Middle Class in Focus: Government Expands Tax Relief & Pension Benefits in 2025
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🏠 Middle Class in Focus: Middle-Class Tax Relief in India Sees Major Boost in 2025
Middle Class in Focus in India's middle-income families are firmly in focus as the central government highlights its efforts to ease financial pressure through pension reform, tax relief, and improved urban infrastructure. As the NDA government completes one year in its third term, its message is clear: the middle class will be empowered and protected.
Let’s look at how recent announcements will benefit this segment.
🧾 Tax Relief for Salaried Individuals
In a major win for the salaried class, the Union Budget FY 2025–26 introduced zero tax liability for individuals earning up to ₹12 lakh annually (excluding special incomes like capital gains). With a standard deduction of ₹75,000 now applicable, even those earning up to ₹12.75 lakh will pay no income tax.
This move offers direct savings for working professionals. If you're unsure how this applies to you, our Personal Income Tax Filing and Advance Tax Filing services ensure you claim your full benefits and avoid overpayment.
🧓 Unified Pension Scheme (UPS): Assured Retirement for 2.3 Million Employees
The new Unified Pension Scheme (UPS) is a hybrid model offering:
50% assured pension on last year's average basic salary (if 25+ years of service)
Minimum assured pension of ₹10,000 per month for employees with 10+ years of service
60% family pension if the employee passes away
This reform extends retirement security to more than 2.3 million central employees, with states adopting the model as well. Planning your retirement? We help with Income Tax Valuation, Capital Gain Valuation, tailored for salaried individual.
🏙 Smart Cities and Infrastructure Progress
Another area where the middle class benefits directly is through urban development. Under the Smart Cities Mission, 93% of the 7,545 projects launched in 2015 have been completed by 2025 — a ₹1.51 trillion investment improving roads, drainage, green spaces, and digital services in urban zones.
💡 Middle Class – Backbone of the Economy
From income tax relief to urban housing upgrades and secure pensions, the government's 2025 roadmap positions the middle class as a key driver of India's future. These policies also align with the need for greater Tax Planning and Accounting & Bookkeeping services for families navigating rising incomes and expenses.
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