Uttarakhand CM Hails Income Tax Relief for Middle Class

Uttarakhand Chief Minister Pushkar Singh Dhami praised the Union Government for the landmark budget announcement, exempting income up to Rs 12 lakh from tax, benefiting the middle class. This decision, according to Dhami and Union Finance Minister Nirmala Sitharaman, supports economic growth and adjusts the tax regime to aid taxpayers.

Uttarakhand Chief Minister Pushkar Singh Dhami expressed gratitude towards the Union Government, led by Prime Minister Narendra Modi, for a significant budget announcement that offers substantial relief to taxpayers, especially the middle class. Under the new Union Budget 2025-26, income up to Rs 12 lakh will now be tax-free, a move Dhami termed a 'big gift' for the middle class.

This welfare decision is anticipated to positively impact the common man throughout the country, ushering in economic development and lifestyle enhancements, Dhami noted. The income tax relief is extended to Rs 12.75 lakh for salaried taxpayers, inclusive of a Rs 75,000 standard deduction, and reflects a simpler tax regime prioritizing middle-class benefits, as highlighted by Union Finance Minister Nirmala Sitharaman.

Despite the overall positive reception, there is a catch; exemptions are contingent on utilizing specific sections of the income tax act, such as Rs 1.5 lakh under section 80CCC or Rs 1.5 lakh for home loan interest. Sitharaman emphasized that tax rebates apply to normal income up to Rs 12 lakh, beyond special rate income like capital gains.

The budget announcement was met with enthusiasm in the treasury benches, led by PM Narendra Modi, and introduced changes in income tax slabs and rates for a progressive taxation system. Sitharaman articulated that revisions in slabs are designed to reduce middle-class taxes, encouraging household consumption and investment.

Income up to Rs 4 lakh is now non-taxable, up from Rs 3 lakh, offering significant tax savings across various income brackets. The Finance Minister illustrated potential benefits, noting a taxpayer earning Rs 12 lakh could save Rs 80,000, while those with Rs 18 lakh and Rs 25 lakh incomes might benefit by Rs 70,000 and Rs 1,10,000 respectively.

The tax slab changes are set to result in a revenue loss of around Rs 1 lakh crore in direct taxes and Rs 2,600 crore in indirect taxes (ANI).