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  5. Income-tax expectations from Budget 2025 updates: Know all expected tax changes here

Income-tax expectations from Budget 2025 updates: Know all expected tax changes here

Upstox
By Upstox News Desk

5 min read | Updated on January 30, 2025, 18:52 IST

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SUMMARY

Expected income-tax changes from Union Budget 2025 Live: Finance Minister Nirmala Sitharaman is likely to revise the personal income tax provisions under the new regime to align with the inflationary trends and alleviate the tax burden of salaried individuals, especially the middle class. In the run-up to Budget 2025, stay tuned with this live blog for all the buzz around tax expectations.

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

  1. KPMG's expectation: No change in tax slab and rates under old regime

    The Union Government may not make any changes in the old tax regime while tax tweaks in the new regime may be minimal, according to KPMG, a global advisory firm.

    This being the first full Budget for the new Government there will always be a slew of expectations from a personal tax perspective, KPMG said.

    However, KPMG believes the budget may not announce any changes to the old tax regime. Also, the tax changes in the new tax regime may be minimal. Read more details here

    January 30, 2025, 11:13 AM

  2. KPMG: Allow up to ₹3 lakh home loan interest deduction in old regime

    Ahead of Union Budget 2025, KPMG has recommended the government to allow tax deductions of up to ₹3 lakh on home loan interest under the old tax regime or include this benefit in the new regime.

    "It is suggested that the Government may reconsider allowing deductions for interest on self-occupied housing loans even under the new default tax regime or enhancing the deduction in the old tax regime to at least ₹3 lakh," KPMG said in a note on Budget 2025 expectations. More details here

    January 30, 2025, 12:42 PM

  3. Budget 2025 expectations Live: Expert demands ₹1.2 lakh standard deduction on salary

    Budget 2025 expectations live: As the Finance Minister prepares another budget speech on February 1, 2025, a tax expert has recommended that the standard deduction limit be increased to ₹1.2 lakh under both the old and new tax regimes.

    "Owing to the inflation and increase in prices in both transport and medical since FY 2018-19, since the time standard deduction was reintroduced, the Hon’ble FM should look at bringing in parity for those opting for either the old or the new tax regime and increase the standard deduction to a minimum of ₹1.20 lakhs a year," said Santhosh Sivaraj, partner, Global Employer Services, Tax and Regulatory Services at BDO India. More details here

    January 30, 2025, 09:59 AM

  4. Tax concession: Here's what EY expects from Budget 2025

    EY India Chief Policy Advisor DK Srivastava says amid continuing global uncertainties, India may have to rely largely on domestic demand drivers to support the growth momentum.

    "The FY26 budget should therefore restore the momentum of growth in GoI's capital expenditure. This may be supplemented by some rate rationalisation and income tax deductions aimed at increasing personal disposable incomes, particularly in the hands of lower income and lower middle-income groups," he said. Source: PTI

    January 30, 2025, 16:37 PM

  5. Budget 2025: Many challenges for FM Sitharaman and her team

    Finance Minister Nirmala Sitharaman, set to make history with her eighth consecutive Union Budget, has worked tirelessly with key officials, including Finance Secretary Tuhin Kanta Pandey, to prepare a budget of over ₹50 lakh crore for FY26.

    The Budget will have to address several challenges, including decelerating economic growth, falling value of Rupee against the US dollar and moderation in consumption demand.

    The economic growth is estimated to slow to a 4-year low of 6.4 per cent in FY25. This is the lowest growth since the outbreak of the COVID pandemic which hit the world in 2019. Source: PTI

    January 30, 2025, 14:22 PM

  6. Tax exemption on ₹10 lakh income, 25% tax slab will reduce tax burden: CA Dr Suresh Surana

    Budget income tax expectations Live: As the Union Budget 2025 is approaching, most people particularly the middle-income group and salaried employees are anticipating reliefs from the government such as an increase in the basic exemption limits, more liberalised tax slabs, enhanced deductions, and other measures that could ease the financial burden.

    As per various media reports, the government is planning the following modifications:

    -Exempt annual incomes of individual up to ₹10 lakh from taxation or -Introduce a new 25% tax slab for incomes ranging from ₹15 lakh to ₹20 lakh.

    "If government approves the above-mentioned changes in the coming budget, it will reduce the tax burden especially of the middle-income group and salaried employees and provide them with a greater amount of disposable income," says CA Dr Suresh Surana.

    January 30, 2025, 12:06 PM

  7. Budget expectations: KPMG recommends direct tax changes

    Ahead of Budget 2025, KPMG has recommended the following changes in direct taxes

    • Incentives for a higher investment in research and development and in the manufacturing sector
    • Measures to reduce tax litigation and to improve the efficacy of the existing tax dispute mechanisms
    • Continuation of rationalisation of TDS/TCS provisions and of capital gain taxation regime
    • Reduction of transfer pricing compliance rigour (by extending safe harbour rules, introducing block assessment etc.).

    January 30, 2025, 09:50 AM

  8. Budget 2025: NRIs expect easy tax rules from FM Sitharaman

    Budget 2025 tax expectations live: As Finance Minister Nirmala Sitharaman is set to present the Union Budget for FY 2025-26, on February 1, experts are hopeful of announcements on streamlining tax rates on property transactions involving NRIs. The changes introduced in the Union Budget 2024 were a mix of good and bad news for NRIs. Higher tax rates on both short-term capital gains (from 15% to 20%) and long-term capital gains (from 10% to 12.5%), and the removal of indexation benefits turned out to be major negatives. Read all expectations of NRIs from Budget 2025 here

    January 30, 2025, 08:49 AM

  9. Budget should exempt first ₹5 lakh income from taxes, says expert

    Budget 2025 tax expectations Live: CA Nitesh Budhadev says the upcoming budget should provide tax exemption on first ₹5 lakh of income. "Currently, incomes up to ₹2.5 lakh in the old regime and ₹3 lakh in the new regime are tax-free. My suggestion: Start the tax slab from ₹5 lakh across both regimes. This would lower tax liability, put more money in people’s hands, and boost GDP growth."

    January 30, 2025, 08:23 AM

  10. What is expected from FM Sitharaman?

    The budget 2025 is expected to revise the personal income tax provisions under the new regime to align with the inflationary trends and alleviate the tax burden of salaried individuals, especially the middle class, according to tax experts. Read more details here

    January 30, 2025, 08:00 AM

  11. Budget 2025 tax expectation Live: Increasing basic exemption and slab limits will provide tax relief, says expert

    Talking about the various ways in which Budget 2025 can provide tax relief under the new tax regime, SR Patnaik, partner, and head of taxation at Cyril Amarchand Mangaldas, says it can be done by increasing the basic exemption limit as well as increasing each of the slab limits by at least ₹1 lakh or ₹2 lakh. Further, the rates of tax may also be reduced for each slab limit. "

    January 30, 2025, 08:00 AM

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