Income Tax: No Tax on Income of Rs 15 Lakh, Big News for Taxpayers

No tax on income of Rs 15 lakh is the news everyone is talking about. With the Union Budget 2026 just around the corner, this possible update has created a wave of excitement among middle-income taxpayers across India. It is more than just a headline. It is a sign that long-awaited relief might finally be on its way, especially for salaried individuals and small business owners who have been bearing the brunt of rising expenses.

The idea of no tax on income of Rs 15 lakh has sparked hopes for a fairer and more supportive tax system. It could mean more money in hand, less stress at tax time, and a chance to breathe easier every month. In this blog, we will break down what this proposal means, who it will impact the most, and why this move could be a financial game-changer for millions.

No Tax on Income of Rs 15 Lakh: Why It Is a Big Deal Right Now

For a long time, taxpayers earning between Rs 10 lakh and Rs 15 lakh have felt stuck. They earn too much to qualify for benefits but not enough to absorb the high taxes and cost of living. The government is now considering a new plan where income up to Rs 15 lakh could either be taxed at a much lower rate or not taxed at all. If this happens, it would offer major relief to this often-overlooked segment of earners.

This change is not just about saving money. It is about giving the middle class a real chance to build a better future. With inflation making essentials more expensive, a tax break could free up funds for housing, education, healthcare, or investments. The idea behind no tax on income of Rs 15 lakh is to support working individuals who contribute heavily to the economy but often get the least in return. This is why all eyes are on the upcoming Budget 2026.

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 (Rs 10–12 Lakh)	15 percent
Current Tax (Rs 12–15 Lakh)	20 percent
Income Above Rs 15 Lakh	Taxed at 30 percent
Likely Announcement Date	February 1, 2026
Finance Minister’s Action	Budget consultations with experts ongoing
2023 Standard Deduction	Increased from Rs 50,000 to Rs 75,000
Main Beneficiaries	Salaried and small business taxpayers
Sectors Expected to Benefit	Housing, automobile, retail
Public Response	High demand for middle-class tax relief

Big relief for the middle class

The middle class has carried a heavy tax burden without getting much help in return. Rising expenses, fixed incomes, and the lack of targeted relief have made managing money harder every year. Most people earning between Rs 10 lakh and Rs 15 lakh do not qualify for government schemes and end up paying a significant part of their income in taxes.

The proposed no tax on income of Rs 15 lakh would be a welcome change. It would put more money directly in people’s hands, giving them the ability to manage daily expenses more easily. This tax relief is also expected to fuel consumer spending, which helps grow the economy. The middle class is finally being seen and heard, and this proposal could be the breakthrough they have been waiting for.

Finance Minister Nirmala Sitharaman meets experts

As the government prepares its first full budget of the new term, Finance Minister Nirmala Sitharaman has been meeting with economists, industry leaders, and tax professionals. These meetings are focused on understanding the needs of common taxpayers and designing solutions that bring real results.

The proposal for no tax on income of Rs 15 lakh is one of the key suggestions being discussed. This shows that the government is serious about making the tax system more fair and aligned with today’s financial realities. If the Finance Minister includes this update in the budget, it will send a strong message that the government is committed to supporting its working citizens.

Income tax relief and benefits for car and home buyers

The proposed tax change might not be the only big news. There are also talks about offering benefits for those planning to buy homes or vehicles. These are major purchases for most middle-class families, and getting some tax relief on loans or down payments could be a big motivator.

By combining no tax on income of Rs 15 lakh with specific incentives for housing and automobile buyers, the government could encourage more spending in key sectors. This approach would support both individual financial growth and national economic development. Families could finally take that step toward owning a home or upgrading their vehicle without the extra financial pressure.

Relief on income up to ₹15 lakh

At present, income up to ₹15 lakh is taxed under two regimes — the old regime with exemptions and the new one with lower rates but fewer deductions. Both systems still result in a noticeable tax burden for those in the ₹10 to ₹15 lakh range.

The move toward no tax on income of Rs 15 lakh reflects the need for an updated approach. It is not just about numbers. It is about creating a system that reflects current costs, lifestyle needs, and the challenges people face in 2026. If income up to ₹15 lakh becomes tax-free or gets a lower rate, it will offer true relief that many have been hoping for.

Experts’ recommendations

Financial experts have been raising concerns about outdated tax slabs that do not match modern economic conditions. With inflation cutting into real income and slow wage growth in many sectors, current tax rates feel unfair to many earners.

Tax consultants suggest that either full exemption or a big cut in tax rates for income up to ₹15 lakh would make a real difference. They also recommend fresh deductions to help families manage health, education, and housing costs. Including no tax on income of Rs 15 lakh in Budget 2026 could align with these expert recommendations and bring much-needed balance to the system.

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