After Finance Minister Nirmala Sitharaman provided much-needed tax relief to the middle class in the Union Budget 2025-26, Complete Circle Chief Investment Officer Gurmeet Chadha called for stronger tax compliance, particularly among individuals and businesses who underreport income despite lavish lifestyles.
“Now it’s our turn to respond. I know so many people who live in posh colonies, driving Mercs, spending lavishly & filing returns of 10-15 lakh income. Many businesses doing cash sales and avoiding GST and income tax. We can’t demand our rights but fail on our duties. Govt should use tech, get cracking. Widen the net!!” Chadha said.
His remarks come a day after Finance Minister Sitharaman announced significant tax relief for the middle class, exempting annual incomes up to Rs 12 lakh from income tax under the new regime, while also rejigging tax slabs. The move, aimed at boosting consumption in a slowing economy, was welcomed by industry leaders but also sparked discussions about the need to broaden the tax base.
While the tax cuts are expected to provide immediate relief and stimulate demand, Chadha’s comments highlight a persistent issue—tax evasion among segments of the population with visibly high spending but low reported incomes. He urged the government to leverage technology to improve tax collection and ensure that those who should be contributing their fair share are brought into the tax net.
Other industry leaders also weighed in on the Budget. Uday Kotak, founder of Kotak Mahindra Bank, called it “a budget for steady fiscal consolidation,” adding that the middle-class tax relief should help boost consumption. “A budget for steady fiscal consolidation. A tax sweetener for the middle class should help consumption.Welcome steps to improve ease of doing business,’ Kotak wrote on X.
RPG Group Chairman Harsh Goenka likened the Budget to a “Mahakumbh,” stating that it “trumps consumption woes, putting money in the hands of the middle class.” Vedanta Group Chairman Anil Agarwal praised the Budget for making incomes up to Rs 12 lakh tax-free, calling it a decisive move towards a simpler, more transparent tax system. He highlighted the government’s focus on sectors like mining, agriculture, and manufacturing, which are poised to create jobs and reduce import dependency.