There is not yet a month left for the budget to appear. The whole budget for 2025 will come on February 1. Big relaxations are likely to await them in it. Regarding the income tax slabs, senior citizens based on salaries and retired pensioners are the most hopeful of leading a relaxation phase at the hands of the government. It is also expected that Modi Government 3.0 will shower a major gift of income tax exemption on the middle class. Therefore, in the upcoming budget, its announcement is due.
Taxpayers expect necessary reforms
The same union budget for 2025 will be unveiled by the honorable Union Finance Minister Sitharaman on February 1, 2025, and it is on the final stage of preparation. A substantial number of important outcomes are due at the general budget. Many reforms, including some changes in the slab of income tax returns, will also find space in this budget.
Changes expected in income tax slabs
The old tax rules are in the old and new regime in the country. The Union Finance Minister is expected to have the new tax regime streamlined. She will be revising the rates of income tax. Income tax experts opine that the above mentioned regime should have a minimum upto 30 percent on incomes exceeding 20 lakh. This would favor the new regime.
Special exemption for senior citizens
The tax regime is a new one by the Central Government and will apply equally to all the payers. Now all the financial and tax experts recommend separate tax slab for the citizens above 60 years. Higher income may levy a lower rate of interest in this case.
Advice to increase standard deduction to 1 lakh
One other relief is being advised for the salaried persons in the idea that standard deductions should be increased to Rs 1 lakh. In the old income-tax regime, standard deduction was Rs 50 thousand. Whereas in the new regime, it was Rs 75 thousand. And, perhaps which needed to be increased to one lakh.
There may be a change in the import duty of gold
This budget might bring about an alteration in the import duty of gold. To keep the trade deficit under control, the government might be considering increasing the import duty on gold. Some time ago, this duty had shrunk from 15 percent to just 6 percent. Now may an attempt to have it for decreasing the trade deficit again.
Possibility of change in Section 80C
In this year’s budget, change in the limit of deductions under section 80C is also being recommended. According to some suggestions of the financial budget, this is suggested to be increased to Rs.1.5 lakh to Rs 3.5 lakh. Besides this, efforts are being carried out to separate from this section the deduction of interest on home loans and to increase the limit. Everything being advised is expected to be modified during this Budget.
