Personal Finance News
3 min read | Updated on January 17, 2025, 16:12 IST
SUMMARY
Ahead of Budget 2025, the government is looking at two options to provide tax relief under the new tax regime. The first option being considered is to increase the standard deduction limit from ₹75,000. The second option is to adjust the tax slabs in the new tax regime, according to media reports.
The decision being mulled by the government revolves around making the new tax regime more rewarding. Representational image
However, the tax slabs and rates in the new tax regime may be tweaked further to provide more relief to taxpayers.
Meanwhile, CNBC-TV18 reported on Friday (January 17, 2024) that the central government is considering a plan to provide tax relief to taxpayers, which would boost consumption and "stimulate economic activity".
As per the CNBCTV-18 report, the government is looking to make the new tax regime more rewarding.
The second option being considered by the government is to adjust the tax slabs in the new tax regime, according to the CNBC-TV18 report. It said the government may expand the 20% tax slab under the new regime to include individuals earning up to ₹18 lakh or ₹20 lakh annually. Additionally, the 30% tax bracket may be imposed on incomes above ₹18 lakh or ₹20 lakh.
Upstox wasn’t able to independently verify both the reports by CNBC-TV18 and FE.
The final decision of the government will be known only on February 1, 2025, when the finance minister will present her budget speech before the parliament.
In the run-up to the budget, however, several tax experts and industry bodies are expecting that the government would revise the tax slab and rates under the new regime to put more money in the hands of taxpayers. This is in line with the government’s efforts to make the new tax regime more attractive with every budget since its introduction in 2020.
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