
HYDERABAD: The new tax regime introduced in the Union Budget on Saturday has received positive reactions from professionals, business owners and financial experts alike.
Financial analysts noted that the Budget focused on growth and development, marking a step forward from previous Budgets. Experts welcomed the relief to the middle class but emphasised that the new tax codes, expected to be released next week, would offer further clarity to taxpayers.
Raghuram Kuchimanchi, financial expert and partner, assurance & advisory, Sudit K Parekh & Co. LLP, highlighted that the Budget had significantly eased the tax burden on the middle class by raising the tax rebate threshold from Rs 7 lakh to Rs 12 lakh.
Speaking to TNIE, Raghuram explained, “Taxpayers with an annual income of up to Rs 12.75 lakh will not be required to pay any tax, as their liability becomes nil due to the tax rebate. This takes into account the standard deduction of Rs 75,000. Taxpayers earning more than Rs 12.75 lakh will benefit from the new tax slab adjustments. In effect, a taxpayer in the new regime with an income of Rs 12 lakh will save Rs 80,000 in taxes. Those earning Rs 16 lakh will save Rs 50,000, while individuals making over Rs 24 lakh annually will save Rs 1.1 lakh.”
Dr Dinesh Chandrasekar, chief strategy officer and country head of Centific AI, said, “The new tax regime simplifies taxation by raising the tax-free income limit to Rs 12.75 lakh. This increases disposable income while reducing compliance burdens.
By eliminating complex exemptions, this structure enables people to focus on investment choices based on returns rather than tax benefits. With more liquidity, taxpayers can explore diverse financial instruments such as mutual funds, stocks and retirement plans, ensuring long-term wealth creation. While the new regime offers flexibility, people must proactively invest in assets aligned with their financial goals, balancing immediate savings with future security.”
With no I-T burden for income levels up to Rs 12.75 lakh, a major section of the middle class has reason to cheer. However, the key question is whether these changes will boost sagging consumption and improve savings. Rising prices, high borrowing costs and stagnating incomes have already impacted India’s middle class
Sailaja Yerramilli, IT worker
The increased disposable income could boost consumption and investment, assuming favourable conditions like inflation, interest rates and employment. While tax relief alone does not determine economic stability, this strengthens financial resilience. Hopefully, the govt will continue in this direction
Narendra Ram Nambula, CMD, Lifespan Pvt Ltd
Tax harmonisation was long overdue and is now being addressed. In a country with limited social security, the government’s move to lower tax slabs is commendable. Eliminating cross-taxation simplifies filing and reduces tax liability. Given the government’s revenue from indirect taxes like fuel, it was only a matter of time before good governance eased the direct tax burden on the middle class. These reductions will enhance quality of life, boost savings and drive economic benefits by increasing consumer spending and investment
Uday Pilani, Chairman, Pilani Group
I find the Budget promising, with a strong focus on the welfare of the poor, youth and women. The tax relief is a major benefit for the middle class. The proposed Rs 10,000 crore ‘Fund of Funds’ is a boost for startups, while extended tax exemptions until 2030 encourage business
Twinkle Benjamin Dundoo, IT professional