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Kolkata: The Union Budget 2025 has brought major financial relief to middle-class salaried individuals, thanks to revised income tax slabs and lower interest rates on loans.

Finance Minister Nirmala Sitharaman has reshaped income tax rates, allowing taxpayers to keep more of their earnings. Meanwhile, the Reserve Bank of India (RBI) has also cut the Repo Rate for the first time in five years, which will reduce EMIs on home, car, and personal loans.

Repo Rate Cut: Lower EMIs & Increased Disposable Income

The RBI has trimmed the Repo Rate by 25 basis points, and experts predict a total cut of 75 basis points this year. This will:
Lower existing EMIs on home, car, and personal loans
Reduce the cost of new loans
Put extra cash in the hands of borrowers

New Income Tax Slabs: How Much Will You Save?

The Budget 2025 tax reforms ensure that anyone earning up to ₹12 lakh per year will pay no income tax. When factoring in the ₹75,000 standard deduction, even those earning ₹12.75 lakh annually will be tax-free.

Income Tax Savings for FY26:
₹83,200 saved for taxable income of ₹12.75 lakh
₹32,500 saved for taxable income of ₹15 lakh
₹40,300 saved for taxable income of ₹16 lakh
₹85,800 saved for taxable income of ₹20 lakh
₹1,14,400 saved for taxable income of ₹25 lakh

This means higher disposable income, and when combined with lower EMIs, the savings could be even greater.

Maximizing Savings: Invest in Mutual Fund SIPs

With extra savings from tax relief and EMI reductions, investing in a Systematic Investment Plan (SIP) in mutual funds can be a smart move.

Why SIPs?
Works in all market conditions (no need to time the market).
Historically provides returns of 15-20% over the long term.

Potential Wealth Growth with ₹5,000 Monthly SIP

  • ₹4,48,408 in 5 years (assuming 15% annual return).
  • ₹13,93,286 in 10 years.
  • ₹33,84,315 in 15 years.

Key Takeaway: You can build wealth just from your tax savings, without making lifestyle sacrifices. However, consulting an investment expert before investing is always advisable.

A Stronger Financial Future for the Middle Class

The Union Budget 2025 provides a significant financial boost for salaried taxpayers, enabling them to save more, borrow at lower rates, and invest wisely. With the right financial strategy, this budget can help secure long-term wealth growth for millions of Indians. 

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