Prime Minister Narendra Modi took a swipe at the Congress party on Sunday, invoking former prime ministers Jawaharlal Nehru and Indira Gandhi to highlight the heavy taxes imposed during their tenures. In contrast, he praised his government’s efforts to ease the tax burden and provide greater relief to the middle class. Addressing a rally at RK Puram in Delhi, PM Modi presented a comparative picture of tax policies across different eras.
PM Modi explained that during Nehru Ji’s time, if someone earned ₹12 lakh, the government would take away one-fourth of their salary as tax. He further elaborated that in Indira Ji’s era, nearly ₹10 lakh out of ₹12 lakh would go into taxes. “That was the scenario back then, which is why I am explaining this today,” he said. Modi emphasized that under Congress rule, a ₹12 lakh income meant paying ₹2.6 lakh in tax.
In stark contrast, the latest budget presented by his government ensures zero tax on the same earnings. “Even 10–12 years ago, under a Congress government, if you earned ₹12 lakh, you had to pay ₹2,60,000 in taxes. Now, after yesterday’s BJP government budget, a person earning ₹12 lakh in a year will not have to pay even a single rupee in tax,” PM Modi added.
In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced that people earning up to ₹12 lakh per year will not have to pay income tax. She stated that this step aims to help the middle class. With a ₹75,000 standard deduction, the tax-free income limit will effectively be ₹12.75 lakh.
“I am happy to announce that there will be no income tax on income up to ₹12 lakh [i.e. ₹1 lakh per month, excluding special rate income like capital gains] under the new regime,” Sitharaman added.
The new tax regime is expected to provide significant relief to the middle class, allowing them to retain more of their earnings. This move is part of the government’s broader strategy to stimulate economic growth by increasing disposable income and boosting consumer spending.
PM Modi’s remarks come at a time when the BJP government is keen to showcase its economic policies and reforms as more favorable to the common man compared to previous administrations. By drawing comparisons with the tax policies of Nehru and Indira Gandhi, Modi aims to highlight the progress made under his leadership.
As the Union Budget 2025 rolls out, the focus remains on providing relief to the middle class and fostering economic growth. The government‘s efforts to ease the tax burden are expected to have a positive impact on the overall economy, encouraging spending and investment.
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