New Delhi, Feb 2: The new tax structure introduced in the Union Budget for 2025-26 is set to benefit around 5.65 crore taxpayers earning Rs 4 lakh or more annually.
A report from the State Bank of India (SBI) estimates that these taxpayers will collectively save about Rs 1 lakh crore in taxes. Among the various income groups, those earning between Rs 8 lakh and Rs 12 lakh per year are expected to see the most significant benefits.
The SBI report stated, "The new tax structure will benefit approximately 5.65 crore taxpayers (falling under the Rs 4 lakh+ tax slab), leading to an impressive Rs 1 lakh crore in total tax savings."
This tax relief is projected to spur a rise in consumption. With a marginal propensity to consume (MPC) of 0.7, the report predicts that the additional disposable income could boost consumption by around Rs 3.3 lakh crore. This surge in spending is expected to stimulate economic activity, fostering a more dynamic and sustainable economy. Increased demand across various sectors could potentially lead to job creation and improve overall economic well-being.
In addition to the tax cuts, the budget introduced a key change to the income tax return (ITR) filing process. The government has extended the time limit for filing updated returns (ITR-U) from 24 months to 48 months. This extension is intended to provide taxpayers with more time to voluntarily update their income details and pay any additional taxes owed.
(With agency inputs)
