<h1>Income Tax Cuts Announced to Boost Demand; Exemptions for Earnings Up to Rs 12.75 Lakh, Aiming 6.8% Growth</h1> The Economic Affairs Secretary announced significant income tax cuts aimed at stimulating demand and growth, with a projected nominal GDP growth of 10.1% for the next financial year. The Finance Minister revealed that individuals earning up to Rs 12.75 lakh annually will be exempt from taxes, benefiting 1 crore taxpayers, though costing the exchequer Rs 1 lakh crore. The Union Budget addresses domestic challenges to boost consumption and private sector investment, targeting a growth rate of 6.8%. The Economic Survey forecasts a growth rate of 6.3-6.8% for 2025-26, supported by a strong external account and fiscal measures.