Shaadi.com founder and Shark Tank India star Anupam Mittal has criticised the new tax regime, claiming that only 1 crore people out of India’s 140 crore population will pay taxes in the financial year 2025-26, effectively making India “income tax-free.”
In a post on X, Mittal explained that 90% of tax filers in India have an income below Rs 13 lakh per annum, leading to his conclusion that only a small fraction of the population would contribute to the national income tax pool.
“Turns out that almost 90% tax-filers in India have an income below 13 lacs p.a. meaning out of 140 cr people only 1 cr will pay income tax this year effectively making India income-tax free,” reads Mittals’ post on X.
Anupam Mittal also called the new tax regime a “systemic correction” rather than just a tax cut. Taking to LinkedIn, he argued that a strong economy relies on an empowered middle class, not one burdened by excessive taxation. Drawing comparisons with the US and China, he noted that India’s salaried taxpayers were previously squeezed instead of encouraged to spend and invest. The Budget, he said, changes this by boosting disposable income, which can enhance lifestyles, savings, and investments. Summing up the impact, he wrote, “More income = More spending = More growth. Wealth fuels economies.”
The Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman, introduced significant changes to India’s tax slabs. The minister announced that individuals earning up to Rs 12 lakh would pay no tax, but this was widely misinterpreted. While there is a tax rebate, income up to Rs 12 lakh is not tax-exempt, but tax-free after deductions and rebates.
The 87A rebate has been increased from Rs 25,000 to Rs 60,000 for individuals earning up to Rs 12.75 lakh, which offsets the entire tax liability. Additionally, a standard deduction of Rs 75,000 is available, further reducing the tax burden. For someone with an income of Rs 12.75 lakh, after applying these deductions, their final tax liability remains zero.
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