PM Modi announces zero income tax up to Rs 12 lakh, next-generation reforms in I-Day address

NEW DELHI: Prime Minister Narendra Modi, in his Independence Day speech on Friday, highlighted Indias journey towards self-reliance and transformation, stating that over the past decade, the country has been reforming, performing, and transforming. He announced a landmark move of zero tax for annual income up to Rs 12 lakh, a benefit that many could not have imagined even a few years ago. The measure, aimed at providing relief to taxpayers, was accompanied by a series of reform initiatives to modernise governance and boost economic growth. PM Modi said the time had come to move forward with even greater strength, emphasising the governments commitment to building a modern, efficient, and citizen-friendly ecosystem, where laws, regulations, and processes are simplified, entrepreneurship is encouraged, and every Indian is enabled to contribute to building a Viksit Bharat. Highlighting a historic wave of reforms in recent years, he noted that the government had scrapped over 40,000 unnecessary compliances and repealed more than 1,500 outdated laws. Dozens of other laws have also been simplified in Parliament, with the interests of citizens always prioritised, he said. In the most recent parliamentary sessions alone, more than 280 provisions were removed. Modi stressed that reform is not just about economics, it is about transforming the everyday lives of citizens. He made key announcements concerning income tax reform and faceless assessment, aimed at making the system more transparent and efficient. Further, he spoke about replacing outdated criminal laws with the Indian Justice Code, which he said would simplify justice and legal procedures. According to the Prime Minister, this change would lead to fairness, simplicity, and empowerment. From Sudarshan Chakra defence system to demographic mission: Key takeaways from PM Modis I-Day speech Underscoring Indias dedication to structural, regulatory, policy, process, and procedural reforms, Modi said the vision was to build a nation where governance serves the people, not the other way around. He elaborated that the governments reforms aim to reduce compliance costs for start-ups, MSMEs, and entrepreneurs, while also ensuring freedom from the fear of outdated legal provisions. This creates a more conducive environment for business growth, encouraging innovation and economic self-reliance, he added. The Prime Minister announced the formation of a Task Force for Next-Generation Reforms, which will evaluate all current laws, rules, and procedures related to economic activities. It will operate within a set timeline to reduce compliance costs for start-ups, MSMEs, and entrepreneurs, and provide freedom from the fear of arbitrary legal actions. These reforms aim to foster a supportive ecosystem for innovation, entrepreneurship, and economic development, he said. He declared the formation of a dedicated Reform Task Force to spearhead the next wave of economic reforms, with core objectives including accelerating growth, cutting bureaucratic red tape, modernising governance, and preparing the country for the challenges of a USD 10 trillion economy by 2047. Modi further announced that the upcoming introduction of Next-Generation GST reforms by this Diwali would reduce taxes on daily-use items. The government will bring Next-Generation GST reforms, which will bring down the tax burden on the common man. It will be a Diwali gift for you, he assured, reaffirming that these reforms are designed to benefit citizens directly and stimulate economic activity. Laying out his vision for Indias future, Modi reiterated that instead of focusing on others limitations, India must extend its own line of progress. He added, In a world of rising economic self-interest, the focus must be on strengthening Indias capabilities, expanding opportunities, and empowering citizens. These reforms mark the beginning of an accelerated phase of governance transformation, ensuring India is more resilient, inclusive, and globally competitive. 'Standing like wall' to protect interests of farmers, herders, fishermen: PM Modi on US trade talks