Many people are expressing relief after hearing the latest budget, but I believe that’s largely because they don’t fully understand its implications. In reality, it feels like just another superficial incentive—a lollipop to create temporary optimism.
For individuals earning over ₹12 lakh annually, the only notable change is the introduction of an additional 25% tax bracket. However, this so-called benefit is limited to those who have opted for the new tax regime and have forfeited key deductions commonly claimed by salaried individuals. These include deductions under Section 80C (up to ₹1.5 lakh), house rent allowance (HRA), home loan interest benefits, and other similar exemptions. It’s important to note that when the government introduced home loan tax benefits, it was with the understanding that these are long-term financial commitments. Removing or restricting such deductions under the new tax regime undermines that very principle.
Ultimately, this budget appears more focused on generating headlines and uplifting public sentiment rather than offering meaningful tax relief. The majority of taxpayers continue to rely on deductions available under the old tax regime, where no significant changes have been made. Moreover, the beneficial aspects of the old regime have not been integrated into the new one. As a result, the budget feels more like a cosmetic adjustment than a genuine effort to ease the financial burden on individuals.