Budget 2025 has increased the limit of income tax to 12lakhs

Yes that is the main issue not many are earning enough.

It’s a shame that more aren’t earning a good salary.

It is a result of Politico-Economic calculations. Political factor : Upcoming Delhi State Assembly elections. Economic : Economic Survey plus regular report show Economy in distress. Urban consumption has been outpaced by rural albeit by a few points. Even festive season did not lead to good demand rise. Many Industries as well as Services sector is facing downturn or slow growth. Deposit growth in banks is slow. Persisting high interest rates are proving to be detrimental. Inflation still bites. So income tax changes were in fact direly needed. However, FM should have at least removed GST or reduced it on Life and Medical Insurance and any kind of medical devices. Plus I need to see if the spending on Healthcare & Education has seen any jump from the Government as they are very much needed.

Perhaps he is hoping it will help him win votes.

In India, there are good amount of people who are not paying taxes but earning in sweet 8 figures. E.g scrap dealers. They are yet to be bought under the income tax. Also curb to corruption. Centre or states have not been effective in controlling the corruption and black money market. Although raising the ceiling to 12 Lakhs will be a relief , the challenge is interest rates are high and inflation is high plus imports are high. All these need to come down in order for the country to prosper. After an year, there may be curbs or restrictions in some ways , if things does not work out this year. Lets see!