No Tax on Income of Rs 15 Lakh: No tax on income of Rs 15 lakh might soon become a reality for many Indians, and it is already making waves among taxpayers. With the Union Budget just around the corner, expectations are high. The government is under pressure to bring relief to the middle class, especially salaried individuals who feel the heat of rising expenses every single day. If you fall into this income category, the latest developments could mean a significant change in how much tax you actually pay.
The talk about no tax on income of Rs 15 lakh is not just speculation. Several news reports and expert discussions hint that this move is seriously being considered. If implemented, this change could ease the burden on countless families who currently find themselves squeezed between rising living costs and existing tax slabs. This article explores everything you need to know about the potential update, what is being proposed, and how it might affect your financial planning this year.
No Tax on Income of Rs 15 Lakh: What It Could Mean For You
If you earn between Rs 10 lakh and Rs 15 lakh annually, you already know how much of your income gets eaten up by taxes. As of now, income in this range is taxed anywhere between 15 to 20 percent, depending on the slab and the regime you choose. But now, the government is considering a major tax relief that could either reduce or completely waive tax for this bracket. The idea behind no tax on income of Rs 15 lakh is not just to help the taxpayer save more but also to support the economy through increased consumer spending. With everything from fuel to food getting costlier, this relief could finally balance things out for middle-class earners. It is more than a financial adjustment; it is a step toward giving breathing space to those who carry the weight of monthly expenses, EMIs, and rising inflation.
Overview Table: What You Need to Know
| Topic | Details |
| Proposed Tax Change | No tax or reduced tax on income up to Rs 15 lakh |
| Current Tax on Rs 10–12 Lakh Income | 15 percent |
| Current Tax on Rs 12–15 Lakh Income | 20 percent |
| Income Above Rs 15 Lakh | Taxed at 30 percent |
| Likely Announcement Date | February 1, 2026 |
| Finance Minister’s Preparation | Budget meetings with experts ongoing |
| Previous Standard Deduction (2023) | Raised from Rs 50,000 to Rs 75,000 |
| Who Benefits Most | Salaried middle class, small business earners |
| Related Sectors to Benefit | Real estate, auto, retail |
| Public Demand | High – citizens seeking relief from tax burden |
Big relief for the middle class
The middle class in India has long shouldered a large share of the tax burden without seeing equivalent returns in relief. Most salaried individuals in the Rs 10 to 15 lakh income range often feel stuck. They earn too much to qualify for many subsidies or benefits, but not enough to comfortably absorb high taxes, rising rents, EMIs, school fees, and daily living costs. Any proposal that aims to eliminate or reduce tax on this income group is bound to bring big relief.
The idea of no tax on income of Rs 15 lakh has emerged as a potential game-changer. If approved in the Union Budget 2026, it could put more money directly into the hands of taxpayers. This is not just about easing personal budgets. It is also expected to help revive demand in sectors like housing, consumer electronics, and even education, where people might start spending more freely. The buzz is growing, and all eyes are now on the Finance Minister.
Finance Minister Nirmala Sitharaman meets experts
As the government prepares for its first full budget in its third term, Finance Minister Nirmala Sitharaman has been holding consultations with industry experts, economists, and tax professionals. These meetings are not routine check-ins. They are being seen as crucial brainstorming sessions where the core focus is on how to ease the pressure on the average taxpayer.
The timing could not be better. With inflation still biting into household incomes, people are hoping for tax reforms that are practical and people-friendly. The Finance Minister’s meetings indicate that the government is listening, and the hope is that these discussions will translate into meaningful announcements, including the much-anticipated no tax on income of Rs 15 lakh.
Income tax relief and benefits for car and home buyers
Alongside the proposal for tax relief on income, reports suggest that the upcoming budget may also bring benefits for those planning to buy a house or a car. These are big-ticket items that many middle-income families aspire to own, but often delay due to financial pressure. The government might offer new exemptions or deductions that make these purchases easier.
Providing tax benefits for home loans or vehicle loans would encourage more people to invest in real estate and automobiles. These moves not only help individuals but also give a push to the economy. The hope is that the combination of no tax on income of Rs 15 lakh and sector-specific benefits will offer a double advantage to hardworking families.
Relief on income up to ₹15 lakh
Currently, the existing tax system is divided between the old regime with deductions and the new regime with lower rates but fewer exemptions. In both, people earning between ₹10 lakh and ₹15 lakh face a significant tax outgo. The push now is to either lower these rates or give full exemption up to ₹15 lakh under one of the regimes.
This proposed relief is not only based on economic need but also on public demand. Households are spending more on essentials like food, transport, and utilities, leaving less room for savings. A change that brings no tax on income of Rs 15 lakh would allow families to plan better, invest more in health or education, and maybe even improve their standard of living.
Experts’ recommendations
Tax consultants and economists have been vocal about the need to adjust income tax slabs in line with inflation and modern living costs. They argue that the existing slabs are outdated, especially for urban taxpayers. While some changes were made in recent budgets, like increasing the standard deduction, those were not enough for those in the mid-income segment.
The expert recommendation is clear: reduce the tax burden on incomes up to ₹15 lakh, either through lower rates or by introducing new deductions. This is being seen as a fair and timely demand, one that aligns with the rising cost of living and limited wage growth in many sectors. The upcoming budget might just be the moment this demand is finally addressed.
FAQs
1. What is the current tax rate for income between ₹12 lakh and ₹15 lakh?
Right now, this income is taxed at 20 percent under most tax regimes.
2. Is there a confirmed update about no tax on income of Rs 15 lakh?
There is no official confirmation yet, but multiple reports and expert discussions suggest it is under serious consideration.
3. Who stands to benefit the most from this proposed tax relief?
Salaried middle-class individuals and small business owners earning up to ₹15 lakh annually would benefit the most.
4. Will this change apply to both old and new tax regimes?
It is not confirmed yet, but the new regime is more likely to be updated since it has been the focus of recent budget changes.
5. When will the final decision be announced?
The full Union Budget will be presented on February 1, 2026, when the government will officially announce any tax changes.