As India prepares for its Income Tax Union Budget 2025 presentation on February 1, taxpayers are keenly anticipating potential changes that could impact their financial landscape. With rising costs of living and inflation concerns dominating discussions, many are looking for relief measures from Finance Minister Nirmala Sitharaman.
Recent surveys indicate that a significant majority of individual taxpayers are advocating for reforms aimed at reducing their tax burden. This article delves into what taxpayers can expect from this year’s budget regarding income tax reliefs and incentives.
Table of Contents
Key Expectations from Income Tax Union Budget 2025
Income Tax Rebate Increases
One of the most anticipated changes is an increase in income tax rebates. Currently set at ₹7 lakh for taxable income under the new regime, there are calls to raise this limit to ₹10 lakh. Such an adjustment would provide much-needed relief to middle-income taxpayers.
Revisiting Deduction Limits
Taxpayers are also hoping for revisions in deduction limits under Sections 80C and 80D:
- The current limit of ₹1.5 lakh under Section 80C has remained unchanged for over a decade.
- There are expectations that this limit may be increased significantly due to inflationary pressures.
Public Sentiment on Tax Changes
According to recent surveys conducted by Grant Thornton Bharat:
- Approximately 57% of respondents desire lower income tax rates.
- A significant portion also advocates for higher exemption limits under existing provisions.
These insights reflect a growing demand among taxpayers for more favorable tax conditions as they navigate economic challenges.
Conclusion
As India gears up for its Income Tax Union Budget 2025 presentation, taxpayers remain hopeful that their voices will be heard regarding necessary reforms. With increasing expectations surrounding income tax reliefs, all eyes will be on Finance Minister Nirmala Sitharaman as she unveils her plans on February 1.
FAQs
When is the Union Budget presentation scheduled?
The Union Budget presentation is set for February 1, 2025.
What changes are expected regarding income tax rebates?
There is anticipation of increasing income tax rebates from ₹7 lakh to ₹10 lakh.
How long have deduction limits remained unchanged?
Deduction limits under Section 80C have not changed for over a decade.
What percentage of taxpayers want lower tax rates?
Approximately 57% of individual taxpayers seek lower income tax rates according to recent surveys.