Hyderabad: Former IAS officer and Loksatta Party president Jayaprakash Narayana has termed the central government’s decision to exempt income tax on earnings up to ₹12 lakh as a revolutionary move. He stated that this policy will provide significant relief to the middle class and boost their purchasing power.
Analyzing the Union Budget 2025-26, Jayaprakash Narayana highlighted the drastic increase in the tax exemption limit. “A decade ago, income up to ₹2.5 lakh was tax-free, but now it has been raised to ₹12 lakh, effectively exempting individuals earning ₹1 lakh per month. This is the biggest economic reform in India,” he said.
He further noted that while the US dollar is valued at ₹86, its purchasing power is equivalent to ₹20 in India, making the lower tax burden even more beneficial. He also emphasized that India’s income tax rates are now among the lowest compared to developed nations.
Jayaprakash Narayana praised the government for prioritizing the welfare of crores of middle-class earners by foregoing massive revenue collections in favor of economic empowerment.
