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Union Budget 2026: What the middle class gains despite no income tax slab changes

Union Budget 2026 retains income tax slabs but offers indirect relief to the middle class through TCS cuts, simpler tax filing, cheaper medicines and higher job-creating expenditure.

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Union Budget 2026: what the middle class gains despite no income tax slab changes

Union Budget 2026 may not have delivered direct income tax relief to salaried taxpayers, but the government has introduced several indirect measures aimed at easing financial pressure on middle-class households.

While tax slabs remain unchanged, the Budget outlines steps to simplify compliance, reduce taxes on overseas spending, lower the cost of essential medicines, and support job creation through higher public spending.

Income tax status quo continues

The government has retained the existing income tax framework for individuals. Annual income up to Rs 12 lakh continues to remain tax-free, and with the Rs 75,000 standard deduction, effective tax-free income rises to Rs 12.75 lakh.

No changes have been announced in income tax slabs, signalling policy continuity rather than immediate relief for salaried taxpayers.

Compliance relief and tax rationalisation measures

A key focus of Budget 2026 is reducing compliance burdens and improving the taxpayer experience.

The government has proposed a reduction in Tax Collected at Source (TCS) on overseas tour programme packages to 2%, down from the earlier rates of 5% and 20%. TCS under the Liberalised Remittance Scheme (LRS) for education and medical expenses has also been cut to 2% from 5%, providing relief to families sending money abroad for essential purposes.

To ease return filing pressure, timelines have been staggered. Individual taxpayers filing ITR-1 and ITR-2 can continue to file returns till July 31, while non-audit businesses and trusts will now get time till August 31.

Protection for small investors

The Budget proposes taxing all share buybacks as capital gains instead of dividends, a move aimed at protecting minority retail investors.

In another relief measure, interest awarded by Motor Accident Claims Tribunal (MACT) to individuals will be exempt from income tax, and the applicable TDS will be removed.

A single-window system will also be introduced for submitting Form 15G and Form 15H through depositories for TDS on dividends and interest, simplifying compliance for senior citizens and small savers.

Cheaper medicines and essential products

Healthcare costs may ease slightly as the government has announced duty exemptions on about 17 cancer medicines. Personal imports of medicines for seven rare diseases will also be allowed duty-free.

In addition, customs duty relief has been extended to critical components used in the manufacture of microwave ovens, television equipment, leather goods and footwear, which could help moderate consumer prices.

Job creation through higher spending

The government has raised capital expenditure to over Rs 12 lakh crore, with allocations for railways, tourism, logistics and technology sectors. These investments are expected to support employment generation and long-term economic activity, indirectly benefiting middle-class households.

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Omar Abdullah hits back at BJP over Rs 100 crore legal notice, says party is hiding behind court

Omar Abdullah has responded to the BJP’s Rs 100 crore legal notice, accusing the party of avoiding political debate and announcing legal action against BJP leaders.

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Jammu and Kashmir Chief Minister Omar Abdullah on Monday responded sharply after receiving a Rs 100 crore legal notice from the Bharatiya Janata Party (BJP), accusing the party of avoiding a political confrontation by taking the matter to court.

The BJP’s notice demands that Abdullah either apologise or provide evidence to support his allegation that BJP leaders had offered between Rs 20 crore and Rs 30 crore to National Conference (NC) legislators to persuade them to switch sides.

Omar Abdullah calls legal notice a ‘love letter’

Speaking to reporters in Srinagar, Abdullah said he had received an electronic copy of the legal notice and described it as a “love letter” from the BJP.

He said he viewed the notice as a sign that the BJP considered him a significant political opponent.

“I am perhaps the only politician who has been bestowed with a ‘love letter’ like this by the BJP. I consider this a mark of respect that I am obviously a political force they cannot ignore,” Abdullah said.

Says BJP chose court over political response

Abdullah criticised the BJP for pursuing legal action instead of responding politically to his allegations.

He said he deliberately made the remarks at a political event rather than in the Assembly, where statements are protected from legal challenge, because he expected a political rebuttal.

According to Abdullah, the BJP’s decision to approach the court reflected its style of handling political disputes.

National Conference to initiate legal action

The Chief Minister also announced that the National Conference would begin issuing legal notices to BJP leaders in Jammu and Kashmir over what he described as unfounded and defamatory allegations against his party.

He said senior BJP leaders had been making slanderous remarks against the National Conference over the past few months and that the party would now respond through legal channels.

Abdullah added that the National Conference would serve legal notices to those leaders and see how the legal process unfolds.

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PM Modi to visit Punjab on July 17, launch railway projects as BJP prepares for solo poll battle

Prime Minister Narendra Modi will visit Punjab on July 17 to inaugurate the redeveloped Jalandhar Cantonment Railway Station and launch key railway projects as the BJP prepares to contest future elections independently in the state.

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Prime Minister Narendra Modi will visit Punjab on July 17 to inaugurate and lay the foundation for multiple railway projects, marking his first visit to the state since the Bharatiya Janata Party (BJP) decided to contest future elections independently in Punjab.

During the visit, the Prime Minister will inaugurate the redeveloped Jalandhar Cantonment Railway Station, which has been modernised under the Centre’s Amrit Bharat Station Scheme. The 110-year-old station is among 75 railway stations across the country scheduled to be inaugurated as part of the government’s railway modernisation programme.

The redevelopment aims to improve passenger amenities, enhance station accessibility and transform railway stations into modern transport hubs.

New train service between Jalandhar and Varanasi

Apart from inaugurating the upgraded station, PM Modi will also lay the foundation stone for the Shri Guru Ravidass Ji Maharaj Express, a new train service connecting Jalandhar and Varanasi.

Named after Guru Ravidass Ji Maharaj, the train is intended to strengthen connectivity between Punjab and Varanasi, where the revered saint spent a significant part of his life. Guru Ravidass is widely respected for promoting equality and social justice, and his teachings continue to hold special significance in Punjab, particularly among the Scheduled Caste community.

Visit comes amid changing political landscape

The Prime Minister’s visit comes at a time when political activity has intensified in Punjab ahead of the upcoming Assembly elections.

The BJP recently announced that it would contest future elections in Punjab without entering into alliances, making this visit politically significant as the party seeks to strengthen its independent presence in the state.

Party leaders have projected the visit as development-focused, highlighting infrastructure initiatives and improved connectivity. In social media posts, Punjab BJP leaders welcomed the Prime Minister and described the visit as an important occasion for the state.

Security and preparations underway

Authorities have stepped up preparations for the Prime Minister’s programme in Jalandhar. Security arrangements are being reviewed while logistical preparations at the railway station are underway to ensure the smooth conduct of the visit.

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Rs 1,160 crore rice diversion case widens, 56 mills and 22 ethanol plants under investigation

Authorities have expanded the alleged Rs 1,160 crore government rice diversion investigation, bringing 56 rice mills and 22 ethanol plants under scrutiny over suspected misuse of subsidised rice meant for ethanol production.

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Government agencies have widened their investigation into an alleged Rs 1,160 crore rice diversion case, bringing 56 private rice mills and 22 ethanol plants across 17 districts under scrutiny. The probe is focused on determining whether subsidised government rice allocated for ethanol production was diverted through private mills instead of being used for its intended purpose.

Investigation expands after truck found at private rice mill

The investigation began after a truck transporting government rice from a Food Corporation of India (FCI) warehouse to an ethanol plant was allegedly found inside a private rice mill. What initially appeared to be an isolated incident has now expanded into a multi-district probe involving 17 seized trucks, over 50 witness statements and multiple accused.

Authorities are trying to establish how much of the nearly 5 lakh metric tonnes of government rice supplied to ethanol plants was actually converted into ethanol and whether a portion of it was diverted before returning to government warehouses.

Alleged circular trade under investigation

Investigators suspect that subsidised rice supplied to ethanol plants at around Rs 2,320 per quintal may have been sold to private rice mill operators at higher prices instead of being processed into ethanol.

According to the investigation, the rice was allegedly repacked by private mills and deposited back into government warehouses as custom-milled rice. Officials are also examining whether the original paddy supplied for milling was sold separately in the open market or transported to other states, potentially allowing multiple profits from the same stock.

Authorities believe the alleged arrangement, if established, could have enabled financial gains at several stages while avoiding actual ethanol production.

Officials examining monitoring failures

The investigation is also looking into whether lapses in monitoring or possible collusion allowed government rice to re-enter official warehouses without proper verification.

Officials are checking whether rice previously released under the ethanol scheme was accepted again as newly milled stock through the custom milling system.

Police register FIR, arrest four accused

Balaghat Superintendent of Police Aditya Mishra said the case began after authorities received information about three trucks carrying government rice from FCI warehouses to the AVJ Agrico ethanol plant. During a joint inspection by Revenue, Food and Police officials, one truck was allegedly found inside Sancheti Rice Mill, leading to the registration of an FIR for cheating.

A Special Investigation Team (SIT) comprising 20 to 25 members was subsequently formed.

According to the police, investigators have so far:

  • Arrested four people
  • Identified more than 13 accused
  • Recorded statements of over 50 witnesses
  • Issued notices to 56 rice mills
  • Seized 17 trucks
  • Obtained non-bailable warrants against two individuals

Police said the investigation remains ongoing and further action will be taken based on new evidence.

Production records and transport data under verification

Investigators are comparing FCI dispatch records with ethanol production data, transport logs, warehouse receipts and custom milling records.

Authorities are also examining production capacity, electricity consumption, machinery usage and raw material records at ethanol plants to verify whether the quantity of rice supplied matches actual ethanol output.

Similar verification is underway at rice mills to determine whether their claimed milling operations correspond with electricity consumption, labour deployment and machinery records.

Use of fortified rice raises additional questions

The case has drawn additional attention because the grain under scrutiny was fortified rice, which is enriched with iron, folic acid and Vitamin B12 to help address anaemia and malnutrition among children, pregnant women and adolescent girls.

Investigators are examining why fortified rice was supplied for ethanol production when distilleries generally use broken rice as feedstock. They are also looking into whether FCI followed stock rotation norms while allocating rice under the scheme.

Collector sought wider scrutiny

Confidential communications from the Balaghat Collector reportedly recommended verification of whether rice released for ethanol production actually reached the designated plants. The Collector also sought scrutiny of the allocation process, transportation chain, utilisation certificates and the roles of FCI officials, ethanol companies, transporters and rice mill owners.

The investigation currently covers nearly 5 lakh metric tonnes (50 lakh quintals) of government rice, valued at approximately Rs 1,160 crore at the subsidised allocation price.

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