Tax Relief Likely for Individuals Earning up to ₹15 Lakh Annually"

To provide relief to the middle class and boost consumption amid an economic slowdown, the government may announce significant tax benefits for individuals earning up to ₹15 lakh annually in the upcoming February budget.
According to officials associated with the government, this step could directly benefit taxpayers, particularly those facing financial challenges in urban areas due to rising living costs. If implemented, it will provide options between two tax systems.

Current Tax System:
Under the current regime, taxpayers can opt for a tax structure where they claim deductions for home loans and other expenses. Those choosing this regime can claim a 20% tax exemption for income between ₹3 lakh and ₹15 lakh, along with additional benefits.

New Tax Regime:
In contrast, the new regime offers lower tax rates but excludes exemptions for home loans and other deductions. It simplifies the process but is less beneficial for individuals with significant financial liabilities.

Economic Benefits:
This move is expected to increase disposable income, providing a boost to consumption and overall economic growth. Experts believe that higher spending will stimulate demand in sectors like urban housing, consumer goods, and services, ultimately accelerating economic recovery.

The government's proposal aligns with India’s ambition to strengthen its position as the world's fifth-largest economy, particularly as it navigates global economic challenges. However, officials have yet to confirm details regarding these proposed changes.