Budget 2026: Experts Push for Inflation-Linked Tax Slabs to Aid Middle Class
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Moneycontrol•31-01-2026, 18:23
Budget 2026: Experts Push for Inflation-Linked Tax Slabs to Aid Middle Class
- •Tax experts advocate for increasing the 30% income tax slab and linking it to inflation to provide relief to the middle class.
- •Currently, the 30% tax slab applies to incomes above 24 lakh rupees, which experts argue is too low, pushing new professionals into the top bracket prematurely.
- •Linking tax slabs to the Consumer Price Index (CPI) and reviewing them every 3-5 years is suggested to ensure real income growth for taxpayers.
- •Increasing tax slabs could boost middle-class disposable income, leading to higher consumption, increased GST revenue, and reduced inflationary pressures.
- •Experts also recommend increasing the standard deduction, Section 87A rebate, and the home loan interest deduction limit (currently 2 lakh rupees) to reflect rising property prices.
Why It Matters: Linking income tax slabs to inflation and increasing deductions are crucial for middle-class relief and economic growth.
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