In a public address in RK Puram ahead of the Delhi Assembly elections, Prime Minister Narendra Modi sharply criticized the Congress party's historical taxation policies, drawing comparisons with his government's recent tax reforms. Modi claimed that if former Prime Minister Indira Gandhi were in power today, individuals earning Rs 12 lakh annually would have had to pay as much as Rs 10 lakh in taxes. He contrasted this with his government's reforms, which now exempt those earning up to Rs 12 lakh from paying any income tax.
Modi emphasized the high tax rates during the tenure of Jawaharlal Nehru and Indira Gandhi, pointing out that in Nehru's time, individuals earning Rs 12 lakh would have paid 25% of their income in taxes. Under Indira Gandhi's government, according to Modi, up to Rs 10 lakh of a Rs 12 lakh salary would have been taxed.
He also criticized the taxation policies of Congress in more recent years, noting that just 10-12 years ago, during Congress rule, individuals earning Rs 12 lakh would have had to pay Rs 2.6 lakh in taxes. He underscored the impact of the BJP government's new budget, which exempts those earning Rs 12 lakh from paying taxes.
The remarks came following the presentation of the Union Budget 2025-26 by Finance Minister Nirmala Sitharaman, which introduced significant tax relief. Under the new tax regime, individuals earning up to Rs 12 lakh annually are exempt from paying income tax, with new tax slabs set as follows:
- 0-4 lakh rupees: Nil
- 4-8 lakh rupees: 5%
- 8-12 lakh rupees: 10%
- 12-16 lakh rupees: 15%
- 16-20 lakh rupees: 20%
- 20-24 lakh rupees: 25%
- Above 24 lakh rupees: 30%
This tax relief is part of the BJP's ongoing efforts to reduce the tax burden on middle-class and salaried citizens, contrasting their approach with the heavy tax policies of previous Congress governments.
