase in the standard deduction, which would benefit many by lowering their taxable income.

More details will be revealed next week!