New Delhi. The statement given by Prime Minister Narendra Modi about the middle class in the address to NDA MPs on June 7 has raised hopes of income tax exemption in the budget. The full budget for the current financial year 2024-25 will be presented in the third week of July.

According to sources, the Finance Ministry has taken this statement of the Prime Minister seriously and has started brainstorming on income tax relief. So that the middle class can be given relief by giving income tax exemption in the budget.

What did PM Modi say?

In his speech on June 7, the Prime Minister said that the middle class is the driver of the country's development and their well-being and convenience is our priority. He said that we will make policies in the direction of how the middle class can save some money and how their life can be made easier.

According to sources, the work of providing savings facility to the middle class has started. No income tax exemption has been given in the last five years. However, now those who choose the new income tax system are exempted from tax on income up to Rs 7.5 lakh including standard deduction of Rs 50,000.

More than 8 crore taxpayers

According to sources, there is a discussion going on in the Finance Ministry about changing the income tax slabs so that the middle class can save some money. Currently, those who earn more than 15 lakh rupees annually have to pay tax at the rate of 30 percent. The savings from the change in tax rates will increase the consumption of the middle class, which is beneficial for the economy.

The number of people filing income tax returns is constantly increasing and in the last financial year this figure crossed eight crores. The number of tax payers is also increasing, so the government may announce relief in income tax in the upcoming budget.