The middle class in India finally got some much-needed tax relief in this year’s budget. With an income of ₹12.75 lakh (including standard deductions – under the new regime) drawing no tax (don’t get confused – this is not a full exemption but a tax rebate), a huge portion of salaried taxpayers will now have more cash in hand.

For the past few years, the cost of living in cities has skyrocketed—rents, school fees, and daily expenses have gone up much faster than the national average inflation. At the same time, salary growth has slowed, making it harder for people to keep up. This left the middle class struggling, with two tough choices—either cut down on savings or reduce everyday spending.

When savings shrink, future financial security becomes uncertain, especially for salaried professionals who need to plan for retirement. But when lifestyle expenses are reduced too much, it affects quality of life and happiness. This budget helps address both.

👉 For those who focus on saving, it puts more money in their hands to invest and build long-term wealth.
👉 For those who want to spend, it gives them the freedom to reclaim a better lifestyle.

I am especially happy for mid-age working couples with kids, who were struggling to manage metro life even with dual incomes. If both spouses work, this tax relief allows them to have a combined ₹25.5 lakh of tax-free income—a number that covers a large portion of India’s middle class.

⚙️ So, what’s next?
Take a balanced approach—invest some of this additional money into slightly riskier assets for long-term wealth creation while also revisiting some of the expenses that were cut to make ends meet.

Maybe that long-pending year-end family vacation doesn’t have to wait! 😀