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  5. Income-tax Budget 2025 expectations: Taxpayers home for more rebates from Finance Minister

Income-tax Budget 2025 expectations: Taxpayers home for more rebates from Finance Minister

Upstox
By Upstox News Desk

5 min read | Updated on February 01, 2025, 06:02 IST

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SUMMARY

Income-tax expectations Budget 2025 Updates: Finance Minister Nirmala Sitharaman may revise personal income tax slabs under the new regime to provide tax relief to salaried individuals, especially the middle class. With just a day left for Budget 2025, stay tuned with this live blog for all the buzz around tax expectations.

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Track all the top income-tax expectations from Union Budget 2025 here | Image source: Shutterstock

  1. Know pre-Budget tax slabs and rates

    As we approach the Budget 2025, it is expected the Government may include some more deductions or tax concessions in the new regime. Tax slabs and rates are also expected to be revised. But such change will apply while filing returns next year, i.e. FY 2026-27. Meanwhile, you can check current tax slabs and rates here.

    February 01, 2025, 06:02 AM

  2. Govt has simplified tax-filing, says President

    Addressing the Parliament on January 31, 2025, President of India Droupadi Murmu says, "Acknowledging the role of taxpayers in nation-building, my government has simplified tax-related processes. The introduction of faceless assessments has enhanced transparency and reduced tax disputes. Senior citizens aged 75 years and above who get only pension now have the choice of deciding about filing their income tax returns." More details here

    January 31, 2025, 13:06 PM

  3. What Central Government Employees expect from Budget

    As Finance Minister Nirmala Sitharaman will present the Union Budget 2025 on February 1, the government employees will keep a watch on any announcement on the roadmap for the 8th Pay Commission, tax relief and pension schemes. Check the top expectations of government employees from the Finance Minister in Budget 2025 here.

    January 31, 2025, 11:55 AM

  4. Income tax calculator: Check your tax liability for AY 2025-26

    Get an an overview of how incomes between ₹10 lakh to ₹50 lakh are currently taxed under the new regime here.

    You can also calculate your tax liability for FY 2024-25 by using the following income-tax calculator.

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    January 31, 2025, 13:12 PM

  5. 10 top expectations from Budget 2025

    With just a day left for the Budget 2025-26 presentation, expectations for tax relief from Finance Minister Nirmala Sitharaman have surged. In the run-up to the Budget, several tax experts, tax advisory firms, and industry bodies have recommended that the government should provide tax concessions to salaried and middle-class taxpayers. Check list of top 10 expectations from Budget 2025.

    January 31, 2025, 10:24 AM

  6. Salary, pension hike in 8th CPC will slowdown fiscal consolidation, says EY

    Ahead of Budget 2025, EY India Chief Policy Advisor DK Srivastava has cautioned that the announcement of the 8th Pay Commission, which will be in effect from FY27, may delay the momentum towards achieving fiscal consolidation targets. "The fiscal consolidation process may slow down as a result of salary and pension hikes based upon the recommendations of the Eighth Pay Commission," he said. More details here

    January 31, 2025, 09:43 AM

  7. Middle-class expectations: Budget should meet these long-standing demand, says expert

    Sandeep Bhalla, Partner, Dhruva Advisors, says India’s middle class has persistently called for meaningful tax relief. "This segment has been squeezed by inflation and rising costs, and the budget presents an opportunity to address their grievances."

    Bhalla suggests following steps through which Budget 2025 can help the middle-class

    • Revision of Tax Slabs: Increasing the basic exemption limit from ₹2.5 lakh to ₹5 lakh and raising the threshold for the 30% tax rate from ₹10 lakh to ₹20 lakh would provide substantial relief.
    • Enhanced Section 80C Benefits: The deduction limit under Section 80C of the Income Tax Act, currently capped at ₹1.5 lakh, should be doubled to ₹3 lakh, encouraging greater savings and investments.
    • Standard Deduction: Raising the standard deduction for salaried individuals from ₹50,000 to ₹1 lakh would put more disposable income in the hands of taxpayers.
    • Child Education and Healthcare Benefits: Providing additional deductions for child education and healthcare expenses would directly address the financial challenges faced by the middle class.

    January 31, 2025, 13:44 PM

  8. Budget expectations live: Expert demands life insurance deduction in new regime

    Budget 2025 Expectations Live: Prashant Tripathy, managing director and chief executive officer, Axis Max Life Insurance, anticipates progressive policy measures that will strengthen India's financial ecosystem and accelerate the journey toward Viksit Bharat by 2047.

    "We urge the introduction of a distinct tax deduction for life insurance, especially term insurance, under Section 80C of the Income Tax Act. Additionally, extending this benefit under the New Tax Regime would broaden financial protection and social security for a larger population segment," Tripathy said. PTI

    January 31, 2025, 08:32 AM

  9. Budget 2025 Live: Will FM increase health insurance deduction limit?

    Ahead of Finance Minister's Budget speech, KPMG says Union Budget 2025 should increase section 80D deduction. "With advancement in healthcare and spiraling medical costs, there is an expectation to increase the current deduction towards health insurance which ranges from ₹25,000 to ₹1 lakh (depending on the family member for whom the insurance is taken and his/ her age) to ₹50,000 to ₹1.5 lakh.

    January 31, 2025, 07:48 AM

  10. Increase home loan deduction to ₹4 lakh, says Aadhar Housing Finance MD

    Aadhar Housing Finance MD and CEO Rishi Anand said the upcoming Budget should focus on reviewing and modifying important regulations that take into account the current state of the housing market essential for making homeownership genuinely affordable.

    "The existing Rs 2 lakh income tax deduction for housing loan interest should be increased to Rs 4 lakh. Additionally, to support first-time homeowners during the waiting period for possession, this refund should apply to residences that are still under construction for a maximum of two years," Anand added. Source PTI

    January 31, 2025, 07:50 AM

  11. Budget on February 1: Experts expect incentives without compromising fiscal prudence

    Budget expectations Live: Experts from various sectors are hopeful that Finance Minister Nirmala Sitharaman will provide rationalised tax rates and incentives to boost growth without sacrificing fiscal prudence in her February 1 Budget.
    Industry players are also expecting that the first full Budget of the Modi 3.0 government will come out with more measures to accelerate the infrastructure growth needed to make India a developed nation by 2047. Source PTI

    January 31, 2025, 09:02 AM