New Delhi: As Prime Minister Narendra Modi’s third term reaches its 100-day milestone, the government has introduced significant measures aimed at providing relief to the middle class. These initiatives include substantial tax savings and the introduction of a Unified Pension Scheme (UPS).
In a bid to ease the financial burden on middle-class families, the government has raised the income tax exemption limit to ₹7 lakh. Additionally, the standard deduction for salaried individuals has been increased to ₹75,000, and the exemption limit for family pensions has been raised to ₹25,0001.
Finance Minister Nirmala Sitharaman announced that a comprehensive review of income tax regulations is underway to simplify and streamline the tax system. The new Tax Code, expected to be introduced soon, aims to make the tax process seamless, painless, and faceless. This initiative is part of the government’s broader goal to reduce litigation and make tax compliance easier for citizens1.
Moreover, the Union Cabinet, chaired by PM Modi, has approved the Unified Pension Scheme (UPS) for central government employees, effective from April 1, 2025. This scheme allows employees to choose between the UPS and the National Pension Scheme (NPS). The UPS promises an assured pension, with provisions for family pensions and lump sum amounts upon retirement1.
These measures reflect the government’s commitment to improving the financial well-being of the middle class and ensuring a secure future for its citizens. As the number of income tax returns filed surged to a record 7.28 crore in the assessment year 2024-25, the average processing time for returns has been significantly reduced, making refunds faster and more efficient1.
