KPMG suggests 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.

Naveen Chandra Jha, MD & CEO, SBI General Insurance, breaks down the insurance expectations from Budget 2025. He says, "As India advances toward financial inclusivity and universal healthcare, Budget 2025 offers a pivotal opportunity to further strengthen the health insurance sector. Anticipated policy measures include enhancing accessibility, simplifying tax benefits, and encouraging innovation in insurance products."

"Additionally, the budget is likely to focus on expanding access in underserved regions through government-private partnerships, targeted subsidies, and advancements in digital infrastructure. By fostering a conducive ecosystem, Budget 2025 can empower insurers to contribute to a healthier, more secure India, aligning with the vision of a Viksit Bharat.”

Currently, homebuyers are required to withhold 1% of the purchase value as Tax Deducted at Source (TDS) when the cost of the property is ₹50 lakh or more. The process of depositing the TDS is simple and convenient when the seller is a resident Indian. However, the rules get complicated when the seller is an NRI. Tax experts anticipate that the finance minister may end these complications today. Read full story

Taxpayers, particularly lower middle tax, may get relief in Finance Minister Nirmala Sitharaman's Budget on Saturday as the government looks to boost consumption to spur a shuttering economy, according to Deloitte India economist Rumki Majumdar said.

Note: Some of the exemptions and deductions in the list may change for FY 2025-26, depending on budget announcements. Stay with this live blog for all breaking updates on any changes to taxation.

Individual taxpayers are expecting big tax relief measures from the finance minister. Following are the tax slabs of individual taxpayers aged below 60 years for FY 2024-25. Please note, the slabs and rates may change for FY 2025-26, depending on budget announcements by the Finance Minister.

• Income-tax slabs and rates for individuals below 60 years in New Tax Regime for FY 2024-25/AY 2025-26

• Income-tax slabs and rates for individuals aged below 60 years in Old Tax Regime for FY 2024-25/AY 2025-26

Following are the tax slabs of senior citizens in new and old regimes for FY 2024-25. Please note, the slabs and rates may change for FY 2025-26, depending on budget announcements.

• Old Tax Regime slabs for senior citizens FY 2024-25

It is widely expected that the finance minister will announce tax cuts or tweaks in income tax rates and slabs to ease the burden of the middle class struggling with high prices and stagnant wage growth.

For foreign taxpayers, certain simplifications are needed, such as allowing tax payments directly from overseas bank accounts without the necessity of opening an Indian bank account and easing the filing of Form 10F, which will go a long way in restoring their trust, says Ashish Agrawal, Partner, Dhruva Advisors.

In the lead-up to Budget 2025, it is anticipated that the FM may do either of the following:

• Expand the current 20% tax slab in the new regime to include employees earning up to ₹20 lakh
• Introduce a new tax slab of 25% to benefit those earning above ₹15 lakh.
• Make income up to ₹10 lakh tax-free by extending tax rebate under section 87A
• May increase the basic exemption limit from ₹3 lakh in the new regime to ₹5 lakh.

While the Finance Minister previously announced plans to revamp the Income Tax Act, a comprehensive overhaul is unlikely in the upcoming budget. However, we anticipate that measures aimed at simplifying tax compliance and expediting dispute resolution mechanisms, particularly at the faceless Commissioner of Income Tax (Appeals) levels, as there has been no significant progress in appeal disposals over the past 2-3 years. Implementing these measures would enhance the ease of doing business and build taxpayer trust, says Ashish Agrawal, Partner, Dhruva Advisors.

It is widely expected that the finance minister will announce tax relief to ease the burden of middle-class taxpayers. Expectations of tax slab cuts, especially for the lower middle class, have soared since Prime Minister Narendra Modi invoked the goddess of wealth to uplift the poor and middle class. In his address to media before the start of the Budget Session on Friday (January 31, 2025), PM Modi said, "I pray to Goddess Lakshmi that the poor and the middle-class sections in the country are blessed by her."