Budget 2025 Income Tax: Top 10 Expectations for Salaried Taxpayers – Slab Changes, Deductions & Exemptions
Income- tax changes, prospects from Union Budget 2025 Following are the prospects of the public about whether the Union Budget 2025 will bring duty concessions for the salaried class as well as the middle class through the Finance Minister Nirmala Sitharaman.
Budget 2025 Income Tax: Top 10 Expectations for Salaried Taxpayers – Slab Changes, Deductions & Exemptions
Will Budget 2025 offer advanced standard deduction under new tax governance?
In the days leading up to the Union Budget 2025 which is scheduled to be delivered on February 1, there is a high level of hope that the government would increase the standard deduction amount for the salaried taxpayers and pensioners to ₹1 lakh per annum from the current ₹75,000 in the new tax regime.
Industry Expects Cap Gains Exemption of ₹ 2 Lakh
"The exemption limits for Long-Term Capital Gains (LTCG) on equities set at ₹1.25 lakh currently could be increased to ₹2 lakh or higher, which would be a strong positive if realized as it would allow the investors to keep a greater portion of their returns," says Aakash Uppal, Partner at BDO India speculating on the industry expectations.
Section 80C to 80D: Forecasts on Tax Write-offs to Come in New Tax Regime
According to income tax slab, Budget 2025 is supposed to introduce the following renowned deductions in the New Tax Regime:
- Section 80C: Deductions up to ₹2 lakh for the life insurance premiums, employees' Provident Fund contributions, etc.
- Section 80D: standard deduction up to ₹1 lakh for health insurance premiums for me and my family, which deals with the increasing burden of healthcare costs.
Tax changes for new homebuyers
Usha Vasudeva, Director (India-Europe and U.S.), BLB Limited said, the government should rename PMAY as it has been a scam management program for a long time.
The tax expert believes that phasing out the old tax regime and providing a higher exemption in the new regime are the factors to be expected.
Here's what Aakash Uppal, Partner at BDO India has to say; "Under the present tax regime, individuals with annual earnings up to ₹5 lakh are exempt from income tax. The new tax regime has raised this limit to ₹7 lakh for enjoying tax-free income". Consequently, this is a move aimed at relieving the taxpayer the more of his or her tax liabilities.
