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Hans India
9 hours ago
- Business
- Hans India
Tax reforms, pension schemes have benefited India's middle class in last 11 years
New Delhi: The last 11 years have seen steady reforms introduced by the Government to make life easier and more dignified for the middle class, with steps ranging from tax relief that leaves more money in their hands to pension schemes that promise security in the old age, according to an official statement issued on Thursday. The government has cut through red tape, simplified rules and made everyday systems work better. Be it filing taxes, buying a home, commuting to work or affording medicines, things have become simpler and more accessible. These are not scattered changes but a pattern of reforms that speak to the real concerns of ordinary citizens. The government has not only respected the hard work of the middle class but also recognised them as key drivers of India's growth, the statement said. From lowering income tax rates to simplifying returns, every move has been aligned with the core idea of letting citizens keep more of what they earn, the statement explained. The most recent tax reforms, especially those in the Union Budget 2025–26, are a clear sign that the Government has placed its trust in the middle class as a pillar of national growth. Whether it is raising the income threshold for zero tax, introducing a simplified tax regime or making return filing easier than ever, the effort has been constant and focussed. What stands out is not just the scale of reforms but the sense of fairness and recognition they carry for honest, hardworking taxpayers, the statement said. Over the past 11 years, the income tax policy has steadily provided meaningful relief. The Government raised exemption limits, introduced standard deductions, launched a simplified tax regime in 2020, and reduced paperwork. These efforts have added up to make life easier for taxpayers, the statement said. In the Union Budget 2025–26, another major change was announced. Individuals earning up to ₹12 lakh annually will now pay no income tax, except on special incomes like capital gains. With the standard deduction of ₹75,000, even those earning ₹12.75 lakh will pay no tax. The standard deduction reduces taxable income automatically by a fixed amount, easing the burden on salaried employees by lowering their overall tax liability without the need to claim multiple exemptions or submit detailed proofs. This reform will benefit crores of salaried citizens. It shows a deep understanding of middle-class needs and comes despite the Government giving up nearly ₹1 lakh crore in revenue. To make tax compliance easier, individual taxpayers are now provided with pre-filled Income Tax Returns. These returns include details like salary income, bank interest, dividends, and more. This ease is reflected in the rise of individual ITR filings, which increased from 3.91 crore in FY 2013–14 to 9.19 crore in FY 2024–25. This growth shows that more people find it simpler and worthwhile to comply with tax laws. For years leading up to 2014, rising prices kept middle-class families under constant strain. Between 2009–10 and 2013–14, inflation stayed in double digits. Essentials like food and fuel became increasingly costly, stretching household budgets and saving felt out of reach. Looking over the decade from 2004–05 to 2013–14, the average annual inflation stood at a steep 8.2 per cent. This prolonged period of price instability made everyday life harder and planning for the future uncertain. Inflation has come down to an average 5 per cent between 2015–16 and 2024–25 which has reduced the cost of living for people. Stable prices gave families breathing room. Essentials became more affordable, and planning monthly expenses became easier. This shift was the result of sound policy, strong coordination with the Reserve Bank, and better supply side management. The middle class, long hit by rising prices, finally found relief and regained confidence in the economy. In a major step to strengthen social security for government employees and their families, the Union Cabinet approved the Unified Pension Scheme (UPS) on August 24, 2024. The scheme ensures an assured pension of 50 per cent of the average basic pay drawn during the last 12 months before retirement, applicable to employees with at least 25 years of service. For those with shorter service tenures, the pension will be calculated proportionately, with a minimum qualifying period of 10 years, the statement added.
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Business Standard
11 hours ago
- Business
- Business Standard
What did Modi govt do for middle class? NDA shares 11-year report card
Marking 11 years in power, the NDA government led by Prime Minister Narendra Modi shared a report on June 5 that highlights its efforts to support the middle class. Titled The Middle Class Story: Steady Progress and Supportive Governance, the report outlines reforms across taxes, housing, healthcare, transport, skill development, and digital services aimed at improving everyday life for millions of families. Major tax reforms and pension benefits for salaried class Tax relief has been a key focus of the government. The Union Budget 2025–26 raised the zero-tax threshold to ₹12.75 lakh, benefiting millions. The standard deduction was increased to ₹75,000, allowing individuals earning up to ₹12.75 lakh to pay no tax (excluding capital gains). Pre-filled Income Tax Returns and faceless assessments have simplified filing and reduced taxpayer harassment. ITR filings increased from 3.91 crore in 2013–14 to 9.19 crore in 2024–25. The Unified Pension Scheme (UPS), launched in April 2025, offers an assured pension of 50 per cent of the average basic pay over the last 12 months, with a minimum monthly pension of ₹10,000. This is expected to benefit 2.3 million Central government employees and nearly 9 million more through state-level adoption. Urban infrastructure, housing and metro connectivity Urban development saw substantial investment under the Smart Cities Mission launched in 2015. As of 2025, 93 per cent of 7,545 approved projects have been completed, with investments crossing ₹1.51 trillion. Under the Pradhan Mantri Awas Yojana–Urban (PMAY-U), 11.6 million homes were sanctioned and over 9.272 million completed or handed over. India's metro network expanded from 248 km in 2014 to 1,013 km by 2025, serving 11.2 million daily riders. The UDAN scheme expanded air connectivity by linking 88 airports and serving 14.9 million passengers. Meanwhile, the Real Estate (Regulation and Development) Act (RERA) has helped resolve over 140,000 consumer complaints, improving transparency in housing markets. Affordable healthcare expands through Ayushman Bharat and Jan Aushadhi Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) has issued over 410 million Ayushman Cards, enabling 85.9 million hospital admissions valued at ₹1.19 trillion. Since October 2024, all senior citizens aged 70 and above are eligible for coverage, regardless of income. The Jan Aushadhi scheme expanded from 80 outlets in 2014 to over 16,469 by May 2025, offering medicines at 50–80 per cent discounts and saving ₹38,000 crore cumulatively for Indian families. Skilling, apprenticeships and ITI growth support employability The government's skilling programmes include the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which has trained 16.3 million youth, including women and marginalised communities. The National Apprenticeship Promotion Scheme (NAPS) placed 4 million apprentices with direct stipends. The number of Industrial Training Institutes (ITIs) rose from 9,977 in 2014 to 14,615 in 2025, with enrolments increasing from 950,000 to over 1.4 million. A new ₹60,000 crore National Scheme for ITI Upgradation was approved in May 2025 to modernise vocational training. Digital services grow with Aadhaar, DigiLocker and UMANG Digital governance saw dramatic expansion. Aadhaar now covers over 1.418 billion citizens, providing secure access to welfare and services. DigiLocker adoption rose to 525.1 million users, storing over 9.14 billion digital documents and reducing paperwork. The UMANG app offers over 2,297 government services to 81.9 million users, streamlining tasks such as bill payments, service requests, and health bookings.
Hindustan Times
16 hours ago
- Business
- Hindustan Times
Car loan fraud: STF Meerut busts huge racket, mastermind nabbed
The Meerut unit of UP Police Special Task Force (STF) on Wednesday arrested the mastermind of an inter-district gang that had been fraudulently financing luxury cars using fake documents and Aadhaar-linked address manipulation. The gang would then sell these vehicles at a profit without repaying the loans, defrauding banks of crores of rupees. The arrested accused, identified as Anangpal Nagar, was apprehended near Krishna Public School on Kila Parikshitgarh Road on Wednesday. The STF recovered a Toyota Fortuner worth ₹40 lakh from his possession, which had been financed fraudulently. According to STF SP Brajesh Kumar Singh, the team had been receiving inputs about a syndicate active across various banks, taking car loans using fake residential addresses—often rented houses. The gang would manipulate Aadhaar card addresses to match loan paperwork, obtain vehicle loans, and then default on repayments while secretly selling the vehicles to unsuspecting buyers. During interrogation, Nagar confessed that he used to visit multiple banks along with his associates to finance high-end vehicles. After securing the loans, they would vacate the loan-registered addresses to avoid recovery agents or legal notices. A few months later, the financed vehicles would be sold off for profit. The investigation revealed that Anangpal had even gone to the extent of creating a fake Udyam (enterprise) registration in the name of a woman friend. The bogus firm, Preeti Dairy, was registered online, using the address Flat No 601, Ansal Town, Modipuram, Meerut. To maintain a good credit score and avoid suspicion, Anangpal and his associates used fraudulent documents to open multiple bank accounts, manipulating ITRs (Income Tax Returns) and routing money transfers between accounts to create the illusion of legitimate transactions. All these accounts were opened using fake addresses. Singh stated that further inquiries are being conducted to identify and apprehend other gang members involved in the scam. The operation has exposed a well-organised network of financial fraudsters targeting the vehicle finance sector through loopholes in documentation and verification systems. Authorities have advised banks to strengthen verification protocols, especially in cases involving high-value auto loans and newly registered businesses.
Indian Express
3 days ago
- Business
- Indian Express
Income Tax Returns FY 2024-25 (AY 2025-26): Who's exempt from ITR filing based on income?
Income Tax Returns FY 2024-25 (AY 2025-26): The filing of income tax returns (ITR) has started for the financial year 2024-25 (assessment year 2025-26), and 15 September 2025 has been extended as the deadline. According to Indian tax regulations, if an individual's taxable income is less than the basic exemption amount, they are not required to file one. The maximum limit for the old tax system was Rs 2,50,000, whereas the new tax regime is Rs 3,00,000 for the fiscal year 2024-25. Furthermore, there are certain conditions where individuals must file ITR, despite their taxable income being less than the basic exemption amount. 1. If there is a Rs 50 lakh or more deposit in either one or multiple savings accounts in the previous financial year. 2. If there is a deposit of Rs 1 crore or more in one or more current accounts in either commercial or cooperative banks within a financial year. (Businesses are exempted from this requirement.) 3. If the gross annual sales turnover is more than Rs 60 lakh. 4. If professional income is more than Rs 10 lakh in the previous financial year. 5. The payment of electricity bills is more than Rs 1 lakh. 6. Individuals with Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) of Rs 25,000 or more. (For senior citizens, it has been raised to Rs 50,000.) 7. If an individual owns or benefits from any asset located outside of India, or if they hold signing authority for an overseas account. 8. Any declaration of expenditure on foreign travel that exceeds Rs 2 lakh also necessitates the filing of an ITR.
News18
29-05-2025
- Business
- News18
ITR Deadline Extension 2025: Taxpayers To Receive Over 30% More Interest On Refund?
Last Updated: If a taxpayer delays filing the ITR till September 15, the refund would be processed later -- mayby by the end of September; this longer holding period results in more interest. ITR Deadline Extension 2025: The Income Tax Department has extended the deadline for filing Income Tax Returns (ITR) for the financial year 2024-25 (assessment year 2025-26) from July 31, 2025, to September 15, 2025. While this offers more time for taxpayers to file their returns, it also comes with an interesting financial advantage — those eligible for income tax refunds may receive over 30% more interest on the refund amount. Why Tax Refunds Come with Interest Taxpayers are eligible for an income tax refund when the taxes they've already paid — such as through TDS (tax deducted at source) or advance tax — exceed their actual tax liability. As per Section 244A of the Income Tax Act, the Income Tax Department pays simple interest at the rate of 0.5% per month on the refund amount for the duration it remains with the department. For returns filed on or before the due date, interest on the eligible tax refund is calculated from April 1 of the assessment year until the refund is processed. If a return is filed after the due date, interest is calculated from the date of filing. How Deadline Extension Benefits Taxpayers With the new deadline extended to September 15, 2025, returns filed on or before this date will still be considered 'on time'. This means that taxpayers who file by the new deadline will get interest from April 1, 2025, up to the date the refund is processed — just like they would if they had filed by the original July 31 deadline. However, if a taxpayer delays filing the ITR till September 15, the refund would be processed later — potentially closer to the end of September. This longer holding period results in more interest being paid out by the Income Tax Department. Interest on the ITR refund is calculated from April 1. As the deadline has been extended by till September 15, the extra number of days (46 days) is 31.94 per cent higher as compared with 144 days (April 1-July 31). Example of Extra Interest Benefit Consider a taxpayer eligible for a refund of Rs 25,000. If the return was filed and processed by July 31, the taxpayer would have received Rs 500 as interest. But, if the return is filed by the extended deadline of September 15 and the refund is paid by September 30, the interest would rise to Rs 750, an increase of 33 per cent. Taxability Of Refund Interest Income It's important to note that the interest received on tax refunds is considered income and must be reported under the head 'Income from Other Sources' in the year it is received. However, due to the increased Section 87A rebate, taxpayers with income up to Rs 12 lakh (non-salaried) and Rs 12.75 lakh (salaried) in FY 2025-26 (AY 2026-27) may not have to pay any tax on this interest income, making the benefit effectively tax-free for many.
